10 days enough for residence?
There has been a certain amount of press coverage in recent days indicating that HMRC will argue someone is UK resident if they work for 10 days here. This is misleading and unhelpful in trying to understand the rules. What the Revenue have said is that in assessing whether an individual is on a full time contract of employment abroad they will not challenge the position where UK days are 10 or fewer. Where UK days are more than 10 HMRC may check to satisfy themselves that there is a genuine contract of employment for full time work abroad and that residence or otherwise will depend on the circumstances of the case.
Roll on the statutory residence test and hopefully we can avoid this sort of misunderstanding going further.
Lisa Spearman is a partner at Mercer & Hole. If you would like to discuss the contents of this post with Lisa you can call her on 020 7353 1597.
Date: 5th April, 2011
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