Non Residence and Overseas Work Advice
Specialist support for Britons working abroad who want to meet the Statutory Residence Test, manage UK ties and ensure their UK tax position is handled correctly with HMRC.
Non Residence and Overseas Work Advice
Third Automatic Overseas Test
We help clients apply the Full Time Work Overseas Test correctly by reviewing their working pattern, UK days and supporting evidence. This ensures your non residence position is accurate and fully supported.
You work full-time overseas over the tax year, without any significant breaks* during the tax year from overseas work, and:
- you spend fewer than 91 days in the UK in the tax year
- the number of days in the tax year on which you work for more than three hours in the UK is less than 31.
*You will have a significant break from overseas work if at least 31 days go by and not one of those days is a day on which you:
-
- work for more than three hours overseas, or
- would have worked for more than three hours overseas but you do not do so because you are on annual leave, sick leave or parenting leave. (rotational leave is not considered as annual leave)
If you have a significant break from overseas work you will not qualify for full-time work overseas.
We apply these rules to your specific circumstances so you can be confident your position meets HMRC requirements.
Non Residence and Overseas Work Advice
How We Support You
We take the complexity out of UK tax for people working overseas. Our service includes:
- Reviewing your residence position using the Statutory Residence Test
- Assessing your overseas work pattern and UK day count
- Advising on UK ties and how they affect your status
- Preparing your tax return with the correct treatment applied
- Communicating with HMRC where required
We provide clear advice so you can understand your position and avoid costly mistakes.
Non Residence and Overseas Work Advice
Do you work full-time overseas?
We calculate this for you as part of our service, ensuring your working hours and reference period meet HMRC requirements.
You will be considered to work full-time overseas if you work for sufficient hours* overseas as calculated over the tax year in the case of the third automatic overseas test, or other relevant period in the case of split year cases. To calculate if you work sufficient hours overseas, take the following steps:
Step 1
Identify any “disregarded days”: these are any days in the tax year, or the relevant period in the case of split years, on which you work for more than three hours in the UK, including those days when you also do some work overseas on the same day.
Step 2
Calculate your “net overseas hours”: add up (for all your employments and/or trades you carried on) the total number of hours that you worked overseas in the tax year, or the relevant period in the case of split years; do not include in your net overseas hours any hours that you worked overseas on disregarded days.
Step 3
To calculate the number of days in your reference period, start with 365 days, or 366 if the tax year includes 29 February, or use the relevant period if split year treatment applies. From that total, subtract the number of disregarded days, any days that fall within gaps between employments, and any other days that HMRC rules allow to reduce the reference period.
Step 4
Divide the number of days in your reference period by seven. If the answer is more than one and is not a whole number, you should round your answer down to the nearest whole number. If the answer is less than one, round up to one.
Step 5
Divide your net overseas working hours by the number calculated in Step 4. If the result is 35 hours or more, you will have worked sufficient hours overseas for that tax year, or for the relevant period in cases where split year treatment applies.
Non Residence and Overseas Work Advice
Sufficient hours
We review your working hours in detail to confirm whether you meet HMRC thresholds and identify any areas that could affect your non residence status.
To achieve an average of 35 hours/week a minimum of 1850 hours per tax year should be worked overseas.
We recommend that with effect from 6 April 2013 all clients wishing to claim NR status for UK tax purposes, who do not already do so, obtain/retain copies of signed time sheets, countersigned where possible by their manager/employer. See below a further extract from the HMRC guidance notes, this one relevant to working hours and location of work done and the types of additional documentation that should be kept.
Non Residence and Overseas Work Advice
Working hours and location of work done
Where your residence status is determined by the automatic tests relating to working full-time overseas, you should keep information and records relating to:
the split in your working life between the UK and overseas, particularly noting days where you worked (including training, being on stand-by and travelling) for more or less than three hours
the nature and duration of your work activities – a work diary/calendar or timesheet is likely to indicate this. You may find that it would be beneficial to ensure your diary is sufficiently detailed, maybe reflecting hours worked and the nature of your work, for example reviewing and responding to emails, meetings, or filing travel claims
breaks you had from working, for example between jobs, and why
your periods of annual, sick or parenting leavetime you spend visiting dependent children (those under the age of 18) when they are in the UK
time you had to spend in the UK owing to exceptional circumstances:
what your circumstances werewhat you did to mitigate them where that was possible, for example making alternative travel arrangements
your contracts of employment, and documentation/communications which relate to these, particularly to curtailment or extension of these or other changes to them.
It is our firm belief that failure to retain such documentation could result in any claim to NR status being rejected by HMRC, as it will be up to each individual to prove FTWA rather than HMRC having to prove otherwise.
We also assess your UK working days and overseas duties to ensure your position aligns with HMRC guidance.
Non Residence and Overseas Work Advice
Evidence to be provided
We guide you on exactly what records HMRC expects and help you prepare clear supporting evidence for your tax return.
- A completed schedule of UK arrivals and departures, signed by you annually, a completed NR Work History Schedule and a completed Home Overseas questionnaire. Blank forms are available on the forms page.
- Airline tickets, boarding passes, E-tickets etc.
- Passport stamps for non EU travel.
- Holiday booking invoices and travel documentation.
- Credit/debit card receipts for expenditure incurred by you whilst on holiday. Such receipts should be obtained 1 or 2 days after arrival in your holiday destination, sometime in the middle of your stay and 1 or 2 days before departure/UK return.
- Overseas car hire receipts etc.
HMRC can also ask to see mobile telephone statements, bank and credit card statements, utility bills etc. This list is to be used as a guide only and may not be exhaustive.
Proper documentation is key to avoiding HMRC enquiries and ensuring your claim is accepted.
Get Your Residence
Position Checked
Send us your work details and UK ties and we will confirm whether you meet the non residence conditions and how the rules apply to your situation.
Non Residence and Overseas Work Advice
Frequently Asked Questions
These are some of the most common questions we are asked by clients working overseas or planning to do so. If you are unsure about your position, these answers will help you understand how the rules apply to you.
Still unsure about your position
Send us your details and we will assess your situation and explain your UK tax position clearly.
- +44 191 740 0450
- admin@expattax.co.uk
Non residence means that you are not treated as a UK tax resident for a particular tax year. This can affect how your income is taxed, including whether your overseas earnings are subject to UK tax.
Your status is determined using the Statutory Residence Test. This looks at your time spent in the UK, your overseas work and your connections to the UK. We assess all of these factors to confirm your position.
No. Working abroad does not automatically mean you are non resident. You must meet specific conditions, including limits on UK days and UK working days, and avoid triggering automatic UK residence rules.
The number of days you can spend in the UK depends on your individual circumstances, including your UK ties and whether you were resident in previous years. There is no single limit that applies to everyone.
If you exceed the allowed number of days based on your situation, you may be treated as UK resident. This can result in your worldwide income becoming subject to UK tax.
In many cases, yes. HMRC should be informed when your circumstances change, particularly if you leave the UK to work overseas. This helps ensure your tax position is handled correctly from the start.
We typically need details about your employment, travel dates, UK ties such as accommodation or family, and any income received in the UK or overseas. This allows us to apply the rules accurately.
Yes. Once authorised, we can communicate with HMRC for you, respond to enquiries and manage your tax return to ensure everything is handled correctly.