Automatic UK Test Print

An individual will be automatically resident in the UK if one of the following three tests is met for that year:

  • The individual is present in the UK for 183 days or more in a tax year;
  • The individual has a home in the UK for a period of at least 91 consecutive days, and is present in that home for at least 30 days during the tax year, and
  • Either has no home overseas for a period of 91 consecutive days, or more, or if the individual has one or more homes overseas in none of which he is present for more than 30 days in the tax year.
  • For the above purposes, if the individual has more than one home in the UK the above test is applied to each home separately to see whether this second test is met. Additionally, the day counting rule does not depend upon being in the home at midnight, but by merely visiting the home at any time during the day will count as being present for a day, however brief the visit.
  • The individual works sufficient hours in the UK, as assessed over a period of 365 days or more during which there are no significant breaks; all or part of the period falls within the relevant tax year, and more than 75% of the total number of days in the relevant year when the individual does more than 3 hours’ work are days when the work is carried out in the UK.
  • A significant break is defined as a period of 31 days or more during which period there are no days on which the individual does more than 3 hours’ work in the UK other than absences due to annual leave, sick leave or parenting leave.
  • An individual works sufficient hours in the UK if the result of the following calculation is 35 or more:

Step 1

Identify any days during the period on which the individual works more than 3 hours overseas. This includes days where work is also carried out in the UK on the same day. These days are “disregarded days”.
Step 2

Add up the total number of hours that the individual works in the UK during the period, but ignoring any hours worked in the UK on disregarded days. This figure is referred to as the individual’s “net UK hours”

Step 3

Subtract from 365:

  • The total number of disregarded days, plus
  • Any days allowed to be subtracted under Paragraph 28 of Schedule 45 Finance Act 2013. Broadly these are periods of leave, sick leave, and non -working days embedded into a block of leave, provided that there are at least 3 consecutive days of leave both before and after the non-working days.
  • There are also specific rules where the individual changes employment within the given period, and there is a gap between the employments, then the number of days in the given period may be reduced by the number of days in that gap, subject to a maximum of 15 days. Where the individual changes employment more than once during the period, the maximum number of days that may be subtracted for all gaps is 30.
  • The result is known as the “reference period”.

Step 4

Divide the reference period by 7, and round the answer down to the next whole number. Where the answer is less than 1 round this up to 1.

Step 5

Divide the net UK hours at Step 2 by the answer at Step 4. If the result is 35 or more, there are considered to be sufficient hours in the UK over the 365 day period in question.
This third test is omitted where the individual is an international transportation worker, and at least 6 of the trips that the individual makes in the tax year under review as part of that job are cross-border trips that begin in the UK, end in the UK, or begin and end in the UK.

Example:

Maurice came to work in the UK on 10 December 2014. During the year to 9 December 2015 he spends 217 workdays in the UK and works for a total of 1,800 hours during those workdays. He spends 20 days overseas and on each day he works for more than 3 hours. He takes 25 days holiday during the year, and 2 non-working days are embedded in a block of leave. He has no sick leave, or other leave. He has a home in South Africa where he was living with his family up to the time he came to the UK. His residence position is as follows:

Step 1

20 days – disregarded days

Step 2

1,800 UK Hours

Step 3

365 – (20 + 25 + 2) = 318 (Reference Period)

Step 4

Divide 318 by 7 = 45.42 rounded down to 45

Step 5

Divide 1,800 by 45 = 40. As this is more than 35 Maurice is treated as Automatically Resident for the year 2014/15.

If instead, Maurice spent 40 workdays overseas, and his UK hours are 1,450 then the position would be as follows:

Step 1

40 days – disregarded days

Step 2

1,450 UK Hours

Step 3

365 – (40 + 25 + 2) = 298 (Reference Period)

Step 4

Divide 298 by 7 = 42.57 rounded down to 42

Step 5

Divide 1,450 by 42 = 34.52. As this is less than 35 Maurice has not spent sufficient hours in the UK, so he will not be treated as Automatic resident here under this test.

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