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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Residence: The SRT: Days spent in the UK: Work for the purpose of the SRT

Time spent working is relevant in several places in the SRT:

  • the third automatic overseas test (see RDRM11140), may apply if an individual works full-time overseas
  • the third automatic UK test, (see RDRM11370), may apply if an individual works full-time in the UK
  • an individual will have a work tie, (see RDRM11560), if they work for more than 3 hours in the UK on at least 40 days in the tax year
  • an individual may be entitled to split year treatment, (see RDRM12000 onwards), if they leave the UK to work full-time overseas, or arrive in the UK to work full-time here

Work takes its everyday meaning. If the individual is an employee, work covers the activities they carry out in the performance of their duties. If an individual is self-employed it covers the activities they carry out in the course of their trade, profession or vocation.

A vountary post for which an individual has no contract of service does not count as work for the purpose of the statutory residence test.

An individual’s time spent working includes:

  • instances where their employer instructs an individual to stay away from work, for example while serving a period of notice  while they remain on the payroll
  • travelling time where the cost would have been a deductible expense for tax purposes had the individual incurred and paid for the costs themselves, regardless of whether or not they worked during the travel in question
  • travelling time to the extent than an individual works during their journey, regardless of the rules on deductibility
  • job related training
    • provided or paid for by an individual’s employer
    • if the individual was self-employed, where the cost is an allowable deduction against their profit for income tax purposes

It may be important for an individual to know how many hours they have worked in a day, because:

  • in order to meet the third automatic overseas test an individual must not work more than 3 hours a day in the UK on more than 30 days in the tax year
  • in order to meet the third automatic UK test more than 75% of days on which an individual works for at least 3 hours must be days spent working in the UK
  • an individual will have a work tie if they work more than 3 hours a day in the UK on 40 days or more

Even though days on which less than 3 hours work is carried out in the UK are ignored for SRT purposes, they should still be taken into account when an individual is calculating their UK taxable income.

An individual will need to keep records which identify the number of hours they have worked in a given day.