Trying to better understand UK tax residency.
Tax year 2017-18 I was resident in the UK, working via my UK limited. Uncomplicated.
Tax year 2018-19 (so far) I have not been in the UK at all, and my UK limited has been dormant. Due to an inheritance this tax year (on which the tax was already paid) I've only paid myself a small dividend. I've been travelling around a fair bit. But haven't spent long enough in any one place to qualify as tax-resident in that place.
In an effort to keep my tax affairs simple, because of my limited, etc. it seems reasonable - for now - to remain tax resident in the UK. As far as I can determine from the UK statutory residence test, because I was tax resident last year, a simple way to achieve that would be to spend 16 days in the UK in the current tax year (and not spend long enough anywhere else to become tax resident there). Nb., I don't believe I'd qualify on enough of the 'sufficient ties' otherwise, don't have a house in the UK etc.
Anyone with experience of this have a different opinion?
Also, the 16 days seems a little arbitrary. I mean, if I only spent 5 days in the UK, or none, and I'm not tax-resident elsewhere, is the UK really going to object if I want to pay tax there? Unless I pay out further dividends, we are talking about paltry amounts. Isn't there any kind of fallback on citizenship as a determinant in the absence of other factors?
Tax year 2017-18 I was resident in the UK, working via my UK limited. Uncomplicated.
Tax year 2018-19 (so far) I have not been in the UK at all, and my UK limited has been dormant. Due to an inheritance this tax year (on which the tax was already paid) I've only paid myself a small dividend. I've been travelling around a fair bit. But haven't spent long enough in any one place to qualify as tax-resident in that place.
In an effort to keep my tax affairs simple, because of my limited, etc. it seems reasonable - for now - to remain tax resident in the UK. As far as I can determine from the UK statutory residence test, because I was tax resident last year, a simple way to achieve that would be to spend 16 days in the UK in the current tax year (and not spend long enough anywhere else to become tax resident there). Nb., I don't believe I'd qualify on enough of the 'sufficient ties' otherwise, don't have a house in the UK etc.
Anyone with experience of this have a different opinion?
Also, the 16 days seems a little arbitrary. I mean, if I only spent 5 days in the UK, or none, and I'm not tax-resident elsewhere, is the UK really going to object if I want to pay tax there? Unless I pay out further dividends, we are talking about paltry amounts. Isn't there any kind of fallback on citizenship as a determinant in the absence of other factors?
but will come back to you on that one
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