A status determination statement (SDS) is a document that HMRC uses to determine the tax residency status of an individual or company. It is important to get your SDS right, as it can affect your tax liability. If you are unsure about your tax residency status, you should seek professional advice.
HMRC has a template that you can use to complete your SDS. The template is available on the HMRC website. You can also find guidance on how to complete the template on the HMRC website.
What is a status determination statement?
A status determination statement (SDS) is a document that HMRC uses to determine the tax residency status of an individual or company. It is important to get your SDS right, as it can affect your tax liability. If you are unsure about your tax residency status, you should seek professional advice.
The SDS is a self-assessment document. This means that you are responsible for providing accurate and complete information. HMRC will use the information you provide to determine your tax residency status. If you provide false or misleading information, you may be liable to penalties.
Who needs to complete a status determination statement?
You need to complete a status determination statement if you are:
- An individual who is not domiciled in the UK and is claiming the remittance basis of taxation
- A company that is not resident in the UK
- A trustee of a trust that is not resident in the UK
How do I complete a status determination statement?
You can complete a status determination statement online or by post. If you are completing the statement online, you will need to create a Government Gateway account. You can create an account on the HMRC website.
Once you have created an account, you can log in and start completing the statement. The statement is divided into sections. Each section covers a different aspect of your tax residency status. You will need to provide information about your domicile, your residence, and your income and gains.
What happens after I submit my status determination statement?
Once you have submitted your status determination statement, HMRC will review the information you have provided. HMRC will then make a decision about your tax residency status. HMRC will notify you of their decision in writing.
If you are not happy with HMRC’s decision, you can appeal. You have 30 days to appeal HMRC’s decision. You can appeal online or by post. The appeal process can be complex, so it is advisable to seek professional advice.
