Covid-19.. tax residency impact

As we know it has been a crazy year with the arrival of Covid-19. One area that has seen the pandemic impact is individual’s residency for tax purposes.

Clients that have normally enjoyed the tax treatment of being non resident have suddenly found themselves being confined to the United Kingdom, which may lead to an impact on their individual tax circumstances.

However, individuals are allowed to have up to 60 days in the UK under the “Exceptional Circumstances Rules” these rules can be applied as follows: –

  • The individual’s presence here in the UK is due to exceptional circumstances beyond their control. This would normally entail death of a close family member.
  • There must be no choice but to come back to the UK – in the case of Covid-19 this would mean when countries such as Germany closed their land borders and asked all non-nationals to leave.
  • Or if the Foreign Office advised against all but essential international travel.
  • You leave the UK again as soon as the circumstances permit.

Keeping proof is important, we currently advise any of our clients who enjoy the non-resident tax status and have been impacted by the result of the pandemic to keep evidence that they had to stay here in the UK and it was beyond their control. This evidence can be in the form of letters from their employers or contracting agencies.

HMRC of course take these on a case by case basis and with this in mind, there is a myriad of different scenarios.

If you need advice on any of the above points please contact Joanne Wilkinson on 01482 427360 or email

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