HMRC’s revised guidance (HMRC 6) moves a couple of goal posts

16 January 2012 |

HMRC published a revised version of its guidance on residence, domicile and the remittance basis (HMRC 6) on 27 October 2011 (please see the link in the ‘Resources’ section below).

HMRC describes the revisions as “clarifications” but it has re-worked two of the examples of how to calculate the annual average days in the UK for the purpose of the 91-day test that is used to determine UK residence.

Firstly, the new version states that individuals who go abroad to take up employment with a European Union institution will remain ordinarily resident in the UK for income tax purposes (though not for capital gains tax purposes) and will be resident here for any year that they visit the UK no matter how briefly.

Secondly, it also states that a non-EU national who is sent by a UK employer to work in another member state or any worker who is sent by a UK employer to work in Iceland, Norway, Liechtenstein or Switzerland will continue to be subject to UK National Insurance provided that the assignment is designed to last for no more than 12 months.  This is in accordance with the provisions of the old EU agreement on social security rather than the agreement that came into force in May 2010.  The explanation is that the countries mentioned above have not yet signed up to the new EU agreement on social security and the UK has chosen not to apply it to non-EU nationals.


HMRC: Residence, domicile and the remittance basis

For further information or to discuss the issues raised, please contact John Mooney or Bina Gayadien on +44 20 3051 5711.


Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

Related content

13 June 2024
How to apply for certificate of residence in the UK
Where an individual is resident in the UK and has…
29 May 2024
UK Share Plan Reporting 2024: Everything you need to know
The deadline is approaching for the HMRC’s annual return filings…
20 May 2024
Employee Share Plan Reporting 2024: Alerting Your Clients
The UK tax authorities’ (HMRC) submission deadline for annual return…
Subscribe to our newsletter
Stay up to the minute on our latest news and insights?
International reach

We have helped clients meet their HR needs in over 70 countries across five continents.