P85 Income Tax Leaving the UK Getting Your Tax Right


P85 is an income tax form you need to submit to HMRC if you’re leaving the UK to live abroad permanently, or if you’re going to work abroad full-time for one full tax year.

You can use the P85 form to claim tax relief or any tax refund you’re owed and to inform HM Revenue and Customs of any UK income you may continue to receive.

However, you don’t need to inform HM Revenue and Customs (HMRC), if you’re leaving the UK for business visits or holidays.

What you need to do?

You need to fill in the P85 Form and send it to HM Revenue and Customs (HMRC). You may also need to include Parts 2 and 3 of your P45 form; you can get these from your employer.

You may also send a Self Assessment tax return instead if you usually complete one, e.g. if you are self employed.

Please remember, you can use HM Revenue and Customs (HMRC’s) online services to inform them that you’re leaving the UK.

This is why; you need to send your tax return by post. It is always wise to seek help from a professional, i.e. an Accountant. Visit our Contractor Accountants Directory if you need professional help.

Address where you need to send the completed form:

Pay As You Earn (PAYE)
HM Revenue and Customs (HMRC)

Please remember to complete the ‘residence’ section in your tax return (form SA109 if you’re sending it through post).

Also remember, you could be charged a penalty for failing to meet the deadline. The last tax year started on 6 April 2015 and ended on 5 April 2015.

Important Deadlines:

- You should register for Self Assessment by 5 October 2015
- Paper tax returns should be filed by midnight 31 October 2015
- Online tax returns and pay the tax you by midnight 31 January 2016

There’s an additional payment deadline of 31 July if you make advance payments towards you bill.

What will happen next?

HMRC will calculate and figure out if you’re owed a refund for the tax year you’re leaving the UK.

If you’re a non-resident, you wouldn’t need to pay UK tax on income or gains you get outside the UK. You may be considered a non-resident the day after you leave the UK, this would depend on how split year treatment applies to you and your situation.

It is also advisable to inform you local council so that you stop paying Council Tax.

If you have income coming from renting a property in the UK, you may still be required to pay UK tax even though you would be a non-resident. You also need to ensure that you don’t pay tax twice, as the UK has double taxation agreements with many countries.

You may still want to continue paying National Insurance while you’re abroad if you’re:

1. Planning to come back to the UK
2. Going to claim State Pension later

You can’t claim back any National Insurance when you leave.

Download P85 Form (right click and save as)

Note: It is always good to seek professional help, i.e. of an Accountant. You may also want to refer to Gov.uk for up to date information.

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