The UK has a Statutory Residence Test which defines in law who is resident and who is not. Several UK accountants have made flowcharts.
1. Keeping a UK Bank Account While Living Abroad?
Recently there have been a few claims that keeping a UK bank account maintains UK tax residence. I know that ties like bank account and even phone number matter when leaving some EU countries, but I don't see a bank account being part of the UK rules.
It is possible not to be UK tax resident even if you have a UK "home" and/or "available accommodation". A home is just one of of the ties that can contribute towards tax residence. Many people have multiple homes in different countries and maintain bank accounts at each of those addresses. In practice, most UK expats I know keep a UK bank account.
What is the problem? UK banks don't generally like to provide offshore personal banking. This is to do with issues in your place of residence; UK high street banks don't want to deal with licensing and regulations in other countries. e.g. a Swedish or US person hiding money from their government. Is there also an issue in the UK issue that I have missed?
2. Is P85 Required to Lose Tax Residence?
When leaving the UK, you need to submit a P85 form to claim back any overpaid taxes.
Also, I expect HMRC prefer to have the form to tidy up their systems. Especially if you file self assessment.
Recent posts claim that you need to inform HMRC to become non tax resident.
I can see how you need to do the form-filling to claim split-year treatment or to reclaim overpaid taxes, but if you've been outside the UK for whole tax years and meet the definition of non tax resident according to the Statutory Residence Test, does non-filing of P85 make you resident?
1. Keeping a UK Bank Account While Living Abroad?
Recently there have been a few claims that keeping a UK bank account maintains UK tax residence. I know that ties like bank account and even phone number matter when leaving some EU countries, but I don't see a bank account being part of the UK rules.
It is possible not to be UK tax resident even if you have a UK "home" and/or "available accommodation". A home is just one of of the ties that can contribute towards tax residence. Many people have multiple homes in different countries and maintain bank accounts at each of those addresses. In practice, most UK expats I know keep a UK bank account.
What is the problem? UK banks don't generally like to provide offshore personal banking. This is to do with issues in your place of residence; UK high street banks don't want to deal with licensing and regulations in other countries. e.g. a Swedish or US person hiding money from their government. Is there also an issue in the UK issue that I have missed?
2. Is P85 Required to Lose Tax Residence?
When leaving the UK, you need to submit a P85 form to claim back any overpaid taxes.
Also, I expect HMRC prefer to have the form to tidy up their systems. Especially if you file self assessment.
Recent posts claim that you need to inform HMRC to become non tax resident.
I can see how you need to do the form-filling to claim split-year treatment or to reclaim overpaid taxes, but if you've been outside the UK for whole tax years and meet the definition of non tax resident according to the Statutory Residence Test, does non-filing of P85 make you resident?
