Step by step UK tax residency test for 2020
We’ve created a series of simple UK tax residency tests. Our tests are free, quick and provide instant online results.
In order to help you understand how HMRC determines tax residency status, we’ve taken our standard UK residency flowchart and converted it into a 4-step quiz. For more information about tax residence, download our free guide to UK tax for expats.
The UK tax year runs from 6th April to 5th April. The current tax year is 2020/21 and began on 6th April 2020. If we ask about the ‘previous tax year’, we are asking for information pre-6th April 2020.
Step 1: Am I automatically non-UK tax resident?
Our first test will determine if you automatically qualify as a non-UK resident for tax. If our test tells you that you are automatically non-UK resident, you can stop there. Should the test be unclear, move onto step two to find out if you’re automatically UK resident.
Step 2: Am I automatically a UK resident?
There are some conditions where an individual is automatically classed as a UK tax resident. Take Step 2 to find out if you would be automatically deemed UK resident and liable for taxation. If you are automatically UK tax resident, you will be liable to report your income and gains to the UK, and pay UK taxes.
Step 3: The sufficient ties test for UK residence
Those neither automatically resident or non-resident, there is a further test to take. This test aims to find out how many UK ties you have. The result of this test will tell you how many ‘ties’ to take to the final step. Some sufficient ties can be controlled for tax planning, while others (like family status) are more difficult to adjust.
Step 4: Sufficient ties test table
Take the number of UK ties calculated above in Step 3 to determine whether you are UK tax resident according to the table below.
- NR = Non-Resident
- R = Resident
The tax residency tests
We appreciate the complexity of tax residence, and the questions we ask. Unfortunately with tests like these, there are several double-negatives and difficult questions. If you’re unsure of anything, and unclear on your tax status send us a quick question online. We’re here to help and can usually answer simple questions via email within a few hours. Getting your tax and residence status right is really important.
For a more detailed explanation of UK taxation and guidance about UK tax reporting requirements, see HMRC’s notes on residence.