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Discussion Starter · #1 ·
I am a British citizen. Currently living in India on a student visa. At the same time I am a full time employee of an UK business, working from home.
I do not plan to come back to live in the UK.
would Istill consider as UK tax resident? Any help would be appreciated. Thanks
 

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Whether or not you live in the UK, while you are employed by UK business and are on their UK payroll you will be taxed as UK resident.
If you become self employed and bill the UK business for your services and you inform the HRMC that you are no longer resident the UK company could stop deducting taxes and you pay them in India.
 

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Discussion Starter · #3 · (Edited)
Thank you so much for your reply. That brings one more question....
So, if I become self employed or have a registered limited company and provide services to a UK company would I still be considered as UK tax resident? Reason for my question is, I have some ISA going on in a UK bank account and to be able to continue saving into that allowance I would need to be an UK tax resident. Any help would be appreciated. Thanks again.
 

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Thank you so much for your reply. That brings one more question....
So, if I become self employed and provide services to a UK company would I still be considered as UK tax resident? Reason for my question is, I have some ISA going on in a UK bank account and to be able to continue saving into that allowance I would need to be an UK tax resident. Any help would be appreciated. Thanks again.
You can't be a UK resident to pay into your ISA and be a non resident in order to not pay tax. Most people who leave the UK and never intend to return become non residents if they have investments in the UK. Why would you continue to pay into a UK ISA? Then again why would you continue to pay payroll tax on your earnings in the UK if you never intend to return?
 

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Discussion Starter · #5 ·
Well, I do not intend to return in the short term but in the long term I may decide to return, because I would still have my uk address, UK bank account, pension, isa that I have invested in so far etc etc.
So I guess, to access my investments, I must remain as an employee of an UK company to keep my uk resident status. Is my understanding correct?
 

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You can access your investments you can't continue paying into them if you are a non resident.
 

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I am a British citizen. Currently living in India on a student visa. At the same time I am a full time employee of an UK business, working from home.
I do not plan to come back to live in the UK.
would Istill consider as UK tax resident? Any help would be appreciated. Thanks
It all depends on your Days in the UK for the UK tax period, April 6 to April 5. Non-Residents are only taxed on UK source Income. Is your UK income more than Personal Allowance?
 

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Discussion Starter · #8 ·
It all depends on your Days in the UK for the UK tax period, April 6 to April 5. Non-Residents are only taxed on UK source Income. Is your UK income more than Personal Allowance?
Yes. Its more than personal allowance.
Also in the resident test, it says if anyone works full time in the UK then that person automatically becomes UK tax resident. So then, I am an UK tax resident and That’s what is confusing me with other test rules.

3.3 Third automatic UK test
You’ll be UK resident for the tax year if all the following apply:
  • you work full-time in the UK for any period of 365 days, which falls in the tax year
  • more than 75% of the total number of days in the 365 day period when you do more than 3 hours work are days when you do more than 3 hours work in the UK
  • at least one day which has to be both in the 365 day period and the tax year is a day on which you do more than 3 hours work in the UK
 

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Yes. Its more than personal allowance.
Also in the resident test, it says if anyone works full time in the UK then that person automatically becomes UK tax resident. So then, I am an UK tax resident and That’s what is confusing me with other test rules.

3.3 Third automatic UK test
You’ll be UK resident for the tax year if all the following apply:
  • you work full-time in the UK for any period of 365 days, which falls in the tax year
  • more than 75% of the total number of days in the 365 day period when you do more than 3 hours work are days when you do more than 3 hours work in the UK
  • at least one day which has to be both in the 365 day period and the tax year is a day on which you do more than 3 hours work in the UK
Ok, I get it. You might want to wait for further guidance from HMRC at this point. A lot of people due to pandemic find themselves in this situation. In the US, some states have put out the " Convenience Rule ". This has led to double taxation on the State Tax returns. If you go by the 3rd automatic UK test, its states 75% in the UK, which you aren't. The best solution would be to contact HMRC and see what they have to say. Thanks.
 
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