UK Taxation: Changes to Tax Residence calculations

Following on from the UK Chancellor's Budget in April 2008, HMRC have now issued the new guidelines in IR20.

The major change is to the "91-day rule" which was previously calculated on the basis of full days in the UK only - therefore date of entry and departure did not count towards the total.

Now the "midnight rule" has come into effect - and the calculation is now based on days where you were present at midnight. Therefore the date of entry is now counted, and the date of departure is not.

For more information, please see the full version of the new IR20 booklet on our Useful UK Taxation Forms section.

If you have any questions regarding this or any other tax issue, please contact us.