UK Statutory Residence Test Guide
Complete guide to the SRT rules, automatic tests, and strategies for managing UK tax residence as a digital nomad
Official Sources
This guide is based on official HMRC guidance and UK legislation. Always consult with a UK-qualified tax advisor for your specific circumstances.
Introduction
The UK Statutory Residence Test (SRT) determines your UK tax residency status based on specific criteria including days spent in the UK, connections to the UK, and your circumstances. For digital nomads, understanding the SRT is crucial for legally minimizing UK tax obligations while traveling.
Unlike citizenship-based taxation (like the US), the UK taxes based on residency, meaning non-residents generally pay no UK tax on foreign income. This makes proper SRT planning extremely valuable for nomads.
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How the SRT Works
The SRT works through a three-step process that determines your residence status for each tax year (April 6 to April 5):
Step 1: Automatic UK Test
If you meet any of these conditions, you are automatically UK resident regardless of other factors:
- You spend 183 days or more in the UK in the tax year
- Your only home is in the UK (home available for 91+ days, present for 30+ days)
- You work full-time in the UK (defined as 35+ hours per week)
- You die in the UK and were UK resident in either of the previous two tax years
Step 2: Automatic Overseas Test
If you meet any of these conditions, you are automatically non-UK resident:
- You spend fewer than 16 days in the UK
- You spend fewer than 46 days in the UK and were not UK resident in any of the previous 3 tax years
- You work full-time overseas and spend fewer than 91 days in the UK with no more than 30 workdays
- You die in a tax year, were not UK resident the previous year, and spend fewer than 46 days in the UK
Step 3: Sufficient Ties Test
If neither automatic test applies, your residence depends on UK days combined with UK ties:
| UK Days | If Previously Resident | If Not Previously Resident |
|---|---|---|
| 16-45 days | 4+ ties = resident | All 4 ties = resident |
| 46-90 days | 3+ ties = resident | 3+ ties = resident |
| 91-120 days | 2+ ties = resident | 2+ ties = resident |
| 121-182 days | 1+ ties = resident | 1+ ties = resident |
Understanding UK Ties
UK ties are connections that demonstrate your continuing relationship with the UK. Managing these ties is crucial for nomads seeking non-resident status.
1. Family Tie
You have this tie if:
- Your spouse/civil partner is UK resident (unless separated)
- Your minor children are UK resident and you see them regularly
Nomad Strategy: Ensure spouse also becomes non-resident or consider temporary separation status
2. Accommodation Tie
You have this tie if:
- You have a home in the UK available for 91+ days in the tax year
- You stay there for at least one night during the tax year
Nomad Strategy: Sell UK property or ensure you never stay there during the tax year
3. Work Tie
You have this tie if:
- You work in the UK for 40+ days in the tax year
- Each day with 3+ hours of work counts as a workday
Nomad Strategy: Avoid any UK client work or ensure visits are purely personal
4. 90-Day Tie
You have this tie if:
- You spent 90+ days in the UK in either of the previous two tax years
Nomad Strategy: This tie disappears after two consecutive tax years with <90 UK days
5. Country Tie (If Not Previously Resident)
You have this tie if:
- You spend more time in the UK than any other single country
Nomad Strategy: Ensure you spend more time in another single country than the UK
Digital Nomad Strategies
Day Counting Strategy
- Keep UK days under 16 for automatic overseas status
- If 16+ days, carefully manage ties
- Track arrival/departure days accurately
- Consider midnight-to-midnight rule
Ties Management
- Sever accommodation ties before leaving
- Avoid UK work completely
- Plan family arrangements carefully
- Build ties with new country of residence
Split-Year Treatment
- Claim split-year in departure year
- Ensure permanent move abroad
- Avoid frequent returns to UK
- Maintain overseas accommodation
Record Keeping
- Track days with entry/exit stamps
- Document accommodation arrangements
- Keep work/business travel separate
- Maintain family contact records
Common SRT Mistakes
1. Miscounting Days
UK days include arrival and departure days. Many nomads undercount by excluding travel days or using different counting methods.
2. Ignoring Ties in Low-Day Scenarios
Even with few UK days (16-45), having all the relevant ties can make you resident. Don't assume low days = non-resident.
3. Working While Visiting
Any work in the UK creates a work tie if you exceed 39 days. Even checking emails can constitute work for UK purposes.
4. Keeping UK Property
Maintaining a UK home available for your use creates an accommodation tie, even if rarely used. Consider selling or long-term letting.
Planning Examples
Example 1: Safe Non-Resident
Scenario: Digital nomad spending 10 days per year in UK visiting family
- UK Days: 10 days
- SRT Result: Automatic overseas test - Non-resident
- UK Tax: No UK tax on foreign income
- Strategy: Stay under 16 days for guaranteed non-residence
Example 2: Ties Management Required
Scenario: Nomad spending 60 days in UK, previously resident
- UK Days: 60 days
- Ties Needed for Residence: 3+ ties
- Strategy: Minimize ties - sell property, avoid work, ensure spouse non-resident
- Result: With 0-2 ties, remains non-resident
Example 3: High Risk Scenario
Scenario: Nomad with UK spouse and property, spending 100 days
- UK Days: 100 days
- Ties Present: Family tie, accommodation tie, 90-day tie
- SRT Result: UK resident (2+ ties with 91-120 days)
- Strategy: Reduce days below 91 or eliminate ties
Conclusion
The UK SRT provides clear rules for determining tax residence, making it possible for digital nomads to legally minimize UK tax obligations. Success requires careful planning of both UK days and UK ties.
The safest approach is to stay under 16 UK days per tax year for automatic overseas status. If you need more UK time, focus on minimizing ties and understanding exactly how many ties would trigger residence at your day count.
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