RFIG30420 - Residence for tax years before 2013-14: coming to the United Kingdom: non-employee - not resident and not ordinarily resident for the whole tax year

This chapter only applies to tax years up to and including 2012-2013. From 6 April 2013 the Statutory Residence Test (SRT) applies. For guidance on the SRT please see RFIG20000 onwards.

Use these guides if the individual is not resident and not ordinarily resident for the whole tax year of arrival and is working in the United Kingdom but not as an employee (for example self-employed or a ‘sub-contractor’).

Year of arrival guide A

  1. Is the tax year 2010-11 or later? If:
  2. Is the individual a resident of a country with which the UK has a double taxation agreement (refer to RFIG30570)? If:
    • no, refer to guide B
    • yes, go to step 3
  3. Is there a business profit or independence services article in the agreement which may exempt the income from UK tax (for example, article 8 of the UK/Republic of Ireland double taxation agreement DT9881)? If:
    • no, refer to guide B
    • yes, go to step 4
  4. Invite a claim and ask the individual for a statement from the overseas tax authority confirming the individual is a resident of that country for tax purposes for the period you are dealing with (Note: the individual does not have to be paying tax in the other country, just be a resident there). Check the conditions of the relevant article are satisfied (refer to DT2140PP onwards).
  5. Has the individual provided the statement of residence and are the article conditions satisfied? If:
    • no, refer to guide B
    • yes, give exemption from UK tax against the income. Refer to guide C for year after year of arrival.

If you have any doubts or difficulty – for instance, queries about trading in the UK or the existence of a permanent establishment – refer them to Business International (Non-residents trading in the UK).

Year of arrival guide B

  1. Is the tax year 2010-11 or later? If:
  2. Does the individual come within one of the categories in RFIG30540 or RFIG30550? If:
    • yes, full personal allowances are due against all income chargeable to UK tax for the whole of the tax year of arrival. Refer to guide C for the year after the year of arrival.
    • no, personal allowances are not due. The taxpayer should self assess their UK liability.

Year after year of arrival guide C

Is the individual still in the UK on 6 April of the year after the year of arrival? If:

  • yes, the taxpayer should continue to self assess their UK tax liability
  • no, issue form P85 (refer to RFIG30130)