If you are considering departing from the UK it’s important to be aware that you have the right to claim a tax refund if you have overpaid income tax, upon your exit from the country.
A leaving the UK tax refund is more likely if you are employed under PAYE and leave the UK during the tax year.
The current 2025/26 UK tax year starts on 6 April 2025 and ends on April 5 2026.
Your nationality and the country you are leaving the UK to live in doesn’t affect your eligibility for a PAYE tax refund.
If you are entitled to a leaving the UK tax refund a claim is normally necessary to claim back what you are due from the UK government.
Her Majesty’s Revenue and Customs (HMRC) is the department that collects and refunds income tax and they have a particular process that they expect you to follow to reclaim overpayments.
The main reason for an employed individual who is leaving the UK to pay too much tax is based around the personal allowance which let’s you earn that amount tax free.
Your tax free personal allowance is allocated evenly across the tax year so if you don’t use it all you are often eligible to claim for the months in which you were not in the country.
For example, if you were employed and paid tax for 8 months but then departed from the UK, you can request a refund for the 4 months that remain.
Can you reclaim all your tax if you permanently leave the UK?
The response from HMRC will vary depending on the amount of tax you have contributed according to your earnings and the income tax paid from the tax year you leave UK.
You can use our UK tax back calculator to get an estimate of what you may be owed back from HMRC.
A tax rebate may also be due from previous tax years up to a maximum of four, for reasons other than leaving the UK.
How do I claim a leaving the UK tax refund from HMRC?
HMRC makes available the form P85 if you want to claim a tax refund when leaving the UK and don’t have to complete a self assessment tax return.
The P85 form can be submitted as you are leaving or after you have left the UK as long as it’s within the timescales for claiming.
A P85 can be used by individuals who don’t expect to return to the UK and for those who plan to come back but after the tax year they leave.
You can complete the P85 online via .GOV and submit it to HMRC digitally or by post to the address on the form.
It’s essential to bear in mind that the P85 is only applicable if you do NOT come back to the UK for work prior to 6 April which marks the beginning of the next tax year.
If you intend to reclaim tax during a gap year or a long holiday, it is essential that your time spent abroad covers a complete tax year to guarantee your eligibility for a tax refund.
Any tax rebates from previous tax years can be refunded by HMRC at the same time. For employees you may have overpaid tax for a few different reasons like having the wrong tax code, gaps in employment and job related expenses.
If you think you have an incorrect tax code you can use the free HMRC online tool to check your income tax for the current tax year.
For self assessment filers you shouldn’t need to complete a P85 because your tax return will cover any overpayments of income tax.
Individuals leaving the UK may need to complete a tax return for a number of reasons including non resident tax.
For example anyone who is subject to both the US and UK tax regimes, completing a tax return in line with the tax treaty between both nations is crucial to avoid double taxation.
How long do I have to claim back tax from the 2025 tax year?
HMRC gives you four tax years to make a claim for a tax rebate from the pay as you earn system (PAYE).
After the four tax year deadline passes it will generally be too late for any overpaid tax to be repaid.
To make the process as smooth as possible you should keep any P60 and P45 forms given to you by your employer(s) because HMRC will sometimes need them to review and reconcile your tax record.
Creating a personal tax account through .GOV is cost-free, straightforward to set up, and serves as a valuable aid in managing your tax matters online from outside the UK.
