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HMRC usually issues a certificate of UK tax residence on a case-by-case basis. To be classified as a UK resident, you must spend 183 or more days in the UK during a tax year. HMRC also allows your only home to be in the UK for 91 days or more in a row, and you stay in it for at least 30 days of the tax year. To have tax residence in the UK means you can avoid double taxation on income in other countries with tax treaties in place with the UK. A UK tax resident certificate can help you to pay less tax abroad. What are the basics of a tax resident in the UK? As a tax advisor who owns real estate property investments, I know that UK tax residence is complex and confusing. Many clients want to pay less tax in the UK, and having tax residence in the UK is one way to keep more money for yourself. You can apply for a certificate of UK tax residence through an online form provided by HMRC here. You can claim tax relief in another country if you pay tax on your foreign income in the UK and have a certificate of residence (CoR). You can apply if you are classed as a UK resident and have a double taxation agreement with the country concerned. The overseas authority dealing with your tax claim will ask HMRC to certify that you are a resident of the UK for tax purposes. A certificate of UK tax residence is useful for UK taxpayers claiming relief under a double tax treaty. A UK resident must provide evidence that they are a tax resident in the UK. For some countries, a taxpayer must complete a specific claim form issued by that country’s tax authority, which HMRC must endorse with a UK tax residence certificate. For other countries, it is sufficient to provide a certificate of residence letter which confirms that the taxpayer was a tax resident in the UK in a particular period. The form provides a way for a UK tax resident individual to prove to a foreign tax authority that they are a tax resident in the UK. The introduction by HMRC of a certificate of UK tax residence is an important development to help you pay less tax. I recommend that you ensure you have a UK tax resident certificate. Why pay more tax in the UK than you need to? If you are a UK taxpayer and earn income from overseas, you are required to abide by the tax laws of both countries. As a result, you could be double-taxed on your foreign income. To claim tax relief or exemption, you must prove to the foreign tax authorities that you are a UK resident for tax purposes. Having a certificate of UK tax residence ensures that you are not paying more tax than you need on your foreign income. What is a certificate of UK tax residence? A UK tax residency certificate allows you to claim tax relief overseas. After HMRC has verified that you are a UK resident for tax purposes, you will get a claim on your tax services in line with the double taxation agreement. HMRC will issue you with a UK tax residence certificate. You will then be entitled to treaty tax benefits. The overseas authority will decide whether relief from foreign taxes will be granted. Having a certificate of UK tax residence is critically important. What can I do to pay less tax in the UK? Should you allow HMRC or an overseas tax authority to take more money than they already do? Of course not. The danger is that you read this article and then do nothing about obtaining tax residence in the UK, or about gaining your certificate of UK tax residence. Do yourself a favour and book in time with one of my tax advisors to talk about a UK tax resident certificate. FAQs - Certificate Of UK Residency For Tax Purposes How do I get my UK tax residency certificate? The process of obtaining a tax residency certificate varies depending on the country or jurisdiction you are seeking it from. Here are some general steps you can take: Contact the tax authority of the country where you are a tax resident to determine the specific requirements for obtaining a tax residency certificate. Prepare and submit any required documentation, such as proof of identity, proof of address, and evidence of your tax status in the country. Some countries may require you to fill out an application form or provide additional information to support your application. After your application is processed, the tax authority will issue the tax residency certificate if you meet the requirements. Some countries may charge a fee for issuing the tax residency certificate. It's important to note that the process of obtaining a tax residency certificate can be complex, so it may be helpful to seek professional advice from a tax advisor or accountant. If you have any questions or need help call us today 0115 939 4606 (Outside UK +44). How long does it take to get a tax residence certificate UK? The processing time for a tax residency certificate in the UK can vary depending on various factors, such as the complexity of your case and the workload of the tax authority. However, in most cases, you can expect to receive your tax residency certificate within 4 to 8 weeks from the time your application is submitted. How do I get proof of tax residency UK? If you are a UK resident for tax purposes, you can request a proof of tax residency document from HM Revenue and Customs (HMRC) What evidence do I need to submit for certificate of tax residence? You will typically be required to include a copy of your passport or national identity document, along with proof of address such as utility bills or bank statements, to authenticate your residential address in the UK. Am I still a UK tax resident if I live abroad? The answer depends on your specific situation as the regulations regarding UK tax residency can be complex. How long is a certificate of UK tax residency valid for? A UK certificate of residence remains valid for 12 months starting from the date of issue. HM Revenue & Customs (HMRC) does not have the authority to certify residence for future periods. How do I check my tax residency status? HM Revenue & Customs provides a tool to assist individuals in assessing tax residence status which can be found at: https://www.tax.service.gov.uk/guidance/check-your-UK-residence-status/uk-home. It can help ascertain an individual’s residency status for tax matters. It is most suited for individuals with uncomplicated financial circumstances and includes evaluations such as the automatic overseas test, automatic UK tests, and the sufficient ties test. How do I know if I am a tax resident UK? You may be considered a UK tax resident if (i) you were in the UK for 183 days or more within the tax year. (ii) Your main residence was in the UK for 91 days or more in a row and you spent at least 30 days there in a tax year and (iii) you engaged in full-time employment in the UK for any period of 365 days with at least one day of that period within the tax year in question. However other conditions may also be applicable. It might not be as straightforward as it seems. Contact our team today if you are unsure.
