When working full-time overseas, I understand there is a requirement to fulfil an average of 35 hours a week and have no significant break from overseas work for 31 days. My question is: what happens if the 31 days span two tax years? For example, if one was to be made redundant on 6 March, the tax year would end before the ‘significant break’ period had ended. Assuming the 35 hours a week average was met for the entire tax year (i.e., even if recording 0 hours for the final four weeks because of redundancy) would the individual be UK resident or non-resident in such circumstances for that tax year? 

Arthur Weller replies:  

It appears to me that you are referring to the third automatic overseas test in the statutory residence test. If you look at HMRC’s Residence Domicile and Remittance Basis Manual at RDRM11140 (tinyurl.com/Hmrc-rdrm11140) in the example of Alex, it appears that HMRC only looks at the period until 5 April. You write: “For example, if one was to be made redundant on 6 March”, and you ask whether the individual would be UK resident or non-resident for that tax year. There are 31 days from 6 March until 5 April if one includes 6 March, but only 30 days if one does not include 6 March. So, whether the individual in these circumstances was UK resident or non-resident for the tax year in these circumstances would depend on whether they worked on 6 March and didn't work from 7 March onwards, or whether they worked until 5 March and didn't work from 6 March onwards.