Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

You can use a P85 Form to notify HMRC if you’re planning to leave the UK permanently or to work abroad for a minimum of one tax year. Submitting a P85 helps HMRC work out your tax status and ensure that you pay the right amount of tax (or claim a refund if you’ve overpaid).

Do I need to complete a P85 Form?

You should complete a P85 form if you don’t normally submit Self Assessment tax returns, but need to tell HMRC you’re leaving the UK. If you usually send a Self Assessment return you can use that instead either by completing the online section of the form or by including an SA109 supplementary form if you send paper returns.
 

Comprehensive tax return services

From only £24.50 per month

Learn more

Why do HMRC need me to submit a P85?

HMRC use the information you provide on the form to check that you’ve paid the right amount of tax for the year.

For example

When you work for an employer long-term, they normally calculate your tax on the basis that you will claim the full Personal Allowance over the year.

If you leave the UK mid year, then you might not use all of your allowance, and will be owed a tax refund.

Submitting a P85 (or a tax return if you use that instead) also helps HMRC understand your tax resident status – for example, in case you pay tax in different countries. Tax residency is complex, and is based on the connections you have to a country. It is possible to be a tax resident of more than one country simultaneously.

Why is my tax residence status important?

Your tax residence affects where you pay tax on any earnings. For instance, if you leave the UK for a short holiday you’re unlikely to need to pay income tax in the country you visit, so won’t need to notify HMRC.

If you earn money from an overseas employer, or if you work overseas for a UK employer, it gets a bit more complicated. The P85 helps HMRC work out how much tax you need to pay, and where. It also reduces the risk of having to pay tax twice on the same income if there’s a double taxation agreement in place between the two countries!

 
Learn more about our online accounting services for businesses. Call 020 3355 4047 to chat to the team, and get an instant online quote.

About The Author

Elizabeth Hughes

A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth, or visit LinkedIn.

More posts by this author
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Read more posts...

UK Tax Rates, Thresholds and Allowances for the Self-Employed

Read our guide to UK tax rates and thresholds for sole traders, limited companies, partners and partnerships, employers, and other businesses. UK…

Read More

When Should I Submit My 2023/24 Self Assessment Tax Return?

Submitting your tax return as soon as the next tax year starts might seems like a strange notion, but it definitely has…

Read More

November 2024 Client of the Month: Bingham Carbon Solutions Limited

This month we spoke to Sean Bingham, Managing Director of Bingham Carbon Solutions Limited! Bingham Carbon Solutions Limited | LinkedIn Hey Sean! Tell…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.