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HMRC adopts online residence tool

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.

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