Automatic Overseas Test Print

An individual will be automatically not resident in the UK if one or more of the following three tests are met for that year:

  1. The individual was resident in the UK for one or more of the 3 previous tax years and is present in the UK for fewer than 16 days in the current tax year.

This first test does not apply if the individual dies in the relevant tax year.

  1. The individual was resident in the UK for none of the 3 previous tax years and is present in the UK for fewer than 46 days in the current tax year;
  2. The individual works sufficient hours overseas for the relevant year; and

 There were no significant breaks from overseas work;

The individual does more than 3 hours’ work in the UK for less than 31 days; and

The individual spends less than 91 days, excluding deemed days in the UK during that year.

The calculation of sufficient hours overseas is a mirror image of the sufficient hours in the UK test, except that the reference period is the tax year under review and is as follows:

Step 1

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

Step 2

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

Step 3

Subtract from 365 (or 366 in the case of a leap-year):

The total number of disregarded days, plus

Any days allowed to be subtracted under Paragraph 28 of Schedule 45 Finance Act 2013. As for the UK workday test 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 overseas hours at Step 2 by the answer at Step 4. If the result is 35 or more, then the individual is considered to work sufficient hours overseas in the tax year in question.

This third test is omitted if the individual is an international transportation worker at any time in the relevant year, and at least 6 of the trips that the individual makes in the year 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.

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