HMRC Form P85: claiming tax back when leaving the UK
When to submit Form P85, claiming PAYE tax refunds upon departure, and why P85 does not replace the Statutory Residence Test or SA109.
Short answer: Form P85 is the administrative form used to notify HMRC that you have left or are leaving the UK and to claim a repayment of overpaid PAYE Income Tax. Because UK personal allowances are spread across all 12 months of the tax year, leaving mid-year usually means you have overpaid tax. However, submitting a P85 is not a formal legal determination of non-residence and does not replace the need to file a Self Assessment return with SA109 residence pages if you have other UK income or complex affairs.
Key points
- Use Form P85 if you paid UK tax under PAYE and are moving abroad permanently or for full-time work.
- Calculates tax refunds generated by unused months of your annual UK Personal Allowance.
- Do not use P85 if HMRC already requires you to file a Self Assessment tax return.
- P85 does not provide official statutory clearance of UK non-residence status.
- Can be submitted online via Government Gateway or by postal form.
Why leaving mid-year generates a PAYE tax refund
In the UK, your annual Personal Allowance (£12,570) is divided equally across the 12 pay periods of the tax year. Each month, PAYE assumes you will work for the entire 12-month period.
If you leave the UK partway through the tax year (for instance, in September after 5 months of employment), you have only received 5/12ths of your tax-free allowance against your earnings. Submitting Form P85 allows HMRC to recalculate your tax using your full entitlement, resulting in a direct refund of overpaid tax.
When to use Form P85 vs Self Assessment
Form P85 is specifically designed for individuals whose only UK income was taxed under PAYE and who are not registered for Self Assessment. You should submit Parts 2 and 3 of your P45 from your former employer alongside the P85.
If you already complete Self Assessment tax returns, or if you have UK rental income, capital gains, company directorships, or other untaxed sources, you should not submit a P85. Instead, your departure, split-year treatment claim, and tax refund are claimed through your annual Self Assessment return (SA100) using the SA109 residence schedule.
- Eligible for P85: Employed individuals with no Self Assessment filing requirements moving abroad
- Not eligible for P85: Landlords, self-employed, company directors, and individuals with untaxed UK income
- Required documents: Form P45 (parts 2 & 3), final payslip, overseas address, and departure travel details
What Form P85 does NOT do
There is a widespread misconception among expats that submitting Form P85 serves as formal HMRC approval or a legal certificate of non-residence. It does not.
HMRC processes P85 primarily as an administrative mechanism to close a PAYE employment record and issue a repayment. Your legal tax residency is determined solely by the Statutory Residence Test (SRT) under Schedule 45 of the Finance Act 2013. You must maintain thorough records of your departure dates, travel tickets, accommodation, and UK visit days to substantiate your non-resident position if questioned by HMRC in the future.
Written and reviewed by Matthew S Manderson CTA ATT AMIT
Reviewed 3 September 2026. General guidance only; tax treatment depends on individual facts.