How Many Days can UK Expats Spend in the UK and Retain Non-Resident Status
In this article, we consider UK Non-Resident tax rules and we answer the question, how many days can UK Expats spend in the UK whilst retaining non-resident status?
Are you planning your UK trips and work schedule for the tax year ahead?
Are you unsure of how much time you can spend visiting family, on business or working in the UK?
Today we will outline how a UK Expat Living and Working Abroad can plan business and family trips to the UK without impact on your UK non resident tax status.
When does an Expat become Non Resident in the UK?
You could be considered non resident to the UK from the day you leave the UK, but under common reporting standards you must have a tax residence elsewhere.
The 183 day tax rule
Expats can become non resident in the UK by living for 183 days or more in another country as a tax resident there. This is known as the 183 day tax rule.
Once you are considered a non resident for tax purposes in the UK, you can still visit the UK without losing your non-resident tax status.
If you are a tax resident in a low-tax country like Cyprus, Malta, Monaco or the Middle East, you will likely want to save up to 40% by remaining an Expat under the UK non resident tax rules.
Let’s look at how you may be affected.
How many days can I spend in the UK as a non resident?
There are thresholds and conditions that determine how many days you can spend in the UK as a non resident Expat. These conditions are subject to your ties to the UK and how you spend time in the UK.
For UK Expats already Non Resident and Living and Working Abroad :
46 Days - If you spend less than 46 days in the UK in any year, you will maintain your non resident status (provided you have not been classed as a UK resident for the previous 3 tax years. If you have had non resident status for less than this, you must spend less than 16 days in the UK).
90 Days - If you spend up to 90 days a year in the UK you must have 3 or less ties.
Non Resident Ties to the UK
To avoid ties to the UK you could:
Work for less than 40 days in the UK in any tax year
Own residential property (or any home) without spending more than 1 day a year staying in the property (if you spend more than one day a year in property you own in the UK, that is considered a tie for tax purposes)
More than 90 days in the UK is a tie if you do so in any one of the current or previous 2 tax years
Spend more time in one other country as tax resident than in the UK in any tax year
Your family (spouse, partner and minor children) should live abroad with you, in the UK it is a tie (but not a burden)
You can spend more time in the UK - up to 182 days in any tax year and remain tax resident, as long as you don’t become tax resident in another country, by being resident for more than 183 days.
120 Days - to stay in the UK up to 120 days you must have 2 or less ties to the UK.
182 Days - to stay in the UK up to 182 days you must have 1 or less tie to the UK.
Avoid ties to the UK to remain non resident of worldwide UK tax on income.
Free and Non Resident
Expats who want to avoid liability to UK Tax under UK non resident tax rules must follow these regulations. Consider your ties to the UK.
ProACT Partnership offers a free review of your Expat circumstances (wherever you are in the world) and will guide you on retaining your non resident tax status.
Book a free online review or contact us with your questions.