Tax Residence
UK Tax Residency is generally determined by, inter alia, the amount of time you spend in the UK. However, it is not always that clear cut and under certain circumstances you may be deemed to be a UK Tax Resident under other circumstances. Tax Residence is important as it may affect the amount of tax you have to pay.
If you’re coming to the UK to work as a freelance contractor you should inform the HM Revenue and Customs of your intentions when you arrive. To do this you need to complete a Form P86 (Arriving in the UK). It is important to outline your long term intentions as the ability to claim certain expenses may depend on your ordinary residency status.
If you have not yet travelled to the UK you may be in a very fortunate position. To find out more call Commonwealth Contractors now on 0800 294 4388! We may also be able to help you if you require assistance with a UK work visa such as a Work Permit or HSMP visa and discuss which contracting solution to use when you arrive, such as an umbrella company or contractor limited company. For more Information call Commonwealth Contractors now on
0800 294 4388 or
Submit your details and we will get right back to you!
Calling us before you travel may help allow additional relocation expenses
to be reclaimable against tax.
What determines a persons Tax Residency?
Tax Residency is normally determined by the amount of time you spend in the UK. You will always be deemed to be UK Tax Resident if you have spent 183 days or more in the UK in a tax year.
The 183 days do not have to be spent in the UK all at one time. You may come and go as many times as you wish throughout the tax year and so long as you do not spend more than 183 days in the UK in total you will not be considered tax resident. Historically HM Revenue and Customs has not considered arrival and departure days when determining tax residency status, but there are suggestions that this will change.
Is it possible to be Tax Resident in two countries at the same time?
Yes, it’s possible to be resident (or ordinary resident) in both the UK and another country or countries at the same time.
If the UK has a double taxation agreement in place with the country in which you also hold tax resident status there may be special provisions in the agreement which allow you to be considered as the resident of only one of these countries.
To find out more about how Commonwealth Contractors can help Freelance Contractors call now on 0800 294 4388 or submit your details and we will get right back to you
Related Residence and Domicile Pages:
Quick Menu
