Leaving the UK? Why Filing HMRCs P85 Form Could Put Money Back in Your Pocket

PERSONAL TAX

3K Financial & Accounting Services Ltd  |  Keeping Klient Knowledgeable

Thousands of people move abroad every year, and many may be missing out on a tax refund simply because they did not tell HMRC they were leaving. Figures obtained by UHY Hacker Young show that 69,000 digital P85 forms were submitted in 2025-26, up 32% from 52,000 the previous year. Yet the Office for National Statistics (ONS) estimates that 246,000 British nationals left the UK to live abroad in 2025, so the forms submitted equate to only around 28% of that number. It is a rough comparison, as the two figures come from different sources, but the gap is striking.

What is the P85?

The P85 is the form individuals use to tell HMRC that they are leaving the UK permanently and, where appropriate, to claim any tax refund they may be due. It is available online or as a paper form.

Is it compulsory?

No. HMRC has confirmed that submitting a P85 is not mandatory for everyone leaving. According to Neela Chauhan, partner at UHY Hacker Young, one major reason many leavers do not file one is that, where a person must complete a Self Assessment tax return, their residence and departure details are reported through the return instead.

Even so, her firm generally advises anyone leaving the UK permanently to file a P85 to avoid confusion at HMRC. It also prompts HMRC to carry out a tax calculation that can result in a refund.

What information will you need?

Before applying, HMRC’s guidance says you should have the following ready:

•     Details from your P45 or the tax notice your employer gave you when you left your job.

•     Whether you still have a UK home.

•     Whether you will continue to receive UK income.

•     How much time you expect to spend in the UK over the next three years.

How do you claim?

The claim can usually be completed online through HMRC’s website. You can claim by post instead if you have not yet left the UK or if you prefer not to use the online service. If a repayment is due, HMRC will arrange payment once the claim has been processed.

A practical tip: it is advisable to keep a UK bank account open until you have received any refund, so that you can avoid currency conversion fees.

Beyond the P85

Leaving the UK can have wider tax consequences, including your residence status, income that continues to arise in the UK, property you keep here and any Self Assessment obligations. The P85 is only one part of the picture, so it is worth getting advice before you go rather than after.

If you or someone you know is planning to move abroad, our team can help you understand your obligations and make sure that your tax affairs are in order before you leave.

KEY TAKEAWAYS •     Only 28% of people leaving the UK in 2025 filed a P85, by a rough comparison of ONS and HMRC-related figures. •     The P85 is not mandatory, but it can trigger a tax calculation and a possible refund. •     Keep a UK bank account open until any refund has arrived.