Form P85: How to claim a UK tax refund when leaving the UK

Key Takeaways: Leaving the UK Tax Refund (Form P85):

• Why you are owed money: UK personal tax allowances are spread evenly across all 12 months. If you leave part-way through the tax year (e.g. in September), you likely paid PAYE tax based on a full year of work and are entitled to a substantial rebate.
• Who should use P85: Employed individuals leaving the UK permanently or for at least one full tax year who do not file a Self Assessment return.
• Self Assessment filers: If you are self-employed or have complex overseas income requiring Self Assessment, claim your refund via your year-end return (SA100 + SA109), not P85.
• Keep your P45: You must have parts 2 and 3 of your final P45 from your UK employer to verify final PAYE deductions.

If you are moving abroad from the UK and have been paying Income Tax through PAYE, you are very likely owed a tax refund. HMRC Form P85 allows you to notify HMRC of your departure and reclaim overpaid Income Tax without waiting for the end of the tax year.

Why you usually overpay tax when leaving the UK

In the UK, Income Tax under PAYE is deducted on a cumulative basis assuming you will earn consistently over the entire tax year (6 April to 5 April).

For example, the standard UK Personal Allowance (£12,570) is divided into 12 equal monthly allowances (£1,047.50/month). If you leave the UK 5 months into the tax year, your employer only applied 5/12ths of your allowance, even though you are entitled to the full annual Personal Allowance for the entire tax year if you are a UK/EEA citizen or qualify under double taxation treaties.

This almost always creates an automatic overpayment of Income Tax.

Who qualifies to submit Form P85?

You can use Form P85 if:

• you have left the UK or are leaving the UK within the next few weeks;
• you will be living and working abroad permanently or for at least one full UK tax year;
• you were employed under PAYE in the UK; and
• you do not have to complete a UK Self Assessment tax return for the year of departure.

When should you NOT use Form P85?

Do not use Form P85 if:

1. You already file a Self Assessment return: If you are registered for Self Assessment (for example, as a sole trader, company director, or because you have UK rental income), your departure and refund must be declared on your annual tax return with supplementary pages SA109 (Residence & Remittance).
2. You are sent abroad on secondment by a UK employer: If your UK employer continues paying you under a UK payroll while you work abroad, separate NT (No Tax) or modified payroll codes apply.

How to submit Form P85 (Online vs Post)

1. Online Submission (Fastest)

You can submit Form P85 online using your Government Gateway user ID.

• You will upload digital copies of your P45 and answer questions about your overseas employment and living arrangements.
• Refunds can be paid directly into a UK bank account or a designated nominee's account.

2. Paper Postal Submission

If you cannot access Government Gateway from abroad, you can download, print, and post the paper P85 form to HMRC.

• You must attach the original Parts 2 and 3 of your P45 form.
• Address: HM Revenue and Customs, Pay As You Earn and Self Assessment, BX9 1AS, United Kingdom.

What information and documents to gather

Before starting your P85 application, ensure you have:

1. Your final P45: Issued by your last UK employer after final payroll processing.
2. National Insurance Number and UTR (if applicable).
3. Exact Departure Date: The day you left or plan to leave the UK.
4. Overseas Residential Address: Where HMRC can send correspondence or cheques.
5. UK Bank Details: For fast BACS refund deposits.

Common questions about Form P85

Can HMRC send my tax refund to an overseas bank account?

HMRC generally issues refunds via BACS to UK bank accounts or by sterling payable order (cheque) posted to your overseas address. You can also nominate a friend or relative in the UK to receive the payment on your behalf.

What if I haven't received my P45 yet?

Ask your employer for your final P45 before filing P85. If your employer has ceased trading or refuses to issue one, submit your final payslip showing year-to-date figures alongside a covering explanation.