Feature/OPED
Victor Alewo Adoji: Celebrating a Silent Philanthropist Extraordinaire at 50

By Adamu Bello
When great men celebrate, even the stars bow in solemn hallow. As Dr Victor Alewo Adoji (DVAA), the erudite banker-turned politician celebrates his 50th birthday on Saturday, May 29, 2021, the periscope is focused on a man who has given his all to create peace, tranquillity and progress for his people in Kogi State and Nigeria as a whole.
It is often said that some were born great, while others attained or achieved greatness. For Adoji, it is a combination of being born great and working hard to attain greatness.
As the former Kogi State governorship and Kogi East Senatorial District aspirants during the last 2019 general elections steps into the golden club, healthy, hearty, resolute and focused, it is never a dull moment for a man who has spent the greater part of his life to rendering selfless service to humanity.
Victor Alewo Adoji, simply known as DVAA by friends and well-wishers, is a rare gem and a household name across a garland of interests and places.
DVAA’s humanitarian gestures cannot be overemphasized as he has contributed immensely to the growth and development of the Igala Kingdom (Kogi State) in several areas especially around education, empowerment, health care delivery and physical development.
Even before his attainment of fame as a public figure, his humanitarian service started as a pro bono auxiliary teacher at CSCC, Anyigba for a long period of time.
A visit to the Ministry of Mercy orphanage in Otutulu, any of the doctors at Diagnostics and Reference Hospital Anyigba, the Ogugu Ofante Catholic Community, the bursary department of KSU or any members of Project Igala Education Committee will update you more than the little that I have mentioned of his humanitarian services to the orphans, widows and the less privileged.
Though he is not directly in any position to employ people in his service sector, he has influenced a number of people into a number of private firms and public parastatals through his contacts.
He singlehandedly built the main mosque and UEC Church in his village (Okula-Aloma). Added to this, he built a modern classroom block in the only primary school in Okula and in conjunction with other elites in the village established the secondary school in the village.
For over 12 years, he has been responsible for paying the salaries of all the teachers in his village. He is in the process of building an estate in the village under a 20-year mortgage scheme for people of his village-based in states around the country to own houses in the village.
He has sunk several boreholes in several villages and places including the Open University in Idah, the catholic orphanage in Anyigba and for the people of Ogene-Igah his maternal home.
The Zenith Bank branches in Anyigba and Ankpa and the cash office in Idah are all to his credit. This is aside from the numerous people whose employment he influenced and never mentions for professional and strategic reasons.
About three decades ago, as an undergraduate, he gained insight into his role as a citizen in the Greek mythological sense of the word. This influenced his commitment to service which culminated in his election as leader of the Students’ Union Government (SUG) of the University of Jos in 1993 and National Public Relations Officer of the Igala Students Association (ISA).
As a unionist, economist, banker, professional in politics, educator, resource person and others, he has been exposed to and responsible for an array of tropical and broad-spectrum developments in several areas.
Since the turn of the millennium, he has applied his experience as an independent consultant to provide support, advice and training to a variety of stakeholders in different roles, working in different institutional and cultural contexts, including the Igala region. Wherefore, he gained admiration for sociopolitical perspicacity, integrity, ethical behaviour, passion and commitment to his fellow citizens.
As a consensus builder, he demonstrated proficiency in securing high-impact collaborations, acting decisively to deliver successful outreaches; thereby gaining a track record of launching interventions related to business strategy and citizenship.
For such collaborations, he worked productively as an innovation catalyst, dexterous in structuring alliances across private, public, and not-for-profit sectors. This involved high-profile advocacy, best practice in selling public awareness initiatives, a keen understanding of sustainability issues and relationship-building.
He has been focused on empowerment and capacity building of young Igala people especially in the fields of education (where he has several indigent students on his scholarship) and the creative industry where he partners with an assortment of thespians on an ongoing, evolving and ad hoc basis.
Recently, in partnership with the Kamar Football Academy and Igala-Bassa Nations Cup, he sponsored the establishment of the Igala United Football Club with about 40 players and the entire coaching crew on his payroll.
His partnership with the cashew farmers association of Nigeria, Kogi East chapter, is another evolving goldmine that is set to particularly impact the economy of the eastern part of Kogi State and by extension, Kogi state and the country at large.
Being uniquely different from others in his silent style of humanitarianism, Dr Victor Alewo Adoji has been a source, a catalyst and instrumental to the growth and development of many groups, individuals and communities in Igala nation for over a decade.
He has been focused on the empowerment and capacity building of young Igala people to embark on further studies, particularly in Kogi East and Kogi State at large. Because he hates to have his humanitarian services mentioned in public, he used individuals and organizations to assist several less privileged people to pay school fees, hospital bills and provision of shelters in times of need.
An infrequently misunderstood fellow who balances neatly along with demographic and psychographic grids, you find emblematized in him a personality who has met milestones on the (same) road he took to avoid them. Either by discretion or disposition or both, Victor Adoji furtively but discernibly reckons that most of the greatest things in life revolve around knowing which bridge(s) to burn and which to cross and at what cost.
Highly impressionable, liberal and expressive, he is a man whose calmness even under pressure is rare and enormous. His numerous attributes align with sanctity, empathy and collectivism while his dexterity at balancing views, perceptions and affiliations justify and validate his huge appeal across relationships and interests. He duly fits an array of descriptions, meanings and phraseologies including, but not limited to, one with an excellent mind, an anchor and an enthusiast equipped with a disposition that avails a hybrid perspective (on issues) where/when necessary and imperative.
Often regarded as a patient but an excellent planner with high business acumen, he is intuitively analytical, intellectually sound, reasonably determined, highly efficient, appreciably trustworthy and hugely compassionate. Piety, reverence, attention to details and compassion without frontiers distinguish this noble gentleman who is obviously produced from the finest source-materials of Master Porter.
By training, Victor wears several hats but would rather be called an economist; a discipline he drifted into after a memorable event at Usman Danfodio University, Sokoto.
According to him, he sauntered into studying Economics as a first degree but appreciated it because of its numerate nature that is entrenched in the social sciences with a focus on people, society, allocation, preferences, human and social dynamics and interventions/decisions at all levels.
Adoji, a man of peace and a man of the people is married to one of the most unassuming of women and a wife who fits all classifications of “a virtuous woman”, exceptionally accommodating, unusually patient and highly considerate. Their marriage is blessed with two children.
His Educational Background
Victor Adoji was born on May 29, 1971, to the reverent family of late (Elder) Bernard Angulu Adoji and Deaconess Rebecca Adoji, of Okula-Alloma in Ofu Local Government Area of Kogi State, Nigeria.
He had his primary and secondary education at the St. Paul’s Primary School (now, Mohammed Bankano Primary School), Sokoto and Federal Government College Sokoto, respectively.
A holder of Diploma in Project Management from the International Business Management Institute, Germany and he also has a baccalaureate degree in Economics from the University of Jos, Plateau State, Nigeria. He has four MBAs with specializations in Corporate Strategy, Leadership and sustainability, Entrepreneurship and Business Analytics as well as five graduate (Masters) degrees in Economics, Public Administration and International Affairs, Sociology, Managerial Psychology and Social Welfare.
Adoji also has several non-credit certifications including, Special Executive Masters in Project and Strategic Management (PSM) and Special Executive Masters in International Business Law (IBL) both from the London Metropolitan Business school. Added to these are certifications in Risk Management, Economics/International Business and Change Management all from IBMI, Berlin.
Victor Alewo Adoji who holds a Masterclass certification in Business Management and leadership from the London Graduate School (LGS), also studied and trained with several reputable local and international, professional and academic institutions including the Pan African University of Nigeria, University of Pennsylvania, University of Edinburgh, Wharton University, Yale University, University of Virginia, Oxford University, Harvard University, the World Bank, the IMF and the Boston Consulting Group (BCG).
His first doctoral degree (PhD) received from the University of Panama, focused on credit management. The second, a doctoral degree in Business Administration (DBA), focused on leadership, corporate governance and people management, from Leeds Beckett University, UK. He has a post-doctoral degree; a DBA (Honoris Causa) in Project Management from the Commonwealth University in conjunction with the London Graduate School, UK.
He holds several professional memberships and fellowships, including Fellow, Institute of Credit Administration (FICA) and a British International Certified Credit Fellowship (ICCF), Fellow, Chartered Institute of Public Management of Nigeria, Fellow, Institute of Credit Administration (FICA) and Fellow, American Academy of Project Management (FAAPM). Aside from being a Certified Procurement & Project Management Specialist (CPPMS) and a Master Project Manager (MPM), he is also a member of several professional and academic bodies in Nigeria and beyond including, but not limited to, Nigeria Economic Society (NES), Nigerian Institute of Management (NIM), Institute of Chartered Economists of Nigeria (ICEN) and the America-based Institute for Transformative Thoughts and Learning (ITTL).
Adoji is a faculty member of the Institute of Credit Administration of Nigeria (ICA). The ICA is Nigeria’s only nationally recognized professional credit management body, solely dedicated to the provision of micro and macro credit management education, award of specialist qualifications, development of skills and capacity building of people involved in the everyday management of trade, financial and business credits in Nigeria, Africa and the rest of the world.
He is a board member of the Institute of Chartered Economists of Nigeria (ICEN). The institute promotes and encourages the study and development of the art and science of economics in public practice, industries, commerce and seeks to inculcate professionalism and specialization in the economics profession in Nigeria.
Victor is a hushed philanthropist, an educator, a publisher, an administrator, a professional in politics and an academic. Victor is also an economic development consultant who has contributed to praxis in entrepreneurship, middle management, economic analysis, strategy development and project management.
In addition to his training as a lifestyle coach and level-1 Neuro-Linguistic Programmer (OLCA), Victor Alewo Adoji also trained as a Conflict Analyst with the United States Institute of Peace (USIP). The Institute was established by the American Congress in 1984 as an independent institution devoted to the nonviolent prevention and mitigation of deadly conflict.
His Working Career – (His superlative footprints at Zenith Bank)
Adoji’s working career started with Paterson Cussons (Nig) Plc as a superintendent from where he moved to become the deputy editor, the business section of the northern-based Concern Magazine. He joined Zenith Bank Plc in 2000 and disengaged in 2018 as the head of corporate communication after a meritorious service spanning 18 years.
While at Zenith Bank, Nigeria’s biggest and Africa’s fifth-largest bank, he functioned as a diplomatic liaison who interrelated with diverse stakeholders comprising the board of directors, C-level management and community leaders, dexterously building excellent local and international network endeavours around management, governance, administration, the private sector and civil society.
Further, in this role, he initiated and cultivated robust and strategic relationships with the Fourth Power, thereby contributing to efforts at repositioning and enhancing interactivity and social collaborations on local, international and social media channels.
Having chaperoned the development of aspects of the bank’s stakeholder engagement strategy, he leveraged the ability to drive the embedding of sustainable practices within an organization as part of reputation management initiatives.
He is reputed as a transformation agent with the competence to engineer continuous process improvement while incorporating business-out sourcing initiatives to enhance productivity and modernize operations to attain remarkable results in the face of regulated resources.
He was responsible for establishing strategic partnerships across some sectors of the economy. He was the liaison between the bank and the Nigerian Economic Summit Group (NESG), an organization of private sector leaders representing key economic sectors in Nigeria, the Corporate Council on Africa (CCA), a leading US business association focused on connecting business interests in Africa by promoting businesses and investments between the United State of America and the nations of Africa. He was also a liaison for the World Economic Forum (WEF), a foremost international Organization (for public-private corporations) that engages leading political, business, cultural and other leaders of society to shape global, regional and industry agendas.
As deputy head of the Corporate Communications department at Zenith Bank, he was the lead for the project-specific team charged with the responsibility of marketing (offline and online) the bank’s Initial Public Offering (IPO). The IPO was oversubscribed by 554 per cent, the highest by any bank, in the history of Nigeria’s capital market to date.
He was likewise the team-lead for the marketing team of Zenith Bank’s listing of $850 million worth of its shares on the London Stock Exchange (LSE) as well as post-listing marketing required to access a wide range of institutional investors.
At the time he joined the bank, it was regarded as just “a bank” but with growth around the 10,000th percentile in major financial parameters including, but not limited to, Gross Earnings {8,259%}, Profit Before Tax {7,150%}, Profit After Tax {7,317%}, Total Assets + Contingent Liabilities {8, 128%} and Tier-1 Capital {11,643%}, he left the institution as “the bank”: The biggest and most profitable bank in Nigeria and the fifth largest in Africa.
Adoji was one of the definitional figures at Zenith Bank having handled several responsibilities and served on critical committees and on crucial decision making bodies of the financial behemoth.
For his diligence and impactful roles, he won numerous commendations and awards at both the board and management levels: 2007 – commendation for tremendous project success, 2006 – Best Individual Staff bank-wide, 2003 – commendation for impactful and strategic inter-department support, 2002 – 2003 Best Non-Marketing Staff bank-wide, 2002 commendation for outstanding project implementation and 2001 – 2002 Best Non-Marketing Staff bank-wide.
Adoji, who left Zenith Bank unscathed after almost two decades of a productive and untainted career, has considerable posteriori knowledge amassed from long-term middle and senior positions in management, including process evaluation, public relations, internal and external communications, strategy implementation, and corporate/brand marketing.
He effortlessly applies hands-on experience in market/ecosystem research, business/process analytics, assessment of contexts, initiating and implementing interventions and using design-thinking protocols that are culture-specific and value-adding.
Dr Adoji is cosmopolitan, a well-groomed gentleman and he is joyfully married to Mrs Helen Eneumi and gracefully blessed with children.
His Public-Sector Related Skills/Training/Proficiencies
With over two decades of active private sector engagement at both the corporate and personal enterprise levels and substantial public sector relations, training and experience make Victor Adoji a well-rounded, deeply blended and resourceful individual.
Verifiably, he has a good understanding of issues and a great capacity to incorporate divergences in a manner that is seamless and productive, as his achievements in the corporate and personal enterprise realms and the following rendition of some of his proficiencies and skills attest to.
Some of these works include: (A.) Oxford University – From poverty to prosperity; Massachusetts Institute of Technology (MIT) – The challenges of global poverty; Harvard University – Entrepreneurship in emerging economies; TUDelft Institute – Rethink the city: New approaches to global and local urban challenge; IIMBx Bangalore – Infrastructure development, PPPs and regulation; Princeton University – Making government work in hard places; Berkeley University of California – Solving public policy problems and SDG Academy (World Bank) – Industrial policy in the 21st century: The Challenge for Africa.
His Political Journey…
When Adoji ran for the Senate in 2019 and was not successful in getting the nomination of the Peoples’ Democratic Party (PDP), he alternatively ran on the platform of the African Democratic Congress (ADC). Within four months (October – January) he had (again) traversed over 700 villages in Igala land and all the 98 wards in the eastern flank of Kogi State.
On the platform of a relatively unknown (at the time) ADC, the people, hand-in-gloves with Victor, humbled pessimists and derided predictions with the pre-election, election and post-election outcomes.
Nonetheless, insightful and knowledgeable observers would confirm that the 31,171 votes ‘received’ by Victor Alewo Adoji was a confirmation of two things; Victor is an entrenched grassroots politician and that his strength resides with a generality of the people.
Immediately after the ‘loss’, Victor and his ebullient supporters went back to the grieving electorates, across all the nine local governments to express appreciation for their roles and enormous sacrifices enjoining them to remain steadfast and positive with a final word, “I will be back”. I do not know of any politician who returned to give thanks to the people in ‘defeat’.
Adamu Bello writes from Kogi State, Nigeria.
Feature/OPED
How GoodApp Plans to Formalise South Africa’s Informal Service Sector

By Shaheen Price
South Africa continues to grapple with a crippling unemployment crisis resulting in the highest income inequality in the world, evidenced by a 2023 Gini coefficient of 0.63. Unlike comparable emerging economies like Brazil, South Africa’s high barriers to entry into the informal sector and the difficulties informal businesses face to transition to formal business create a significant economic bottleneck.
While the formal economy struggles to absorb the nation’s workforce, the informal sector, estimated at 7.5 million participants, represents untapped potential.
According to a working paper from the Center for International Development at Harvard University, South Africa’s informal economy has the potential to provide an entry point into the labour market for many unemployed South Africans.
The paper argues that the country has traditionally placed too little emphasis on policy intervention and policy change to give “more oxygen” to the informal economy. It cites research providing evidence that grants, for example, increase business assets by 57%, work hours by 17% and earnings by 38%. Informal businesses that were able to formalise provide even more advantages, typically ending up hiring more staff and paying taxes which add to the country’s fiscus.
Despite its potential, the informal sector, predominantly located in townships, faces persistent challenges: an ability to access finance, an entrepreneurial skills gaps, market access barriers and inadequate infrastructure.
The Institute of Business Advisors Southern Africa (IBASA) says that the two types of businesses that can benefit most from formalising are those that are operating as informal, non-registered businesses and those that are registered businesses, but which lack well-structured processes. Once a business has been formalised, it is able to build up a track record, secure funding and scale operations.
The Harvard paper advocates for deregulating the management and oversight of the informal sector in the longer term with immediate policy interventions including lowering, removing or changing the conditions of licensing and registration costs of – and stipulations to – informal trading as a starting point to realising the potential of the informal sector. This, says the paper, would unleash the informal sector’s power to generate meaningful income opportunities.
The recently launched GoodApp is a pioneering online platform designed to bridge the gap between consumers and a diverse network of home service providers in the informal sector including electricians, plumbers, hairdressers, beauticians, make-up artists, nail technicians, massage therapists, handymen, painters, carpet cleaners, window cleaning services, swimming pool maintenance providers, movers and packers, and cleaners, amongst others. By prioritising professionalism, trust and reliability, the platform aims to bring informal economy service providers into the formal economy.
What sets GoodApp apart is a rigorous verification process which ensures that every service provider undergoes comprehensive background checks, security clearances and certification verification while continuous performance monitoring ensures consistent professionalism and reliability. In addition, customers can access detailed reviews and ratings prior to booking a service provider.
GoodApp offers enormous potential for township service providers in terms of servicing consumers living in suburbia as well as in townships. There is a growing awareness that township communities are not peripheral players in the economy but are instead essential engines of South African consumer power with an estimated spending capacity of R900 billion, according to the latest Township Customer Experience Report.
Nearly half of survey respondents said they were directing more than a quarter of their income towards purchases within their township, highlighting an increasing shift towards hyper-local economic activity.
Amongst the most significant findings of the latest report is the need for transparency and reliable verification. Not only do consumers want to support brands that resonate and understand them, but they also want customer service that is responsive, empathetic and attentive – all traits that help build trust and brand loyalty in a community-driven market.
GoodApp addresses this demand by providing a platform for verified, trustworthy and professional service providers, accessible at the customer’s convenience. By formalising and legitimising informal service providers, GoodApp empowers them to thrive while providing consumers with confidence and peace of mind, ultimately contributing to a more inclusive and equitable South African economy.
Shaheen Price is the Co-Founder of The Good App
Feature/OPED
7 Simple Ways to Get Paid on Time Without Chasing Customers

Running a business in Nigeria isn’t just about providing quality products or services; it’s also about making sure you get paid on time. Too often, business owners find themselves chasing payments, sending repeated reminders, and struggling with cash flow gaps. According to a PwC report, 48% of Nigerian SMEs experience delayed payments, which can disrupt operations, affect salaries, and slow down business growth.
But the real cost of these delays isn’t just the stress of waiting—it’s the uncertainty it creates. Businesses struggle to plan ahead, restock inventory, pay workers, or even keep the lights on. Without predictable payments, expansion is nearly impossible, and owners are left firefighting short-term financial struggles rather than focusing on growth.
If you’re tired of chasing customers for money, here are seven simple ways to ensure you get paid on time—without the stress. The seventh tip includes a newly unveiled tech tool.
1. Set Clear Payment Terms from the Start
One of the biggest reasons payments are delayed is because customers aren’t sure when or how to pay. Avoid this by clearly outlining payment terms before any transaction. Let customers know the exact due date, acceptable payment methods, and any penalties for late payments.
For businesses offering services, a simple invoice with clear terms helps. If you run a school, cooperative, or subscription-based service, structuring payments with due dates reduces confusion. When expectations are clear, payments are more likely to come in on time.
2. Request Upfront or Part Payments
Rather than waiting until the end of a service period to get paid, consider requesting a percentage of the payment upfront. This ensures that customers are financially committed from the start.
For example, if you run a catering business, you can require 50% of the payment before sourcing ingredients. Schools can structure fees into manageable installment plans to encourage parents to pay in advance. When customers have already invested in your service, they are more likely to complete payments on time.
3. Automate Payment Reminders
People get busy, and sometimes, late payments are due to forgetfulness rather than unwillingness to pay. Sending reminders before due dates can prevent this. Instead of calling each customer individually, use automated reminders via SMS, WhatsApp, or email.
For instance, a gym owner can schedule monthly reminders for members before their subscription renewal. Cooperatives collecting monthly contributions can send automatic alerts to remind members of upcoming payments. A simple nudge at the right time can make all the difference.
4. Reward Reliable Customers
Sometimes, the best way to encourage timely payments is to reward the customers who consistently pay on time. This creates an incentive for others to follow suit while reinforcing good payment habits.
For example, a school could offer early payment discounts for parents who settle fees before term starts. A business that provides services on credit could prioritize loyal customers for special deals or extended services. When customers know there’s a benefit to paying on time, they’re more likely to make it a habit.
5. Offer Discounts for Early Payments
Everyone loves a good deal, and small incentives can go a long way in encouraging customers to pay on time. Consider offering a small discount for customers who pay early.
For example, a school can offer a 5% discount on fees paid before the term starts. Landlords can offer a slight reduction on rent if tenants pay before the due date. Small rewards create urgency, motivating customers to settle payments quickly.
6. Enforce Late Payment Penalties (But Politely)
While incentives encourage early payments, penalties discourage late ones. Establishing a small late fee can push customers to prioritize your payment over others. However, the key is to communicate it upfront and enforce it politely.
For instance, a tailor can state that late balance payments will result in an extra charge per day. A cooperative can apply an administrative fee for overdue contributions. Many businesses use “grace periods” before applying penalties to give customers a fair chance. It’s about striking a balance between being firm and maintaining good customer relationships.
7. Use PaywithAccount to Automate and Secure Your Payments
Even with all the right steps in place, managing collections manually can still be time-consuming and stressful. That’s why OnePipe launched PaywithAccount two weeks ago—to help Nigerian businesses get paid on time without the hassle.
PaywithAccount allows businesses to automate payments, ensuring funds are collected directly from customer accounts without the need for follow-ups. This means fewer delays, predictable cash flow, and no more awkward reminders. By eliminating the inefficiencies of traditional payment methods, businesses can focus on what truly matters—growth and customer satisfaction.
Whether you run a school, a cooperative, a gym, or any business that relies on scheduled payments, PaywithAccount simplifies collections and provides peace of mind. Learn more at paywithaccount.com/signup.
In conclusion, late payments can be frustrating, but they don’t have to be the norm. By setting clear expectations, offering flexible options, and using the right tools, you can ensure steady cash flow without stress.
The most successful businesses don’t waste time running after payments—they set up systems that make payments run smoothly. With the right strategy in place, you can focus less on collecting money and more on growing your business.
Feature/OPED
Hidden Extra Tax ‘Tie’ for Parents Visiting Children Studying in the UK

By Julie Howard and Annabella King
There is a significant overhaul in UK tax legislation coming into effect come April of this year and going forwards exposure to UK tax will focus more closely on the length of an individual’s UK residence status. HNW Nigerians whose children are studying in the UK may not be aware that they could be UK resident on the basis of fewer days spent in the UK than expected. This will be dependent on their connections to the UK, including the time their children spend in the UK during school holidays and how much the parents see their children in the UK. It is vital that HNW Nigerians with connections to the UK clue up on this to avoid being caught out.
The new rules and UK residence
From 6 April 2025, the current “non-dom” regime will be replaced with a new residence-based regime.The concept of domicile will be abolished as a connecting factor for UK tax purposes and the remittance basis of taxation will be abolished from 6 April 2025.
Individuals moving to the UK from Africa, who have not been UK resident in any of the previous 10 years, will be eligible to claim a new favourable regime for those first 4 years whereby they will not pay UK tax on foreign income and foreign chargeable gains (known as FIG) even if these are brought into the UK. For individuals who have been UK tax resident for fewer than 4 tax years from 6 April 2025, they will be able to claim this favourable regime for the balance of their first 4 years of UK residence– assuming they meet the requirement of non-residence in the 10 years before they moved to the UK. The UK tax year runs from 6 April to the following 5 April.
For UK tax purposes, liability to inheritance tax has historically been based on the concept of domicile, which is essentially where someone regards their permanent home. From 6 April 2025, domicile will cease to be a connecting factor for inheritance tax purposes. Instead, it will be based on UK residence with an individual becoming subject to inheritance tax on their worldwide estate once they have been UK tax resident for 10 of the previous 20 tax years, known as a “long term resident”.
Whether or not an individual is UK resident will therefore be extremely important under the new rules.The UK has a statutory residence test (the SRT) to determine an individual’s residence status for UK tax purposes. The SRT breaks down into three tests which must be considered in order: firstly, the automatic non-residence test; secondly, the automatic UK residence test; and finallythe sufficient ties test. Whilst the SRT sets out a clear test to determine an individual’s residence, there are still some areas of uncertainty. For example, many of the definitions used, such as “work” and “home” are specific to the legislation and not straightforward and there are specific pitfalls to be aware of such as the hidden extra “tie” for parents visiting children who are studying in the UK.
Hidden extra tax “tie”
For individuals who are not automatically UK resident or automatically non-UK resident under the automatic tests of the SRT, whether they are UK resident will depend on the number of “ties” (i.e. links) that they have with the UK. There are five different ties:
- Family tie – your spouse/civil partner or common law equivalent or minor child/children are UK resident
- Work tie – you work in the UK for at least 40 days (and this applies if you work for more than three hours a day)
- Accommodation tie – you have a place to live in the UK (i.e. a home, a holiday home or accommodation otherwise available to you) which is available for a continuous period of at least 91 days in the tax year and you spend at least one night there in that year. This can include accommodation owned by relatives if certain conditions are met and also rental properties
- 90 day tie – you spent more than 90 days in the UK in either of the previous two tax years
- Country tie – you spent more days in the UK in that tax year than in any other single country (this tie only applies to “leavers” – i.e. individuals who are ceasing UK residence).
African parents with minor children studying in the UK may have a “family tie” on top of other ties and this will reduce the number of days that they are able to spend in the UK without becoming UK resident under the SRT.
Parents witha child under the age of 18 who is in full-time education in the UK should be aware that they may acquire a “family tie” by reason of their childbeing educated in the UK. This will occur iftheir child spends 21 days or more in the UK outside of term time, for example, during the main Christmas, Easter and Summer holidays (the half-term breaks are regarded as term-time); and they see their children on 61 days or more in the UK during the tax year.
If, for example, a child was to spend a week in the UK before term started in September and two weeks in the UK during the Christmas holidays (rather than returning to Africa or going on holiday somewhere outside the UK), this 21 day limit could easily be exceeded and then it would be important for the parent to keep below the 61 day limit to avoid a family tie.
If the parent did acquire a family tie as a result of the above limits being exceeded, they could end up being UK tax resident on the basis of a lower number of days spent in the UK than expected if, for example, they also have available accommodation in the UK and work for more than 3 hours a day on 40 days or more during the tax year– giving a total of 3 ties.
Nigerian parents with children studying in the UK should take advice on their UK residence position if they are unsure as to how much time they can spend in the UK without becoming UK resident.
Julie Howard is a Private Client and Tax Partner at Boodle Hatfield and Annabella King is an Associate
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