“I spent in the UK less than 183 days, that’s why I’m not tax resident there” is the most common misconception that Imperial & Legal encounters almost on a daily basis. Another popular misconception is that a type of visa affects tax residency, and you are not tax resident until you get an indefinite leave to remain (ILR). This is wrong as well.
Your immigration and tax statuses in the UK are not interconnected directly; there is only an indirect connection. Tax status, i.e. whether you need to pay all taxes in the UK, can only be determined with a Statutory Residence Test (SRT). It will establish your status and whether you need to pay taxes, and which ones, even if you have spent in the country only a few days.
Imperial & Legal strongly recommends to identify your tax status before you move to the UK, and once you are in the UK to make sure you fulfil all your tax obligations. You can take a SRT yourself but it’s advisable to get professional help to identify your tax status and plan your taxes.
If based on the test results you are classed as tax resident, two main rules apply to you like to any other UK resident:
However, there might be exceptions to these two rules based on personal circumstances. For example, when moving to the UK to settle you will most probably become its tax resident from the arrival date instead of the tax year start date. Besides, all non-domiciles, i.e. those who were not born in the UK, can choose to be taxed on the remittance basis. They will only be taxed on income earned in or brought to the UK.
You also need to be aware of double taxation when you have to pay taxes in two countries. It can be avoided if the UK has a double taxation treaty with the country where you are tax resident.
All the points above require explanations and have restrictions that need to be viewed individually. For example, you need to identify your connections to the UK for sufficient ties test as part of the SRT test. These ties can be a family tie, an accommodation tie, a work tie, or a 90-day tie. However, not all family members can provide such connection. For example, if your children study at school or full-time at a college or university in the UK, you will only have a family tie with them if you spend time with them in person in the UK more than 61 days during term-time and more than 21 days outside term-time during summer break.
Experts at Imperial & Legal will answer all your questions about visas, immigration and tax statuses. We will help you prepare for the move to the UK and advise on what to do with your tax liabilities going forward. Besides, we will bring all your immigration and tax issues in the UK into accordance.
We will work with you to find a customised solution for your immigration, second citizenship, business, tax and other needs.
Determine your tax status
UK Tax Residence Test
Self-Assessment Tax Return
Visas to the UK
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