Another nudge letter from HMRC possibly to your clients just before Christmas and the peak of the tax return season.
This time HMRC are wanting taxpayers to review their residency position before they submit their tax returns, or to undertake a “repair” if they have already done so.
Applying the Statutory Residence Test each year can be tricky as it applies to income tax, capital gains tax, inheritance tax (and not forgetting corporation tax).
In summary, HMRC may consider a person to be resident in the UK and taxable on their worldwide income if they spend 183 days or more in the UK but this can be triggered for some if they spend less than 183 days. Interest and penalties can apply to any tax paid late.
Ignore HMRC at your peril (and your client’s peril).
If you need any assistance, please contcat me at firstname.lastname@example.org.