If you’re planning to leave the UK and want to make sure your Income Tax is dealt with correctly, the HM Revenue & Customs has provided guidance on how to do so. By using form P85 or the online service, you can inform HMRC that you’re leaving the UK and may be entitled to a tax refund on leaving the UK. This article will guide you through the process of claiming back tax from your UK employment, whether you’ve lived and worked in the UK, left and might not be returning, or are working abroad full time for at least one tax year. Make sure to check your P45 for the necessary details and follow the steps provided to claim your tax refund on leaving the UK efficiently.
Overview
Get your Income Tax right if you’re leaving the UK using P85 Form
If you’re leaving the UK and want to ensure you get your Income Tax right, it’s important to follow the necessary steps outlined in form P85. This form allows you to inform HM Revenue & Customs (HMRC) that you’ve left or are leaving the UK and want to claim back any overpaid tax from your UK employment. Whether you’ve lived and worked in the UK, left the UK and may not be returning, or work abroad full time for at least one tax year, this article will guide you through the process of claiming back income tax when leaving the UK and ensuring you comply with the necessary requirements.
Before you start
Check your P45 for ‘details of employee leaving work’
Before beginning the process of claiming back tax on leaving the UK, be sure to check your P45 for any relevant information regarding your departure from your current employment. This information will be necessary when filling out the P85 form.
Inform HMRC if you have a home in the UK
It’s important to inform HMRC if you have a home in the UK, as this may affect your tax situation and eligibility for a tax refund on leaving UK.
Inform HMRC if you work full time outside of the UK
If you currently work full time outside of the UK, it’s crucial to notify HMRC of this information. Working full time outside of the UK may have an impact on your tax liability and eligibility for claiming income tax back when leaving the UK.
Inform HMRC if your salary is still paid in the UK
If your salary is still paid in the UK even though you’ve left the country, make sure to inform HMRC of this. It’s important for them to have up-to-date information on your employment and income to ensure accurate tax calculations.
Inform HMRC if you will spend time in the UK over the next 3 years
If you plan on spending any amount of time in the UK over the next 3 years, it’s essential to let HMRC know. This information may impact your tax residency status and potential tax obligations.
Claim online
Use the online service if you have a Government Gateway user ID and password
If you have a Government Gateway user ID and password, you can take advantage of the convenient online service for claiming leaving the UK tax back. This service allows for a streamlined process and ensures efficient communication with HMRC.
Print and post your claim if you have not left the UK yet
If you haven’t left the UK yet, you’ll need to print and post your claim instead of using the online service. This can still be a straightforward process, but be sure to follow the necessary steps outlined in the next section.
Print and post your claim
Start your claim online
To begin the process of claiming income tax back when leaving the UK, you can start your claim online. This will provide you with the necessary forms and information to ensure a smooth process.
Print the claim
Once you have completed the necessary forms online, you’ll need to print them out. Be sure to double-check that all the information is accurate and complete before proceeding.
Sign the declaration
Before sending in your claim for tax back when leaving the UK, make sure to sign the declaration section of the form. This verifies the accuracy of the information provided and confirms your understanding of the process.
Include your P45 if you have it
If you have a P45, be sure to include it with your claim for tax back when leaving the UK. This will provide further evidence of your employment and departure from your previous role.
Post it to HMRC
Once you have completed all the necessary steps, you can post your claim to HMRC. The address to send it to is:
Pay As You Earn, HM Revenue and Customs, P O Box BX9 1AS
What happens next
Payment or payable order
If you are due a repayment of tax back when leaving the UK, HMRC will make arrangements to either pay you directly or someone else on your behalf. This could involve sending you a payable order to your address or your nominee’s address, which can then be deposited into a bank account held in your or your nominee’s name.
Checking progress of your claim
After submitting your claim for tax back on leaving the UK, you will receive a reference number that you can use to track the progress of your claim. This allows you to stay informed about the status of your tax refund and any further steps that may be required.
Converting repayment to another currency or transferring it abroad
HMRC does not pay any fees for converting tax repayments into another currency or transferring them abroad. If you require your repayment in a different currency or need to transfer it overseas, you will need to make the necessary arrangements and cover any associated costs.
Keeping your UK bank account open until you receive the repayment
To avoid any fees or complications, it is recommended to keep your UK bank account open until you have received your tax repayment. This ensures that the repayment is received successfully and avoids any additional expenses.