The P85 form is a document used in the UK for tax purposes when an individual leaves the country. It is submitted to HM Revenue and Customs (HMRC) to:
- Notify them of your departure.
- Claim a tax refund if you have overpaid tax in the year you leave.
- Determine your residency status for tax purposes.
This form is particularly useful to ensure your tax affairs are handled correctly after becoming a non-resident for UK tax purposes. However, its use is optional if you already manage your taxes through the Self Assessment system. Always refer to the latest guidance on the official HMRC website to ensure compliance with current rules.
When to Use the P85 Form
You should use the P85 form if:
- You’re Leaving the UK Permanently: If you are moving abroad and do not plan to return to live or work in the UK.
- You’re Working Abroad Temporarily: If you will be working outside the UK for a significant period and meet the criteria for non-residence under HMRC rules.
- To Claim a Tax Refund: If you overpaid taxes during the tax year in which you left the UK.
Note: You do not need to submit a P85 form if you complete a Self Assessment tax return, as the same information will be collected there.
Information Needed for the P85 Form
To complete the form, you will need:
- Your personal details (e.g., full name, address, and National Insurance number).
- Information about your last UK employer, including final salary and tax details from your P45 form.
- The date you left the UK or intend to leave.
- Details of any income you expect to receive after leaving, including foreign income or UK-based income like rental property or investments.
- Bank details for receiving any tax refunds.
How to Submit the P85 Form
- You can download the P85 form from the official HMRC website or complete it online.
- Submit the form to HMRC along with any supporting documents, such as your P45 from your last UK employer.
- If applicable, HMRC will update your status to non-resident and process any tax refunds.
Key Considerations
- Residency Status: Submitting the P85 form helps HMRC determine your tax residency status. This is critical, as UK residents are taxed on their worldwide income, while non-residents are only taxed on their UK income.
- Self Assessment Requirement: If you file a Self Assessment tax return, you don’t need to submit a P85 form, but you must still inform HMRC about your change in circumstances.
- Returning to the UK: If you return to the UK, you will need to update your residency status with HMRC, as your tax obligations will change.
- Double Taxation Agreements: If you are working abroad, check if the UK has a tax treaty with your destination country to avoid double taxation.