Residence and ordinary residence for social security purposes

Produced by

Employment Tax

Guidance

Residence for social security purposes

Residence is a concept that has always been interpreted differently for tax and NIC purposes. This is even more so since the introduction of the statutory residence test (SRT) for tax which was introduced in FA 2013, Sch 45 for the tax years 2013/14 onwards.

Residence for social security (NIC) purposes is not defined in legislation, but the dictionary definition states that it is “the act or duration of dwelling in a place”. There does not need to be any permanence in the arrangement and the place of residence can change on a regular basis. What is abundantly clear is that residence for tax and social security purposes can be significantly different. For the purpose of the EU social security regulations, residence means habitual residence which is where an individual will have their strongest personal ties. The word ‘stay’ in the EU provisions is closer to residence.

For a UK NIC liability to arise, there must be employed earners employment in the

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more

Trusts and Inheritance Tax

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

14 Jul 2020 12:52 | Produced by Tolley Read more

Value Added Tax

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more

UU��ֱ��