RFIG20160 - Statutory Residence Test (SRT): Automatic overseas tests: Gaps between employments
Source: gov.uk (2025-04-04)


When calculating the reference period (Step 3 RFIG20170 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig20170)), certain gaps between employments are allowed. These are:
- if there is a change of employment during the tax year or relevant period
- if there is a gap between the individual's employments
- no work is carried out by the individual at any time between the 2 employments
The number of days in that gap can be subtracted from the reference period. However, this is restricted to a maximum of 15 days for any single gap between employments or if there have been more than 2 employment periods a maximum of 30 days.

The provisions for gaps between employments do not apply if the individual is self-employed; no deductions can be made from the relevant period for gaps between periods of self-employment.

If rather than a complete tax year the reference period is a part year, for example in the case of split year, the maximum number of days is reduced from 30 on a pro-rata basis. (Refer to RFIG21080 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig21080) and RFIG21280 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig21280)).

If the gap spans the end of a tax year, it is only necessary to subtract from the reference period that part of the gap that falls within the relevant tax year. So, for example the gap starts on 29 March 2016 and finishes on 10 April 2016, only 8 days fall in the relevant year 2015-2016.

Example 1

Jack is calculating his reference period and has 2 gaps between employments within the 365-day period he is considering.

The first gap was of 21 days and the second 5 days. Jack does not work at all in either gap. As the first gap exceeded the maximum number of days allowed for a single gap, Jack can only subtract 15 days from his reference period in relation to this gap between employments. He can subtract the full 5 days of the second gap.

Jack therefore subtracts a total of 20 days for gaps between employments from his 365 days period under Step 3 of the sufficient hours' calculation.

Example 2

MayLing is considering whether she meets the third automatic overseas test in respect of her work in Italy in the previous tax year. She worked for her first employer there for an average of 8 hours a day, 5 days per week, between 6 April and 23 August (20 weeks). During that period, she took 9 days annual leave, (there were no embedded non-working days); consequently, MayLing had worked for 18 full weeks and only 1 day in another week. She ceased that employment and took a break of 30 days to tour round Italy.

She then took up a new employment, again in Italy, between 23 September and 5 April (27 weeks and 6 days - amounting to 28 working weeks). During that period, she worked for 9 hours and 30 minutes from Monday to Thursday, and for 4 hours on a Friday. She took:
- 5 days of annual leave; for 3 weeks she only worked 3 long days and a short day, and for 1 week she worked 2 long days and a short day, thereby reducing her number of full working weeks by 4 weeks
- 10 days of annual leave, with 2 embedded non-working days, (the Saturday and Sunday in the middle of this 2-week period), reducing her number of full working weeks by 2
- 5 days continuous sick leave, (with no embedded non-working days), reducing her number of full working weeks by 1
She therefore worked for only 21 full working weeks in this part of the year. MayLing spends no time in the UK in the tax year.

Step 1

MayLing has no disregarded days

Step 2

Net overseas hours

Employer 1: 18 weeks and 1 day at (5 days x 8 hours) = 728 hours

Employer 2: 21 weeks at ((4 days x 9.5 hours) + 4 hours) = 882 hours

3 weeks at ((3 days x 9.5 hours) + 4 hours) = 97.5 hours

1 week at ((2 days x 9.5 hours) + 4 hours) = 23 hours

Total net overseas hours: = 728 + 882 + 97.5 + 23 = 1730.5 hours

Step 3

Reference period:

subtract from 365 days

disregarded days 0 days

Other days that can be deducted:

9 days leave Employer 1

15 days leave Employer 2

2 embedded days

5 days sick = 9 + 15 + 2 + 5 = 31 days

Gaps between employments 15 days (total gap 30 days but the amount deducted is limited to 15 days)

Reference period is: 365-31-15 = 319 days

Step 4

Divide reference period by 7: = 319/7 = 45.57 (rounded down to 45)

Step 5

Divide net overseas hours by figure at Step 4

= 1730.5/45 = 38.45

MayLing meets the sufficient hours test. She will need to consider whether she meets all other parts of the third automatic test.