Failing the Full-Time Work Overseas Test: A Case Study
Let's look at Mark, who works full-time in Germany but narrowly fails to be automatically non-resident because he spent too much time in the UK.Mark has a full-time job in Germany. He believes this makes him automatically non-resident in the UK. He keeps track of his days in the UK to ensure he stays compliant.
The Conditions for the Test
To be automatically non-resident under this test, you must:
- Work full-time overseas.
- Spend fewer than 91 days in the UK.
- Work for fewer than 31 days in the UK.
Mark's Situation
- He works full-time overseas. (Pass)
- He came back to the UK for various family weekends and holidays, spending a total of 95 days in the UK. (Fail)
- He did no work while in the UK, so he had 0 UK work days. (Pass)
The Consequence
Because Mark spent more than 90 days in the UK, he fails the automatic overseas test. His residency status will now be determined by the more complex 'sufficient ties' test. The 95 days he spent in the UK could now be enough to make him a UK resident, potentially exposing his German salary to UK tax. This demonstrates how crucial tracking your days in the UK is.