Travel restrictions may have unexpected tax consequences due to COVID19
As a result of the travel restrictions imposed by the COVID-19 pandemic, many employees have switched to remote working. This has resulted in many workers who are normally internationally mobile unexpectedly spending more time in the UK.
The number of days an individual spends in the UK is an important factor determining their residence status under the Statutory Residence Test (SRT).
However, certain unforeseen days spent in the UK, which are beyond an individual’s control, can be considered ‘exceptional’ and disregarded under certain parts of the SRT. The limit on the number of days which can be disregarded is 60 per tax year.
In relation to COVID-19 - HMRC have confirmed that they consider the following circumstances to be exceptional:
- Being quarantined or required to self-isolate in the UK;
- Being advised by official Government advice not to travel from the UK;
- Being unable to leave the UK due to the closure of international borders; or
- Being asked by an employer to return to the UK temporarily as a result of the virus.
You may be required to provide evidence of the above to HMRC and must have made every effort to leave the UK once the relevant restrictions have been lifted.
If you would like to discuss how these rules may impact you - please get in touch with Emma or Nicola at CKLG Accountants.
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