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Hello
I was granted ILR through 5 years on Tier 2 system in March 2020, I have completed 12 months since and want to apply for British citizenship, however I read this in the UkGov website:
You must have been physically present in the UK exactly 5 years before the Home Office receives your application. Your application may be rejected if you cannot prove this. For example: If the Home Office receives your application on 20 June 2022, but you left the UK on 10 June 2017 and returned to the UK on 25 June 2017, you will not qualify. You’ll need to wait until 24 June 2022 to apply.
I used to travel home on annual leave every year, last time was in 2020 and I got back in October 2020, does this mean I have to wait until October 2021 to apply for British citizenship ? Many thanks

The quoted piece clearly states it is 5 years ago, so if you apply today, you should have been physically present on the same date 5 years ago.

Thank you for the reply, so that I understand , does this mean if I apply in March 2021,I should have been present in the UK in March 2016?

Yes

Thats great, thank you!