Call for Assistance: 02033 259 341
Spondoo Accounting
Call for Assistance: 02033 259 341
Spondoo Accounting

Split Year Treatment Explained- do I need to report Non-UK Income During Partial Residency

February 3, 2024

If you’ve recently relocated to the United Kingdom or departed the country midway through a tax year, and you qualify as a UK tax resident under the Statutory Residence Test, then you may be eligible to apply for the Split Year Treatment. This unique tax provision allows individuals to categorise a portion of the tax year as overseas/non-resident and the remaining part as a UK resident.

Understanding Split Year Treatment:

The concept of Split Year Treatment is a beneficial tax strategy for taxpayers undergoing transitions in their residency status within a tax year. By utilising this approach, individuals can streamline their tax obligations and ensure that they only report and pay taxes on the income relevant to the UK portion of the year.

Clarifying Income Reporting:

When opting for Split Year Treatment, it is essential to note that individuals are only obligated to report income associated with the UK-resident portion of the year. This means that non-UK income earned during the non-resident part of the year does not need to be included in the tax reporting process for the United Kingdom. Instead, only the income generated during the UK-resident period is subject to UK taxation.

Navigating the Statutory Residence Test:

To qualify for Split Year Treatment, individuals must satisfy the criteria outlined in the Statutory Residence Test. This test considers factors such as the number of days spent in the UK, connections to the country, and other relevant circumstances. Meeting these criteria establishes one’s eligibility to claim Split Year Treatment and determines the tax obligations for the respective periods of residency.

For expatriate tax experts, please get in touch today.

more tips

Can You Claim Food as a Business Expense?

The golden rule when claiming business expenses is that the cost must be “wholly and exclusively” for business purposes. So, where do you stand when it comes to food and drink? After all, everyone needs these things to survive. When does it become an allowable expense? Read on to find out when your business can claim food and drink as an expense.
READ MORE

Self-Employed National Insurance Class 2 and Class 4 Rates

If you are sixteen and over, self-employed (sole trader or in a partnership) and making a profit befitting the ‘small profits threshold’, you are liable to pay national insurance.
READ MORE

Key UK Personal Tax Year Dates & Deadlines 2021/2022

Are deadlines creeping up on you? Spondoo is here to ensure you keep on top of things and take control again. These are the important dates you should take note of.
READ MORE

How To Set Up A Limited Company 

A Step-by-Step Guide  This is an easy-to-understand, step-by-step guide, to opening a successful limited company. But before we dive in, let’s check the legality surrounding it. 
READ MORE

Accountants in Haslemere, Surrey

We are qualified accountants providing personal and professional services for start-ups, established companies and individuals in and around the Halsemere area in Surrey. With the rise in technology, we have embraced the digitisation of accounting using efficient digital accounting tools to offer reliable services to our customers. Our goal remains to get our clients the best accounting and taxation services at the most affordable rates.
READ MORE

Onsite Canteen and Lunch Vouchers - Are They Taxable?

The provision of food and drink to an employee by their employer is a lovely thing to do. Eventually, it promotes teamwork, loyalty, a sense of belonging and even improves productivity. Taking it at face value makes it look like a simple act of kindness. However, unless it is done correctly, it can cause tax and national insurance compliance issues for the employer.
READ MORE
1 2 3 38
LEARN MORE
Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
© Copyright 2023 - Spondoo - All Rights Reserved
How, can we help?
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram