Need advice on 183 day tax rule in UK

chicanne

Hi,

Urgently need advice after receiving conflicting info from HMRC advisors.

Basically I am moving to Spain permanently next year and am going to become a Spanish resident with no ties in UK ie. property, assets or bank account.

I work offshore in the Uk and am on a two on and two off rota so my off time will be spent in Spain. I also will be taking 2 weeks leave each year which will be spent abroad. Therefore effectively I will be spending only 169 days in Uk each year which is less than the 183 day rules required for non resident status.

Two tax advisors in HMRC have told me I will be exempt from paying Uk income tax but a third is adamant that I will have to pay the income tax, he says the 183 day rule is irrelevent.

Nobody seems to be able to give me exact information.

Can anyone help me

Chic

TM1976

Your application of the 183 day rule is incorrect, on average you must spend less that 91 days in the UK in order to be non-resident, so if you spend 169 days every year that's too many.

Residency isn't absoluely based on the number of days spent in the UK though it may be possible to still be non-resident. This is quite a specialist area though you are unlikely to reach this kind of agreement without expert advice.

chicanne

still confused tho, what is the 183 day rule then as I know that this exists as well as the 90/1 day rule?

When does each apply and what do they mean?

TM1976

chicanne wrote: »

still confused tho, what is the 183 day rule then as I know that this exists as well as the 90/1 day rule?

When does each apply and what do they mean?

They are more of a guidline that a rule as there is no statutory test for residency.

Basically in a year you can spend 183 days in the UK but on average you shouldn't spend more than 91 over a rolling 4 year period. So for every year you spend 169 days you are going to have to have another where you only spend about 10.

chicanne

Thanks, i have got a better idea now.

Looks like i will be paying income tax.

I just wanted some clarification as the guys I have spoke to in inland reveunue have given me conflicting information which is quite alarming that they dont seem to know exactly what they are talking about, especially as they are there to give out information on tax issues!

I have however been in touch with a professional tax advisor who says he thinks there is a way around this.

I will wait and see what he comes back with but want to keep tax matters correct and would not want to be involved in anything that is complicated and dodgy.

michymo

I am glad you have sought professional advice - I moved to Republic of Ireland 3 years ago and planned to stay there but after 2 years my circumstances changed and I returned to Northern Ireland - HMRC has started "hounding" me (that is the only word I can use it is a disgrace - I had to self assess for 07/08 and 08/09 even though I always worked and paid my taxes through the PAYE system. Faced with a mountain of paperwork I was unfamiliar with I did my best to get through to HMRC "helpline" and eventually did so and like you got totally conflicting information on numerous ocassions. They have decided I owe them over £6000 - how I don't know and they have added onto my tax bill student loan repayments even though I have repaid my student loans in full? No one there will speak to me and give me straight answers I am at my wits end so may also have to contact a professional tax advisor. My advice to you is be careful because as you have found out every person you speak to at HMRC has something different to say.