Applying for Certificate of Residence in the United Kingdom
A quick 101 from 3E Accounting on how to go about applying for Certificate of Residence in the UK.
The United Kingdom is a vibrant place to start a company or business. As the gateway to Europe, the UK offers excellent opportunities and incentives for the enterprising entrepreneur. One of these is the ability to claim tax relief by applying for Certificate of Residence in the UK. By doing so, companies, individuals, and organisations can avoid being double-taxed on foreign income.
Proof of UK Residence
Paying taxes on all foreign income in the UK generally allows you to claim tax relief from another country. In instances where tax has been paid, it may also be possible to apply for a refund. Generally, this is facilitated by a Certificate of Residence. It allows companies to benefit from the Double Tax Treaty (DTT) relief or to avoid withholding tax. Whether relief from foreign tax is granted or not will depend on the overseas tax authority.
While treaty provisions need to be checked, HMRC’s new online form, RES1, facilitates the application of a Certificate of Residence. Any entity or person classified as a resident of the UK is generally eligible provided a DTT exists with the country in question. The application can be made via email or online by the applicant or their agents.
The RES1 is applicable where proof of UK residency is required and can be used by:
- Limited Liability Partnerships (LLPs)
The form is available online at the HMRC website, and the following information must be submitted when making the application:
- The reason why the certificate is needed.
- The country that needs the certificate.
- The type of income and reason the certificate is needed for.
- The time frame is needed for, which has to be in the past.
You or your agent will also need to provide the registered address, company tax office information and Unique Tax Reference (UTR). Partnerships will need to add names, titles and address or residency status of all partners, including the managing partner. The DTT may also need confirmation that the applicant is the beneficiary of the claim. Further, the applicant must be subject to UK tax on the income being claimed.
Added information is required in instances where the company has not filed a Corporation Tax Self-Assessment yet. HMRC will need to be given the reason that substantiates the company’s belief as to its UK residency status. This is via the Statutory Residence Test (SRT) and includes clarifying the number of days spent in the UK. HMRC will also need to be informed of the particulars of each director and shareholder.
Depending on your type of business, application for the certificate may also vary. 3E Accounting offers specialised business solutions which include applying for Certificate of Residence in the UK. Our team of skilled professionals can assist in filling in the requisite forms and ease the application process. Contact 3E Accounting for an informative chat on the best way to meet the needs of your business.