Determining when an individual is tax resident in the UK is very important.

The reason is that it determines whether a taxpayer has to pay tax on its worldwide income.

The treatment of UK resident or non-resident UK taxpayer doesn’t no change when income is earned in the UK.

When income is earned in the UK, they are taxable in the UK without consideration for the residency status of the taxpayers.

UK residence status and treatment is determined if an individual is also domiciled in the UK.

If they meet certain test within a tax residency test based on the numbers of days the spend in the UK in a tax year.

When a taxpayer is automatically a tax resident in the UK.

A  taxpayer will be a resident in the UK when they have either spent 183 or more days in the UK in the tax year or their only home was in the UK and they lived in it for at least 91days in total and you spent at least 30 days there is a tax year.

This home could be a rented or owned home in the UK.

When is a taxpayer is automatically non-resident in the UK?

When a taxpayer spends fewer than 16 days in the UK in the tax year or 46 days in the last 3 previous tax years, they will be non-resident.

They will also be non-resident when they work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working.

What happens when a taxpayer is a  tax resident in the UK.

When an individual is a taxpayer is a resident in the UK, they pay tax on income and gains earned worldwide an arising basis.

They will have to declare this income on their self-assessment yearly.

If the individual has paid tax in the other country they have earned the income, they will be able to claim tax relief for the tax already paid in the UK.

Conclusion

When you are a UK resident, you will have to declare worldwide income earned abroad in the self-assessment returns.

If you would like to support you with declaring your income earned abroad, kindly contact me.