HMRC Guidance - Working Abroad & UK Duties

HM Revenue and Customs (HMRC) issued guidance in March 2011 confirming that where a person works full time abroad, UK duties of fewer than 11 days per annum will not usually be considered in determining a taxpayer's residency status. HMRC have now issued a statement confirming the treatment of those taxpayers working abroad that have returned to the UK due to the ongoing conflict in the Middle East. The advice applies to those countries that HMRC have confirmed where exceptional circumstances apply (Tunisia, Libya, Egypt, Syria, Bahrain and Yemen). 2010/11 The exceptional circumstances arose towards the end of the 2010/11 tax year, therefore HMRC have confirmed that the residency status of taxpayers that returned to the UK temporarily and intending to return to work abroad will not be affected by the number of days of UK duties undertaken in this period. 2011/12 The exceptional circumstances may potentially apply for a much longer period in the 2011/12 tax year. With this in mind, HMRC have confirmed that in line with previous advice UK duties of less than 11 days per annum will not usually be considered in determining a taxpayer's residency status. Cases whereby taxpayers have spent more than 10 days on UK duties will be considered in light of individual circumstances. Eaves & Co have extensive experience in providing residency advice.  Please contact Paul Davison on 0113 2443502 if you have any queries.