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What Is an SA109 Form?

Updated: Nov 15, 2023

The SA109 form, a crucial component of the UK's tax system, is specifically designed for individuals to declare their residence and domicile status. It plays a vital role for those whose tax situations transcend national borders. This form serves as a supplementary page to the Self Assessment tax return (SA100), and it is an integral part of ensuring that taxpayers meet their legal obligations in the UK while considering their international status​​​​.


What Is an Sa109 Form

Importance of SA109 Form

The HMRC SA109 form is a crucial document for non-UK residents who have taxable income in the United Kingdom. This form is used to report income and gains from sources in the UK for non-UK residents who are not subject to UK income tax. In this article, we will take a closer look at the SA109 form, including who needs to complete it, what information is required, and how to submit the form.


Who Needs to File the SA109 Form?

The SA109 form is particularly relevant for individuals who are non-UK residents but earn income from UK sources or have gains from assets within the UK. This scenario often arises for expatriates, individuals working in the UK temporarily, or those with investments or property in the UK. If you are not ordinarily resident or not domiciled in the UK, or if you are classified as a dual resident in both the UK and another country, the SA109 form becomes a necessary part of your tax filing process​​​​.


The relevance of the SA109 form extends to those who need to claim personal allowances as non-UK residents. The intricacies of tax laws can be complex, and the SA109 form helps to navigate these complexities by providing a structured way to declare various aspects of your residence and income status​​.


If you take into account yourself no longer being a UK resident, no longer domiciled in the UK, or a dual resident inside the UK and any other country, fill out the SA109 Non-residence form.


Non-UK residents who have taxable income or capital gains in the UK are required to complete the SA109 form. This applies to individuals who are not subject to UK income tax but have received income or gains from UK sources, such as rental income from UK property or capital gains from the sale of UK assets.


Broadly, you are resident in the UK case you spend a minimum of 1/2 of a tax 12 months right here, or often spend a minimum one quarter of a tax year here. Days of arrival in, and departure from, the UK are generally not noted but your stay will be counted. You can use SA109 notes to help with information on how to finish the Capital Gains Summary form.


Non-UK Residents Affected with the aid of Coronavirus (COVID-19) Travel Restrictions

Complete page RR1 and field 40 on page RR3 of SA109 if you’re a non-UK resident who obtained profits for employment responsibilities you carried out in the UK inside the 2019 to 2020 tax 12 months, and also you could not go away from the UK because you both:


· Followed authorities’ advice, or recommendation from a registered health expert to protect or self-isolate within the UK because of the coronavirus

· Were not able to leave the United Kingdom due to the fact worldwide borders had closed because of coronavirus – you have to be able to reveal that you did everything possible to depart the United Kingdom

· Information to encompass in box forty of SA109



Key Features and Recent Updates

The SA109 form, like many other tax documents, undergoes periodic updates to reflect changes in tax legislation and administrative requirements. As of the 2023-2024 tax year, the SA109 form and its accompanying notes have been updated and are available for use. Notably, one of the significant updates includes the inclusion of the ‘United Kingdom GBR' in the country or territory list for the tax years 2021 to 2022 and 2022 to 2023. This update indicates a more inclusive approach to the varying statuses of residents and non-residents in the UK​​​​.


In recent years, special considerations have been made for circumstances such as the COVID-19 pandemic. For instance, non-UK residents who received earnings for employment duties performed in the UK during the 2019-2020 tax year, and who couldn't leave the UK due to COVID-19, have specific instructions to complete certain sections of the SA109 form. These instructions were aimed at addressing the unique challenges posed by the pandemic, reflecting the form's flexibility in adapting to unforeseen global events​​.


Do I Need to Fill Out an SA109 Form?


You will need to fill out an SA109 in case you are


1. A non-UK resident

2. Not frequently resident or no longer domiciled within the UK

3. Classed as a dual resident inside the UK and some other united states of America


Or if you are a UK resident and:

· Are eligible for remote places workday alleviation

· Became a United Kingdom resident during this tax yr

· Are due cut up yr remedy

· Have a domicile outside the UK

· Have overseas profits or capital profits and need to apply the remittance basis for the 2018 to 2019 tax 12 months


If you’re unsure about your residency repute, you’re commonly classified as a UK resident if:

1. The range of days you’re based totally inside the UK within the given tax yr exceeds 183.

2. You have only one home and it’s placed in the UK–it needs to have been owned, rented, or lived in for over ninety-one days, and you must have spent no less than 30 days there.


What Information Is Required On The SA109 Form?


The SA109 form requires non-UK residents to provide detailed information about their UK income and gains. This includes the type of income received, the amount received, and any deductions that can be claimed against the income.


The form also requires information about the taxpayer's residency status and the period of time they spent in the UK during the tax year. Non-UK residents who spend fewer than 183 days in the UK during the tax year may be eligible for tax relief under the double tax treaty between the UK and their home country.


If you are unsure about what information is required on the SA109 form, it is recommended to seek the advice of a tax professional who is familiar with UK tax laws and regulations.


Completing the SA109 Form for Tax Year 2023 - 2024


Overview of the SA109 Form

The SA109 form is an essential part of the self-assessment tax return for non-residents or those not domiciled in the UK but with financial ties to it. It enables these individuals to claim UK personal allowances and, for those resident but not domiciled in the UK, to pay tax only on overseas earnings brought into the UK. This form caters to various scenarios, including those affected by unique circumstances like COVID-19 travel restrictions​​​​.


Key Sections of the SA109 Form

  • Page RR1 and Box 40 on Page RR3: These sections are particularly important for non-UK residents who performed employment duties in the UK but could not leave due to COVID-19. The form requires details like the number of days spent in the UK due to COVID-19, earnings for work done in the UK during this period, and confirmation that these earnings have been taxed in your home state. It's crucial to ensure that these earnings are not reported elsewhere on the tax return to avoid them being treated as UK taxable earnings​​.

  • Claiming Personal Allowances: Non-UK residents can use the SA109 form to claim personal allowances. This is particularly relevant for those with UK income sources but residing outside the UK.


How to Fill Different Sections of the SA109 Form


Section 1: Residence Status

  1. Box 1: If not resident in the UK for 2022-23, place an 'X' here.

  2. Box 2: Eligible for overseas workday relief? Mark 'X'.

  3. Box 3: If split year treatment applies, mark 'X'.

  4. Box 3.1: If multiple cases of split year treatment apply, mark 'X'.

  5. Box 4: Resident in the UK for 2021-22? Mark 'X'.

  6. Box 5: If foreign earnings are for an earlier year, mark 'X'.

  7. Box 6: Enter the date UK part of the year begins or ends (DD MM YYYY).

  8. Box 7: Meet the third automatic overseas test? Mark 'X'.


Section 2: Personal Allowances for Non-Residents and Dual Residents

  1. Box 15: Entitled to claim personal allowances as a non-resident due to a Double Taxation Agreement? Mark 'X'.

  2. Box 16: Claiming personal allowances as a non-resident on another basis or as a dual resident remittance basis user? Mark 'X'.

  3. Box 17: Enter the codes for the country or countries of which you are a national and/or resident.


Section 3: Residence in Other Countries

  1. Box 18: Enter the codes for countries other than the UK where you were a tax resident in 2022-23.

  2. Box 19: If also resident in the aforementioned countries for 2021-22, enter the appropriate codes.

  3. Box 20: Enter the amount of Double Taxation Agreement income for which partial relief is claimed (in £).

  4. Box 21: Claiming relief under Double Taxation Agreements? Enter the amount claimed due to residence in another country (in £).

  5. Box 22: Claiming relief due to other provisions of Double Taxation Agreements? Enter the amount (in £).


Section 4: Domicile

  1. Box 23: Domiciled outside the UK and it's relevant to your tax liability? Mark 'X' and explain in box 40.

  2. Box 23.1: Deemed UK domicile under Condition A? Mark 'X'.

  3. Box 24: First year you've declared domicile outside the UK? Mark 'X'.

  4. Box 25: Domicile of origin in the UK changed? Enter the date of change (DD MM YYYY).

  5. Box 26: Born in the UK but never domiciled here? Mark 'X'.

  6. Box 27: Born outside the UK and domiciled here? Enter the date you first came to live in the UK (DD MM YYYY).


Section 5: Remittance Basis

  1. Box 28: Claiming remittance basis for 2022-23? Mark 'X'.

  2. Box 29: Unremitted income and capital gains less than £2000? Mark 'X'.

  3. Box 30: Deemed UK domicile and remitted foreign income/gains? Mark 'X' and provide details in box 40.

  4. Box 31: UK resident for 2022-23 and 12+ of the preceding 14 tax years? Mark 'X'.

  5. Box 32: UK resident for 2022-23 and 7+ of the preceding 9 tax years? Mark 'X'.


Section 6: Any Other Information

  1. Box 40: Provide any additional information required for boxes mentioned above or other relevant details.

Note:

  • Ensure accuracy in reporting dates, numbers, and codes.

  • Consult HMRC guidance or a tax professional for complex scenarios or uncertainties.


How to Submit the SA109 Form?


How to Submit the SA109 Form?


Submission Process

One key aspect of the SA109 form is its submission process. Typically, taxpayers are required to send the completed SA109 form by post. This is especially relevant for those who have moved abroad, like someone who has recently become a resident in Spain, for example. The process of submitting the SA109 form is a crucial step in ensuring that your tax affairs are in order, and it plays a significant role in the calculation of your tax liabilities or potential refunds for the relevant tax year​​.


Non-UK residents can submit the SA109 form online using the HMRC's online services. Before submitting the form, you will need to register for an online account with HMRC.


To complete the form online, you will need to provide information about your UK income and gains, as well as your residency status and the period of time you spent in the UK during the tax year. You will also need to provide any relevant documentation, such as bank statements or receipts, to support your claims.


Once you have completed the form online, you will be able to submit it to HMRC electronically. It is important to ensure that all information provided is accurate and complete before submitting the form, as errors or omissions can result in delays or penalties.


If you prefer not to submit the form online, you can also complete and submit a paper form by mail. The form can be downloaded from the HMRC website and must be sent to the appropriate address, as indicated on the form.


For the tax year 2023-2024, non-residents must be aware of the submission deadlines for their tax returns, which include the SA109 form. If you are filing by paper, the deadline is typically 31 October of the following year. However, for those submitting electronically through commercial software or via an accountant, the deadline extends to 31 January. This distinction in deadlines is crucial to avoid penalties​​.


Practical Tips for Completing the SA109 Form

  1. Gather Necessary Information: Before starting the SA109 form, ensure you have all the necessary information regarding your residency status, income sources, and days spent in the UK, especially under special circumstances like COVID-19 travel restrictions.

  2. Refer to HMRC Guidance: It's advisable to refer to HMRC guidance for detailed instructions and country codes that need to be entered into the SA109 form. This guidance is crucial for accurately completing the form and ensuring compliance with UK tax laws​​.

  3. Consider Utilizing Online Tools: Platforms like untied offer integrated tools to assist in completing and submitting the SA109 form. These tools can simplify the process, especially for those unfamiliar with UK tax forms.

  4. Seek Professional Advice: If you're unsure about any aspect of the SA109 form, it's wise to consult a tax professional. This is especially important for complex scenarios, like dual residency or remittance basis taxpayers.



Minimizing Tax Liabilities


Non-residents can explore several strategies to reduce their UK tax liabilities:

  • Asset Structuring: Holding UK immovable assets, like property, in joint names with a spouse or partner can help in tax mitigation.

  • Offshore Banking: Transferring cash assets to offshore accounts can prevent interest earned from being subject to UK tax while residing overseas.

  • Pension Consolidation: Transferring UK occupational pension schemes or Personal Pension Plans to a Qualifying Recognized Overseas Pension Scheme.

  • Claiming Tax Refunds: If employed in the UK before relocating, you might be eligible for an income tax refund, particularly if you haven't fully utilized your personal tax allowance.

  • Registering under the Non-Resident Landlord Scheme: If letting out property in the UK, this scheme allows you to receive rental income without tax deductions.


Tax Implications and Scenarios for SA109 Form Users (2023 - 2024)


Understanding Tax Implications for Non-Residents

For non-residents, the SA109 form is pivotal in determining the correct tax treatment of UK income. Non-residents are taxed only on their UK income, exempting their foreign income from UK taxation. This distinction is critical in ensuring the correct taxation level and avoiding unnecessary tax liabilities on global income. Individuals who are residents but have a domicile abroad also fall under special tax rules, which can impact the way their worldwide income is taxed​​.


Determining Residency Status

Determining one's residency status is a fundamental step before completing the SA109 form. The UK residency status depends on several factors, including the number of days spent in the UK during the tax year, which runs from 6 April to 5 April the following year. To be considered a UK resident, one must meet one or more of the automatic UK tests or the sufficient ties test and not meet any of the automatic overseas tests​​.


Automatic UK tests include:

  • Spending 183 or more days in the UK in the tax year.

  • Having only one home, which is in the UK for at least 91 days and staying in it for a minimum of 30 days during the tax year.

  • Working full-time in the UK for any period of 365 days, with at least one day of that period in the tax year.

Non-resident status usually applies if:

  • You spent fewer than 16 days in the UK (or 46 days if not a UK resident for the previous 3 tax years).

  • You worked full-time abroad (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working​​.


Split-Year Treatment

An important consideration for those moving in or out of the UK is the 'split-year treatment'. This means the tax year is divided into a non-resident part and a resident part, based on the time spent living in the UK. However, this treatment does not apply if you live abroad for less than a full tax year before returning to the UK, and other conditions must be met for eligibility​​.


Practicalities of SA109 Submission

Completing the SA109 form can be done on paper or using software like untied, which simplifies the process. The SA109 form allows for the declaration of UK personal allowances for non-residents and helps residents who are not domiciled in the UK to pay tax only on overseas earnings brought to the UK. It's essential to ensure that all relevant information is accurately reported to avoid discrepancies in tax liabilities​​​​.


Utilizing Available Resources

The UK government provides various helpsheets and guides to assist taxpayers in understanding the remittance basis of taxation, claiming relief on dual residency, and understanding tax rules for non-resident entertainers and sportspersons. These resources are invaluable for ensuring compliance and optimizing tax positions​​.


Conclusion

The SA109 form is an important document for non-UK residents who have taxable income or gains from UK sources. It is crucial to ensure that the form is completed accurately and submitted on time to avoid any penalties or delays.


In conclusion, understanding the nuances of the SA109 form and its implications is crucial for non-residents, dual residents, and those using the remittance basis in the UK. Accurate completion of this form is essential for ensuring the correct tax treatment, optimizing tax liabilities, and staying compliant with UK tax laws.


If you are a non-UK resident and require assistance with completing the SA109 form, it is recommended to seek the advice of a tax professional who is familiar with UK tax laws and regulations. They can provide guidance and support to ensure that you meet all of the necessary requirements and submit the form in a timely and accurate manner.



How a Tax Accountant Can Help You With SA109 Form in the UK

Navigating the complexities of tax obligations in the UK, especially for non-residents or dual residents, can be a daunting task. This is where a tax accountant becomes an invaluable resource, particularly in handling the SA109 form, a key document for those with unique tax situations transcending national borders.

Understanding and Navigating the Form

A tax accountant offers deep understanding and expertise in the nuances of the SA109 form. They can guide you through each section, ensuring that all necessary information is accurately and comprehensively filled out. For instance, they can assist in detailing your residence and domicile status, which is essential in the UK tax system for non-residents or dual residents. Their expertise is crucial in interpreting complex tax laws and understanding how they apply to your specific situation.

Tailoring Advice to Your Unique Situation

Every individual's tax situation is unique, especially when it involves international elements. A tax accountant can provide personalized advice based on your specific circumstances, whether you're a non-UK resident with assets or income sources in the UK, a dual resident, or someone navigating the remittance basis of taxation. They can help determine your residency status, which is pivotal in the UK tax system, and advise on the implications of your domicile status on your global income.

Claiming Allowances and Reliefs

Tax accountants can assist in claiming personal allowances and reliefs that you may be entitled to as a non-resident. They can help identify if you're eligible for overseas workday relief, split-year treatment, or tax reliefs under Double Taxation Agreements. Their knowledge ensures that you can optimize your tax position and not miss out on any potential benefits.

Dealing with Special Circumstances

Special circumstances such as the impact of COVID-19 travel restrictions on tax obligations can be complex to navigate. A tax accountant can provide guidance on how to report earnings affected by such circumstances on the SA109 form, ensuring compliance and preventing potential issues with HMRC.

Submission and Deadlines

Tax accountants are well-versed in the submission processes and deadlines of the SA109 form. They can ensure timely and correct submission, whether electronically or through paper-based methods. This helps in avoiding penalties associated with late or incorrect filings.

Minimizing Tax Liabilities

Strategizing to minimize tax liabilities is a key area where tax accountants excel. They can suggest effective methods like asset structuring, offshore banking, pension consolidation, and registering under schemes like the Non-Resident Landlord Scheme. These strategies can significantly reduce your tax burden while staying compliant with tax laws.

Keeping Up with Legislation

Tax laws and requirements can change frequently. A tax accountant keeps up-to-date with the latest changes in legislation, ensuring that your tax filings reflect current laws. This is particularly important for ensuring that your form is compliant with the latest tax year requirements.

Providing Representation and Support

In case of queries or disputes with HMRC, a tax accountant can act as your representative, providing the necessary support and expertise to handle the situation. This can include correspondence with HMRC, providing additional documentation, and defending your tax position.

Error Checking and Amendment Support

Tax accountants can review your previous SA109 submissions to check for errors or omissions. If mistakes are found, they can assist in the process of amending the form, which can be critical in preventing fines and ensuring that your tax records are accurate.

Comprehensive Tax Planning

Beyond the SA109 form, tax accountants can offer comprehensive tax planning advice, considering your broader financial situation. This includes planning for future tax years, advising on how changes in your circumstances might affect your tax obligations, and offering strategies to manage your overall tax burden effectively.

In conclusion, a tax accountant plays a crucial role in navigating the complexities of the SA109 form and the wider UK tax system, especially for those with international tax considerations. Their expertise, personalized advice, and strategic planning can ensure compliance, minimize liabilities, and optimize your tax position.


Most Important FAQs about A109 Form


20 Most Important FAQs about A109 Form


  • Q: Can I file the SA109 form electronically?

  • A: Yes, non-UK residents can file the SA109 form electronically using HMRC's online services after registering for an online account with HMRC.


  • Q: What is the deadline for submitting the SA109 form?

  • A: The deadline for submitting the SA109 form is typically 31 October for paper submissions and extends to 31 January for electronic submissions through commercial software or via an accountant.


  • Q: Is the SA109 form required for non-residents with no UK income?

  • A: No, the SA109 form is specifically for non-residents who have UK income or capital gains.


  • Q: What should I do if I am unsure about how to fill out the SA109 form?

  • A: It's advisable to consult a tax professional, especially for complex scenarios like dual residency or remittance basis taxpayers.


  • Q: Are there any penalties for late submission of the SA109 form?

  • A: Yes, late submission of the SA109 form can result in penalties and delays.


  • Q: Can I claim UK personal allowances as a non-resident?

  • A: Yes, non-UK residents can claim UK personal allowances using the SA109 form.


  • Q: How do I determine if I am a UK resident for tax purposes?

  • A: UK residency for tax purposes is determined by the number of days spent in the UK and other factors such as having a sole home in the UK or full-time work in the UK.


  • Q: What is split-year treatment in the context of the SA109 form?

  • A: Split-year treatment applies when you move in or out of the UK, dividing the tax year into resident and non-resident parts.


  • Q: How do I report income earned outside the UK?

  • A: Income earned outside the UK is not reported on the SA109 form unless you are using the remittance basis.


  • Q: What should I do if I have dual residency?

  • A: Dual residents should use the SA109 form to clarify their tax status and may need to consult tax treaties or professional advice.


  • Q: How do I claim tax relief under Double Taxation Agreements?

  • A: You can claim tax relief under Double Taxation Agreements on the SA109 form by providing relevant details of income and taxes paid in other countries.


  • Q: Can I submit the SA109 form if I have already left the UK?

  • A: Yes, former UK residents who have left the UK can still submit the SA109 form for the relevant tax year.


  • Q: How does the SA109 form affect my UK tax liabilities?

  • A: The SA109 form determines the extent of your UK tax liabilities by clarifying your residency status and the source of your income.


  • Q: Do I need to submit the SA109 form every year?

  • A: Yes, if your circumstances requiring the SA109 form persist, it should be submitted annually.


  • Q: How do I report overseas assets on the SA109 form?

  • A: Overseas assets are not directly reported on the SA109 form unless they generate income taxable in the UK.


  • Q: What if I made a mistake on my submitted SA109 form?

  • A: If you made a mistake, you should amend the form as soon as possible to avoid potential penalties.


  • Q: Are there any exemptions for submitting the SA109 form?

  • A: Exemptions may apply based on the amount of income, residency status, and other specific circumstances.


  • Q: Can I use the SA109 form to declare foreign income not taxed in the UK?

  • A: Yes, if you are using the remittance basis, you can declare foreign income not taxed in the UK on the SA109 form.


  • Q: How does the SA109 form affect non-resident landlords?

  • A: Non-resident landlords use the SA109 form to declare rental income earned from UK property.


  • Q: What documentation is needed to support the information on the SA109 form?

  • A: Supporting documentation may include bank statements, receipts, and records of days spent in the UK.

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