Thread: Habitually or Non-habitually Resident - UK

Is this with reference to social assistance; If so where were you a resident in the UK?

Gotta be a reference to UK income tax forms. I can't work it out myself, wish they'd write the forms in English.

Just found this:

Essentially, an expatriate's tax status will fall into one of five categories:-
1) Resident: Based upon the amount of time spent in the UK on an annual basis. If an individual spends 183 or more days in the UK in any one tax year he or she will be classified as resident and will pay UK tax as a normal resident.
2) Ordinarily Resident: This is a longer-term concept where the Inland Revenue will take a view over three to four years on where an expatriate habitually resides. If an expatriate is habitually resident in the UK for 90 or more days in any one tax year then the category is ordinarily resident and such status impacts upon tax liabilities accordingly.
3) Not ordinarily resident: This category applies to an expatriate who works overseas and whose intention is to work and reside overseas and who will not be spending 90 or more days back in the UK. If the intention to remain overseas can be proved before leaving then the expatriate earns this status from the day of leaving the UK along with the accompanying tax breaks.
4) Not resident: A definite and sought after status applied to an expatriate who conforms to the rules of working and living overseas and not returning to the UK for any period of time which could throw doubt on that intention, Not resident means not liable to pay tax on income or capital gains, provided these are as offshore as the expatriate.
5) Domicile: Any UK citizen, wherever based, remains UK domiciled unless permanently emigrating through official channels. Essentially, your domicile is linked to the country where your roots are and this status clings to you for life, catching up on your death when inheritance tax is due.

Can anyone tell me what the difference between 3 and 4 is?

3 is for an expat who works abroad but comes back home for his breaks, and intends to settle back home in the UK

4 is for an expat who decides to be resident in another country, so does not see the Uk as his home any more

Originally Posted by Bubba

I've been out of the UK, except for short family visits back, since 2003. I have changed job three times and the contracts for these jobs have been temporary / fixed-term contracts.

Well, I had some problems with this when I came back. It seems that if you can prove you are employed on a temporary contract and that the reason you are abroad is because of work then you can be counted as resident in the UK. I had some problem proving this with work contracts, but in the end the fact that my visa (permission to stay) was extended each year was enough to show that it was temporary.

^ not for income support or tax or anthing like that, but for child adoption. If I am non-habitually resident in the UK then the whole process is a lot easier. My jobs have all been temporary, but have wife, family and land over here and not in the UK, so looks like I should be able to make the case.

if you don't live in the UK, then you don't have to pay tax

it is all self-assessment now anyway

Originally Posted by DrAndy

if you don't live in the UK, then you don't have to pay tax

WRONG FACT!

Double taxation treaties.

UK has one with Korea and should have one with Thailand now. That was meant to go ahead in 2008. So if you work in Thailand and don't pay tax you are meant to pay it to the UK instead.

Originally Posted by mrsquirrel

UK has one with Korea and should have one with Thailand now. That was meant to go ahead in 2008. So if you work in Thailand and don't pay tax you are meant to pay it to the UK instead.

The UK and Thailand have a had a tax treaty for a while. This is how you can get a tax ID in Thailand even though you might not officially work here.

^ I read that the double taxation thing only came in last year. October 2008.

^ Right Fact!

hooray!

Originally Posted by mrsquirrel

I read that the double taxation thing only came in last year. October 2008.

I got a Thai tax ID about a year before that due to being able to earn in the UK but wanting to be taxed here due to living here.

Originally Posted by Bubba

Anyone here know of any links I can look at, or give me any information on how I can find out if I am legally considered habitually or non-habitually resident in the UK

I've been out of the UK, except for short family visits back, since 2003. I have changed job three times and the contracts for these jobs have been temporary / fixed-term contracts.

Any help or pointers appreciated.

Habitual residence residence is a concept under the Hague Convention on adoption. Nowhere is there a definition I think.

Did you find anything on how to discover if you are HR or not HR?

I'm keen to know,

Andrew Hicks

PS This thread got sidelined on tax!

Tax in the Uk is all by self assessment nowadays

so you can decide what you are for tax purposes

Habitual residency is a cnut, there are no set period of time for it, took me 2-3 months before i was declared habitually resident but i appealed against all their dumb ass rulings and won every one of them, and eventually took a judge at a tribunal to say i should have been declared habitually resident a few days after i returned due to my daughter having started school, so the twats then had to back date all my benefits, that they refused to pay me due to them not classing me as habitually resident.

Basically if they say you are not habitually resident, you ain't entitled to jack shit.

My OP and I were asking about ADOPTION and not about tax or benefits.

Lots of useful info on tax but nothing on adoption... like when you get given a baby and have lots of sleepless nights and so on.

Thanks anyway.

Andrew