There has been a significant change to non-residency rules from this April 2013.
The following is a brief précis of the new rules that came into force on 6 April 2013. It is important these are not read in isolation and if you have any concerns regarding your non-residency status you should contact us to discuss this further.
From 6 April 2013 non-residency will be determined by the “Statutory Residence Test” (SRT). These tests will determine if you meet the Residence or Non-Residence test.
There is no provision made for averaging your days in the UK over a four year period as previously. It is therefore vital that days in the UK are kept to 90 days or less from 6 April 2013 and that the averaging rule is not relied upon for past years coming into the 2013/14 tax year. Days spent working in the UK (3 hours or more is a work day) should be kept to 30 or below.
You must be non-resident for a minimum of one complete UK tax year, 6 April to 5 April.
If you are not working full-time overseas other factors are taken into account and you may only be able to spend a maximum of 15 days in the UK to be considered non-resident. Any significant break in work (except when on leave) could break a non-residency claim.
International Transportation Workers (ITW) which includes mariners, crew, airline pilots, lorry drivers etc. are specifically excluded from being considered under the full-time overseas workers test.
If you do not meet the automatic overseas test you will be considered UK resident if you spend 183 days or more in the UK in the tax year or if you have a home in the UK (which is not permanently let and therefore unavailable for your use) and spend 30 days or more (a day for this purpose need only be a couple of hours, not necessarily there at midnight) at the UK home in the tax year and 30 days or less are spent in your overseas home.