I was residing in the UK from 6 April 2021 till 6 August 2021 and then moved to my home country.
Whilst living in the UK, I was
- Renting an apartment
- I lived in the UK for 3+ years prior to the move on 06 August 2021
- I was an employee of an organisation delivering work for my employer's client (i.e., it is an inside IR35 contract)
Now, from 06 August 2021 onwards, I am not in the UK. I have moved to my home country. I do own an apartment in my home country but I do not live in it. It has been rented out. I lived with my parents in their apartment and then moved cities where I have taken an apartment on rent.
- I continue to work for the same organisation delivering work for my employer's client (via the same inside IR35 contract). No issues w.r.t Data Protection Act / GDPR as the client has also outsourced some of its work to other suppliers who are based out of my home country.
- I get paid on a monthly salary with income tax, employer contribution, National Insurance contribution deducted at source.
Now, for the tax year 2021-2022, am I a UK resident based on the above?
I did the tests and here are my responses.
Automatic Overseas Tests
- First automatic overseas test - I fail this test criteria as I was a resident for all of the 3 years prior to the tax year BUT I spent more than 16 days in the tax year.
- Second automatic overseas test - I fail this criteria as I was a resident for all of the 3 years (and more) prior to the tax year AND spent more than 46 days in the tax year.
- Third automatic overseas test - I fail this test criteria as well as I spent more than 91 days in the tax year. I fail the additional two criteria as well but leaving them out for brevity.
So, I do NOT pass any of the overseas tests.
Automatic UK Tests
- First automatic UK test - I fail this test as I was in the UK only for 122 days instead of 183 days.
- Second automatic UK test - I fail this test as well as the third point within the Second automatic UK test disqualifies me.
- there was at least one period of 91 consecutive days when you had a home in the UK
- at least 30 of these 91 days fall in the tax year when you have a home in the UK and I was present in that home for at least 30 days at any time during the year
- at that time even though I had an overseas home, I was NOT present in it for fewer than 30 days in the tax year
- Third automatic UK test - I pass this test as I qualify for all three points within the Third automatic UK test.
- I worked full-time in the UK for 122 days minus bank holidays and weekends which is a period of 365 days, which falls in the tax year
- since I work for 8 hours or more for my client, it automatically means that more than 75% of the total number of days in the 365 day period when you do more than 3 hours work are days when you do more than 3 hours work in the UK
- since I worked for 122 days minus bank holidays and weekends and for at least 8 hours or more, it automatically means that at least one day which has to be both in the 365 day period and the tax year is a day on which you do more than 3 hours work in the UK
Question: Therefore, in summary, I am considered a UK resident for tax purposes for the year 2021-2022. Is that correct or have I misunderstood anything?