What is the difference between being tax-free and paying a HUGE tax bill when you work abroad?
It’s not a riddle or the start of a bad joke, the answer is simply one day. That is all it can take, just one day.
When you are claiming non-residency under HMRC’s third automatic overseas test (RDR3: Statutory Residence Test (SRT) notes – GOV.UK (www.gov.uk)) you need to be very careful with recording and calculating your travel days. Logging just one date incorrectly could mean that you believe you have met the criteria when you haven’t.
HM Revenue & Customs could randomly select your tax return for a compliance check to ensure all details are complete and correct. HMRC will contact the Home Office for your travel record, they will also contact you for the travel records you hold.
Things to remember:
- Ensure you accurately record every trip in and out of the UK.
- Make sure you have a record of the hours and days that you have worked overseas.
- Make sure you do not spend more than 30 consecutive days away from your overseas work, a holiday does not break up the 30 days.
If in doubt, contact a tax adviser who specialises in this area who can help you with record keeping – info@whittakerandco.com
