AN ONLINE TOOL has been launched to help people determine their residence status for tax purposes, HM Revenue & Customs has announced.
The Tax Residence Indicator (TRI) asks people a number of questions before telling them what their status is.
It was created as part of the statutory residence test, introduced in April 2013. The test gives people who may move in and out of the UK greater clarity and certainty over their residence status.
HMRC's new tool allows people to go onto the HMRC website, input their personal details, and quickly establish whether they should be paying tax in the UK. The people potentially affected include expatriates, pilots, cabin crew and cruise workers, rig workers, foreign students, health workers, seasonal workers and others.
Personal tax director Mary Aiston said: "It is important that people who come and go from the UK keep records that are readily available. Their residence status is assessed according to time spent in the UK, in conjunction with their other ties to the country.
"The old statutory residence rules were complex and lacked clarity, with the definition of tax residence resting on legal cases decided in the courts over a long period. The new residence test is clearer."
The residence status of most people is expected to remain the same under the new residence test.
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.