When people leave the UK, the focus is usually on day counting and managing UK ties, but one of the most overlooked risks sits in the third automatic UK test, being the the full-time UK work test.
The Statutory Residence Test is applied in strict order. If you do not meet an automatic overseas test, the automatic UK tests are considered next. The sufficient ties test is only relevant if none of the automatic tests apply. The sequencing matters!
Under the full-time UK work test, you are automatically UK resident if:
Crucially, the 365-day period does not need to align with the tax year. Only one qualifying day needs to fall within it to make you resident for the whole year.
As an example, an individual works full-time in the UK throughout 2025 and leaves permanently for Dubai in March 2026. They assume they will be non-UK resident from 6 April 2026 under the sufficient ties test. However, they return to the UK on 20 April 2026 for two days and work for more than three hours on each of those days. This probably means that in the 365-day period to 21 April 2026 they meet the full-time UK work test, in which case they will be automatically UK resident for the 2026/27 tax year.
This is an easy trap to fall into, but there is one definite get out. The 365-day period cannot include a “significant break” – broadly 31 or more consecutive days with no UK work. So ensuring at least 31 straight days without performing any UK work after departure can break the continuity and prevent the test from applying. As proving you were not working may be difficult, the safest route is not to be in the UK at all for the period between 6 April and 6 May.
When leaving the UK, it is not enough to manage days and ties. You have to work through all the tests in the Statutory Residence Test and in particular consider whether a rolling 365-day UK work period straddles your departure. Sometimes the most important advice is simple - once you relocate, do not go back to the UK between 6 April and 6 May.
Relocating from the UK involves far more than just "counting days"; it requires an understanding of the Statutory Residence Test’s sequencing. At Sanctuary, we specialise in cross-border tax residency, helping clients transition smoothly to jurisdictions like the UAE without falling into HMRC’s automatic residency traps. Our advisory team can review your 365-day working patterns, advise on "significant breaks," and ensure your departure is robust enough to withstand scrutiny. We provide the peace of mind that comes from knowing your non-resident status is protected by expert analysis.
Visit our Tax & Advisory service page to learn more about our tax & residency advisory, or contact us for a bespoke consultation via the contact form or email us at: hello@sanctuary.ae.
For UK businesses considering opportunities in Saudi Arabia, the following steps outline the overall process:
1. Business Activity: Determine the appropriate business activity which will aligns with your business and satisfies all undertakings you will engage with in the Kingdom.
2. Local Partnerships: Consider any potential opportunities for collaborations with established local businesses to ease market entry and meet regulatory requirements.
3. Documentation: Gather the required documentation for incorporation in KSA.
4. Company Registration: Work with experts and the relevant governing bodies to assist with the incorporation process, ensuring compliance with local laws and regulations.
5. Other Requirements: Consider any other requirements for establishing in Saudi Arabia such as capital and tax requirements.
Saudi Arabia's Vision 2030 represents a significant opportunity for UK businesses to engage with an expanding market with vast potential. As the Kingdom continues to diversify its economy and expand its global influence, UK companies are well-positioned to support and benefit from this transformation. With the right strategy, partnerships, and local support, there are a wealth of possibilities.
By aligning your business with Saudi Arabia’s Vision 2030, the benefits for UK and international businesses looking to Saudi Arabia have never been greater.
At Sanctuary, we specialise in assisting businesses looking to expand into Saudi Arabia. We help navigate the complexities of the Saudi market, ensuring that you have the expertise needed to best prepare for success, so get in touch today.
Our expert team offers comprehensive support across a range of services, from company registration, advisory services, and more. Explore our services to discover how we can help you.
Vision 2030 is a strategic framework designed to diversify Saudi Arabia’s economy, reduce its dependency on oil, and transform the Kingdom into a global business hub.
Key points include economic diversification, social reforms, investment in technology and infrastructure, sustainability, and creating a competitive workforce.
The main focus of the Saudi Arabian Vision 2030 strategy is to build on key economic sectors such as hospitality, travel and tourism and build economic stability and sustainability.
Saudi Arabia’s Vision 2030 initiative is aimed at diversifying its economy through strategic investments into the non-oil sector and ensuring a more sustainable economic future.
Saudi Arabia has committed over $500 billion to Vision 2030, funding projects that span a variety of sectors, including energy, tourism, and infrastructure.
Yes, with its growing economy, reform initiatives, and investment incentives, Saudi Arabia is a highly attractive destination for foreign businesses seeking growth opportunities.
Key growing industries include renewable energy, tourism, healthcare, technology, and education.
Saudi Arabia permits foreign owned businesses and investment into the Kingdom, which has been elevated by the Vision 2030 initiative. A MISA licence is required for foreign investors or businesses to establish.
As a result of the diversification efforts of Saudi Vision 2030, the non-oil and private sector in the Kingdom have witnessed unprecedented growth in the past few years. The private sector continues to grow each quarter and the non-oil sectors continue to reach record contributions for the Kingdom’s GDP.
