Expanding on the article ‘Are you resident in the UK?’, the sufficient ties test forms part of the Statutory Resident Test. The sufficient ties test is considered when determining UK tax residence status for a tax year (if you do not meet any of the Automatic Overseas tests or Automatic UK tests). In brief, the test essentially looks at whether you have ties which deem you to be a UK resident.
We recommend you read ‘Days spent in the UK’ before considering each tie, as the number of days you spend in the UK in a tax year dictates the number of UK ties that make you a UK resident.
This article addresses one test of connection – the work tie.
Do you have a work tie?
You have a work tie if you work more than 3 hours a day in the UK for at least 40 days (continuously or intermittently) in that year. It should be noted that working includes travelling time where paid for by the employer, and job related training.
What is counted as time spent working?
Apart from an average day carrying out your usual work duties, other time spent working includes:
- Instances where you employer instructs you to stay away from work e.g. whilst serving your notice
- Travelling time where the cost would have been treated as a deductible expense, including between countries
- Travelling time to the extent that you work during your journey
- Job-related training
- Being on-call or standby (depending on conditions of employment)
If you have a significant break from UK work (i.e. 31 days or more in which during none of those days you have worked more than 3 hours, or are on annual, sick or parenting leave), you will generally not qualify for full-time work in the UK. The same applies for overseas work.
Location of work
This is usually considered to be where you are actually working, rather than the location of the place of employment.
Any work done travelling to or from the UK counts as overseas work. If travelling to the UK, work generally begins when you disembark from chosen mode of transport; if travelling from the UK, work generally ceases when you board your chosen mode of transport.
It is important to keep a record which identifies the number of hours worked each day in the tax year.
To find out more about other UK ties, please click on the following links which will direct you to the relevant article.
We recommend you seek professional advice for an accurate assessment of your UK tax residency status for a particular tax year.