HM Revenue & Customs has begun to issue letters to individuals who submitted 2021/22 tax returns claiming non-UK residence, but where other information supplied would suggest they were, in fact, UK-resident for tax purposes.

The correspondence encourages taxpayers to review their position prior to submitting tax returns for 2022/23, and to amend incorrect 2021/22 returns.

Why does my UK residence status matter?

Your UK residence status matters, because it determines whether you are required to pay UK tax on any foreign income that you receive.

Non-UK residents will only pay UK tax on the UK income they receive, whilst UK-resident taxpayers will pay tax on all their income – both UK and foreign.

Worth noting is that separate rules apply where you are UK resident but domiciled outside of the UK.

Residence is typically decided based on the number of days you spend in the UK during a tax year (6 April – 5 April in the following year).

If you are unsure about your residence status, it is important that you seek professional advice; as accountants, we can help you determine whether you are UK, or non-UK resident in any given tax year and the to understand the associated tax implications.

HMRC also offer an online tool, which you can use to help check your residence status for any tax year from 6 April 2016.

How can George Hay help?

If you receive a letter from HMRC regarding your residence status, and you are unsure about your position, please make contact with us.

We can help you to determine whether you are UK, or non-UK resident and we can support you to ensure that your Self-Assessment Tax Return is accurate.

To talk to one of our expert tax advisers, please call one of our offices or fill in our online enquiry form

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