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

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more

Value Added Tax

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more

Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more

��Ӱ��