Tax rebate when leaving the UK


If you’re leaving the UK to permanently move abroad; or leaving the UK to work abroad full-time for at least one full tax year, you could be owed a substantial tax rebate from HMRC.

Basic rule

A UK tax year runs from 6 April in one year to 5 April the next. If you are physically present in the UK for 183 or more days in any one tax year, you are considered a UK resident for tax purposes. If you leave the UK to work abroad, you may be treated as a non-UK resident from the date you leave. You can still be a UK resident for tax purposes if you live abroad and visit the UK for more than 90 days in a tax year.

You must inform HMRC if you are leaving the UK for more than one tax year. If you’re leaving the UK for purposes such as holidays or business trips, you do not need to tell HMRC.

How to get tax back when leaving UK

Before you leave the UK, you will need to fill in form P85 and send this to HMRC. This form enables you to claim tax relief as well as any tax refund that you are owed. It should also be used to inform HMRC of any UK income that you will continue to receive whilst abroad.

If you are employed or on Jobseekers Allowance, you should also include Parts 2 and 3 of your P45 along with form P85. If you’re self-employed, you should send a self-assessment tax return.

UK Income When Living Abroad

If you are leaving the UK, you will usually still be liable to pay tax on your UK income such as wages, pensions, rental incomes, and savings. If you’re eligible for a Personal Allowance*, you will only pay tax on the income above that amount.

*When living abroad, you’ll get a Personal Allowance of tax-free UK income each year if you’re a citizen of a European Economic Area country or if you’ve worked for the UK government at any time during that tax year.

Double-Taxation Agreement

The country in which you are resident in may also tax you on your UK income. If the country in which you are resident in has a double-taxation agreement with the UK, you may not have to pay twice.

Depending on the agreement, you can claim tax relief in the UK to avoid being taxed twice or you can apply to receive a refund after you have been taxed.

If the tax rates in each country differ, you are liable to pay the higher rate. Similarly, if you work abroad during a temporary trip, you may still be liable to pay UK income tax on your earnings.

Each individual situation has different taxation consequences. It is recommended to seek professional advice as certain circumstances are much more complex than others.

Need help claiming your tax back?

Everyone’s tax situation is different. If you would like a professional advisor to help you claim your UK tax back for a low fee, please contact us or call 01473 760359.

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Comments (31)

  • Nita Reply

    Hi i am leaving uk now and I am here from October 2009 – April 2017 about 8 years ! How can I return all payd taxes for all years and how fast is this process! Which forms I should feel in? Thanks

    March 9, 2017 at 12:46 pm
    • Sanjay Madhavji
      Sanjay Madhavji

      Hi Nita, just because you are leaving the UK does not mean you can claim back all taxes from all years (presumably you still used the roads, hospitals and other facilities that your taxes pay for?). Most people that leave the UK part way through the tax year can get a rebate because they wouldn’t have used all of their personal allowance. But as you are leaving in April, it is very unlikely you will get anything back. You need to fill in a P85 form to inform HMRC that you are leaving.

      April 2, 2017 at 2:37 pm
  • DUMITRU Reply

    I have been living and paying taxes for 5 years now. And next year by May i’m going back home for good. Can i ask for the whole taxes i’ve paid till now back? As i understand i need a P85. And what kind of documents or forms i need for it?

    Please get back to me as soon as possible

    Thank you in advance

    October 2, 2016 at 12:22 am
  • Kristine Ulmane Reply

    Hi I won’t to sorted out can I get back my tax for all the years I been in UK I moved to USA and watch do I need to do .. I didn’t know what too do till someone told me that I can get them back

    September 29, 2016 at 5:20 am
  • Asvin Reply

    Hi,

    I lived in UK from Jan 2016 to july 2016 for work purposes and paid tax for the same duration.
    I returned back to india on July 2016, Will i be eligible for tax returns. I do submitted my P85 to my office before returning.
    Till now i never received any mail or post regarding the same.
    Looking forward to hear from you.

    Thanks,
    Asvin

    September 28, 2016 at 12:47 pm
  • Helen hunter Reply

    Hi I left the uk in 2002 and didn’t relize I could claim my taxes back until now am I still able to and what forms do I need to fill out many thanks for any advice given

    September 26, 2016 at 7:26 pm
  • Karolina Csakvari Reply

    Hi,

    I am an EU national, and I have worked and paid Tax and National Insurance in England for 8 years.
    Can I get back my full contribution since 2008?
    And which form to fill in ??

    Regards Lina

    September 24, 2016 at 6:17 pm
  • Scott Reply

    I am working in Oman ,I left the U.K. For my first trip on April the 23rd 2016 ,if I have only been in the uk for 90 days from 6th April 2016 until 5th April 2017 will I qualify as non resident to claim my tax back for the 2016-2017 tax year . Bearing in mind I might not qualify for 2017-2018 if the job finishes during 2017-2018 but after the end of the tax year.so I will have only spent 90 days or less between April 6 16 – April 5 17

    September 21, 2016 at 1:39 pm
  • Vincent Mullen Reply

    Was working in Canada Jan 2014 to Nov 2015 I’m UK resident an was wondering if I shud file tax return h see here or in Canada? If

    September 14, 2016 at 12:08 am
  • George Reply

    Ive been working in the uk for 8 months but i will be leaving the uk to go back to Romania,how do i get my tax back since i didint go over my personal allowence.what do i need to do ?

    September 13, 2016 at 11:09 pm
  • Jen Reply

    Hi Amit,

    i moved over-seas to Canada in October 2015 and have no current plans to return to the UK.
    I understand that i will need to send a P85 and part 2&3 of the P45 to HMRC, but am wondering about the SA109 form? Will i also need to complete and include this?

    /Jen

    September 6, 2016 at 12:18 am
  • victoria Reply

    In September i am leaving the UK to travel Asia for 4 months and then to Australia on a year long working visa with the hope of renewing this at the end for a further year. I have been paying tax since 2009 and i am working up until September of this year. would i be able to claim a refund for the tax i have already paid for this tax year as i have not yet earned over £10000. Thanks in advance

    August 16, 2016 at 1:26 pm
    • Sanjay Madhavji
      Sanjay Madhavji

      Yes you will be able to claim if you don’t plan to work for the rest of the tax year :)

      December 14, 2016 at 9:56 pm
  • Lily Reply

    Hi,

    I am leaving UK for good on the 4th August,2016 and I have paid tax since 2012. I did noticed that I have to complete P85 form and send it to HMRC. But I am still employed full-time until July. Can P85 form be submitted without 2/3 parts of P45? And from which year can I claim back my tax?
    How long does it normally take for the HMRC to refund the tax?

    April 18, 2016 at 8:22 pm
    • Sanjay Madhavji
      Amit Soni

      Hi Lily, you will need to wait for your P45. The refund cannot be issued without this. If you have left the country before your P45 is issued, we deal with the claim for you (fees applicable). The refund will most likely be for the current tax year. The process normally takes 6-12 weeks.

      April 21, 2016 at 2:17 pm
  • Lauren Reply

    Hi,

    I left the UK in August 2015 on a working holiday visa in Australia. I didn’t inform the tax as I wasn’t sure how long I’d stay. I’ve now been offered a 4year visa so will be staying.

    Am I eligible for a tax rebate? And if so, do I complete the P85 form.

    Thanks,

    Lauren

    April 13, 2016 at 8:21 am
    • Sanjay Madhavji
      Amit Soni

      Yes you should complete a P85 form

      April 13, 2016 at 10:56 am
  • Sara Guerra Reply

    Hi Sanjay,

    I’m moving back to Portugal after 3 years working in the UK and would like to know more about tax refunds. I’m slightly confused around how many years I can claim back as in the link you’ve pasted above it says ”HMRC will allow you to back-date your tax claim for up to 4 years”, however in your previous comments I get the sense I can only claim the current year.

    Could you please clarify? Thanks so much for your help!

    February 28, 2016 at 6:37 pm
    • Sanjay Madhavji
      Amit Soni

      Well its a bit of both! Leaving the UK will not allow you to claim tax back for the last 4 years. If you leave part way through the tax year, most people can claim a rebate for the current year (as they wouldn’t have utilised all of they annual personal allowance).

      If you have overpaid tax in previous years, then you can claim it back for up to 4 years. Part of the service we offer is checking back over the last 4 years to see if you have overpaid tax as well as reviewing the current year.

      March 3, 2016 at 10:28 pm
  • Mark Reply

    Hi there,

    I’m a nurse here in the UK and I am moving to Houston to live
    And work permanently just before the fiscal year ends. Should I fill out form p85 to know if there are taxes k am owed?

    February 26, 2016 at 9:52 am
    • Sanjay Madhavji
      Amit Soni

      Yes that is the correct form.

      March 3, 2016 at 10:32 pm
  • Swami Reply

    I have worked in the UK from 2005 till 2009 and left to India for good, can i apply for a tax refund ( using form P85 ) now also i only have few P45 forms and the last employment hasn’t sent me P45 yet.

    January 8, 2016 at 10:01 am
    • Sanjay Madhavji
      Amit Soni

      Hi, I’m afraid the deadline has now passed to claim for 2009. Please see here.

      January 14, 2016 at 4:51 pm
  • Darius Reply

    Hello

    I work in uk and paid taxes from 2013, and now i want to go in my country ( romania) for good ( i dont want to come back in uk ) , can i claim all my taxes back ????

    September 14, 2015 at 12:28 pm
    • Sanjay Madhavji
      Amit Soni

      Hi Darius, you won’t be able to claim all of your tax back. However, if you leave part-way through the tax year, you can almost certainly claim back some tax due to the unused personal allowance.

      September 14, 2015 at 1:37 pm
  • helena Reply

    Hi

    I am a nurse working in Dubai can i claim tax back on my nmc reg?

    August 2, 2015 at 5:47 pm
    • Sanjay Madhavji
      Amit Soni

      You can but only if pay tax in the UK on employment earnings

      August 19, 2015 at 3:55 pm
  • Marjetka Simonic Reply

    Dear,

    I am an EU national and have lived, worked and paid tax in UK for last 6 years. I am moving back to Slovenia. Am I able to claim tax relief and am I required to fill in form P85 and send this to HMRC.

    Kind regards,
    Marjetka

    July 20, 2015 at 1:48 pm
    • Sanjay Madhavji
      Amit Soni

      You won’t be able to claim back for the last 6 years. If you are leaving part-way through the current tax year, then you may be able to claim some of this years tax back with P85 claim.

      August 21, 2015 at 4:23 pm
  • Kerry Hill Reply

    I am travelling to Thailand to do some voluntary work for 4 months or so (maybe a little longer). I understand I don’t need to tell HMRC, but then will I still be due a tax rebate? If so how do I claim it back?

    June 2, 2015 at 7:12 pm
    • Sanjay Madhavji
      Amit Soni

      Hi Kerry, you will most likely be due tax back as you won’t have used all of your personal allowance. It depends on your circumstances and income – not everyone will get a rebate. You can use the form on this page to inform HMRC that you are leaving and claim your tax back – although they may need to wait until the tax year is over to assess your full year income. Feel free to contact us for more advice.

      June 3, 2015 at 8:46 pm

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