Statutory Residence Test (SRT) – UK Tax Residency Advice
Understanding your UK tax residency status is crucial to determining your liability to UK income tax and capital gains tax. The Statutory Residence Test (SRT) is the framework HMRC uses to decide whether an individual is treated as UK resident for tax purposes. As experienced UK accountants, we help both UK-based individuals and those living abroad navigate this complex area with confidence.
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What Is the Statutory Residence Test?
Introduced in 2013, the SRT sets out clear rules for establishing whether you are UK tax resident in a given tax year. It considers three main areas:
- Automatic Overseas Tests – You may be treated as non-resident if you spend fewer than a specified number of days in the UK (generally fewer than 16 or 46 days, depending on your UK ties).
- Automatic UK Tests – You may automatically be UK resident if you spend 183 days or more in the UK, have your only home in the UK, or work full-time in the UK.
- Sufficient Ties Test – If neither of the above tests applies, HMRC will look at your “ties” to the UK – such as family, accommodation, work, or time spent here – and match them to the number of days you are present in the UK to determine your residence status.
Getting this right is important, as it affects which income and gains are taxable in the UK.
Common Scenarios We Advise On
If you are unsure about your UK residency status, or if your circumstances are changing due to relocation, work, or personal reasons, now is the time to seek professional advice. Contact us today to arrange a consultation. We will help you navigate the Statutory Residence Test with confidence and ensure your UK tax position is correct and optimised.
We regularly help clients with:
- Moving to or leaving the UK – planning your departure or arrival to maximise tax efficiency.
- Split Year Treatment – applying the split year rules where your UK residence status changes partway through a tax year.
- Non-Domiciled Individuals – assessing the remittance basis and its impact on your global income.
- Frequent Travellers – tracking day counts to remain within non-resident thresholds.
- Expatriate Assignments – advising employees and employers on UK residency during secondments.
- Double Taxation Relief – ensuring you claim available relief under relevant double tax treaties to avoid being taxed twice on the same income.
Why Choose Zahtax Accountants
At Zahtax Accountants, we specialise in UK tax residency advice and provide expert guidance on the Statutory Residence Test (SRT). Determining your tax residency status can be complicated, especially if you travel frequently, work abroad, or have multiple income streams. Our experienced team makes the process simple by carefully reviewing your day counts, UK ties, and personal circumstances to ensure full HMRC compliance. We offer tailored solutions, including split year treatment, non-domicile planning, and double taxation relief, helping you minimise unnecessary tax liabilities while staying compliant. Whether you are moving to the UK, leaving for an international assignment, or managing global investments, Zahtax Accountants gives you peace of mind that your residency status and tax obligations are correctly assessed and optimised. Trust us to deliver clear, practical advice so you can focus on your life and business without worrying about residency complications.
Our Approach
At Zahtax Accountants, our service goes far beyond simply counting the number of days you spend in the UK. We take a comprehensive, personalised approach to ensure your residency status is assessed correctly and your tax position is optimised.
Here is how we work with you:
- Thorough Fact-Finding – We gather full details of your work arrangements, travel patterns, family circumstances, and any other relevant information that could affect your UK residency status.
- Detailed Analysis – We carefully review your situation against each element of the Statutory Residence Test (SRT), including automatic UK/overseas tests and sufficient ties, to provide a clear and accurate assessment.
- Residency Report – We prepare a detailed report for your records, giving you a clear summary of your status and the rationale behind the conclusion.
- Planning Opportunities – Where appropriate, we highlight opportunities to manage your UK tax exposure more efficiently, such as adjusting travel plans, making use of split-year treatment, or claiming non-domicile status.
- Support & Representation – If HMRC raises questions or initiates an enquiry, we can represent you, provide supporting documentation, and ensure your position is robustly defended.
Why Choose Zahtax Accountants
Choosing the right accountant can make a significant difference to your financial and tax outcomes. At Zahtax Accountants, we pride ourselves on delivering a personalised, proactive service that goes beyond simply preparing tax returns. Here’s why clients trust us:
- Specialist Expertise – We focus on UK tax and advisory services, with particular expertise in residency issues, international tax, and HMRC compliance.
- Tailored Advice – We take time to understand your personal and business circumstances, providing advice that is specific to your situation rather than a one-size-fits-all approach.
- Clear Communication – Tax can be complex, but we explain everything in plain English so you can make confident decisions.
- Proactive Planning – We help you plan ahead, reducing your tax exposure legally and effectively while staying fully compliant with HMRC rules.
- Representation & Support – If HMRC raises questions or launches an enquiry, we represent you and handle communications on your behalf.
- Trusted by UK & International Clients – Whether you live in the UK or abroad, our team is experienced in managing cross-border tax matters and ensuring you meet your obligations.
- Client-Focused Service – We build long-term relationships with our clients, offering a responsive and approachable service that supports you year-round.
Frequently Asked Questions
What is the Statutory Residence Test (SRT)?
The SRT is the set of rules HMRC uses to determine whether an individual is UK tax resident for a particular tax year. It considers how many days you spend in the UK, where you work, where your home is located, and your personal ties to the UK.
How many days can I spend in the UK without becoming tax resident?
This depends on your circumstances and ties to the UK. For some individuals, spending fewer than 16 or 46 days may keep you non-resident, while others may be able to spend up to 182 days. The exact threshold is determined by the SRT rules and your personal situation.
What are “UK ties” under the SRT?
UK ties include factors such as having a UK home, having family (spouse/partner or children) in the UK, working in the UK, spending 90+ days in the UK in the previous two years, or the UK being the country where you spend the most days. The more ties you have, the fewer days you can spend in the UK without becoming resident.
What is Split Year Treatment?
Split Year Treatment allows your tax year to be split into a “UK part” and an “overseas part” if you move to or leave the UK partway through the year. This ensures you are only taxed as a UK resident for the relevant portion of the year.
Do I have to report my worldwide income if I am UK resident?
Yes, UK residents are generally taxed on their worldwide income. However, non-domiciled individuals may be able to claim the remittance basis, meaning they are taxed only on income and gains brought (or “remitted”) to the UK.
What happens if I get my residency status wrong?
Getting it wrong can result in overpaying tax or facing HMRC enquiries, penalties, and interest for underpaid tax. That’s why professional advice and accurate record-keeping (including day counts) are essential.