Leaving UK Tax Back Guide

If you’re moving away from the UK, or you have relocated in the last four tax years, you could be owed a leaving the UK tax refund.

It is common for taxpayers to be due a tax refund from the tax year in which they left the UK, which you have four tax years to reclaim from HMRC.

How much UK tax back you can claim varies and you can find that you are owed a refund from more than one tax year which can increase what you can be due back.

Not using your full tax free personal allowance is the number one reason for being owed a refund of tax when you leave UK.

Other reasons exist which you should take time to understand to maximise your UK tax refund claim.

The way you claim leaving the UK tax back from HMRC depends on a number of factors including your employment status and what you are claiming for.

Our gude will walk you through the process of claiming UK tax refunds when relocating abroad – from checking your eligibility to completing the necessary paperwork and following up with HMRC.

Who is allowed to claim UK tax back?

Anyone who has been employed under PAYE and left the UK in the last four tax years is allowed to apply for a UK tax rebate.

To be eligible you must have earned enough to pay income tax in the tax year(s) of your refund claim.

It’s important to remember that HMRC wants to refund your money but you typically need to apply for it to get it back.

Why would I be due a leaving the UK tax refund?

There are several reasons why you may be able to recoup some tax. These include:

• Personal Allowance – if you have not used the entire amount in the year you leave.
• Job expenses − There are a whole range of work expenses you may not have claimed before you left. For example: buying equipment for work, looking after your uniform and belonging to a Trade Union.
• Tax codes – if you had an incorrect tax code during any of the years of your claim.
• Having non-resident status, or being a non-resident landlord of property in the UK.
• You are paying UK tax on pension income from the UK.
• You continue to be a UK taxpayer but are employed in another country.

Our free income tax guides can help you understand more about what tax relief is available.

Leaving the UK tax refund timescales

This is important because the rules are strict and if you don’t claim back what you are owed before the deadline you will lose any money you are owed.

You have four tax years to claim back a UK tax refund from the tax year in which you leave.

The tax office needs you to submit an official claim within the four year timescale before they can refund your overpaid income tax.

How much UK tax back can I claim?

There’s no upper limit. The amount of UK tax you can claim back depends on a number of factors, like how much tax you paid in the UK, and if you had other sources of income.

For these reasons how much you can reclaim is specific to your own set of circumstances in the UK.

You can use our Free UK tax back calculator to work out how much your UK tax refund could be.

It is common for people who are leaving the UK to only be due a repayment of income tax from the tax year in which they leave.

In these circumstances you should be entitled to the difference between the tax you did pay in that tax year and the figure you would have paid if you worked for the full year.

How to claim my leaving the UK tax back using a P85

Choosing the right form to claim your tax refund is vital to ensure a smooth process.

The key leaving the UK forms to consider are:

• A P85 contains the date you left the UK, your UK residency status and your employment situation abroad. The P85 can be completed and submitted online or posted to the tax office.

The form P85 claim can normally be submitted to HMRC online which is usually the quickest and easiest way, or by post if necessary.

• Your Form P45 will be given to you from your last UK employer when you leave their employment. If you do not have your P45 a claim is still possible however it might take HMRC longer to complete.
• Self assessment tax return: You don’t need a P85 if you fill in a UK tax return. If you are required to complete a UK self assessment tax return a P85 should not normally be requested by HMRC.
• Your national insurance number or NINO is shown on your payslips and other tax forms like a P45 and is specific to you.

A claim is possible without a national insurance number as long as certain other information is available.

How HMRC processes your claim

Once your claim reaches HMRC, their team reviews your submission for completeness and accuracy.

This verification process typically takes time—online submissions generally process faster than paper forms.

For standard P85 claims, expect to wait around 8-12 weeks, whereas more complex cases involving multiple tax years or incomplete documentation may take up to 16 weeks.

Throughout this period, HMRC checks your eligibility based on your provided information and verifies your tax payment records against their systems.

If HMRC needs additional information to process your claim, they’ll contact you directly. Immediately providing any requested documentation helps avoid unnecessary delays.

The status of your refund may appear as “pending” in your online tax account, indicating that your refund has been created but still awaits final approval and payment.

Leaving the UK tax refund and your P87

A form P87 or an HMRC online claim form is relevant if you have to claim tax back for employment expenses.

The P87 has to be completed separately to the P85 and sent either online or by post directly to HMRC.

It will go through a different process to your form P85 and can take a different timescale to complete depending on the nature of the expenses included in your claim.

The tax office will check your P87 and ask any questions (usually in writing) if they need to before calculating any overpayment of income tax for employment expenses.

Leaving the UK tax back if you complete a self assessment tax return

A self assessment tax return may be requested by HMRC for lot’s of different reasons.

If you have to complete a self assessment tax return in the UK you will need to complete your final tax return in the UK to allow for any overpayment of tax to be refunded.

The form P85 should not be needed if you complete a tax return with your tax return providing HMRC everything they need to refund any overpaid income tax.

A tax return can only be submitted after the current tax year ends which is on the 5th April each year.

This means that if you leave the UK during a current tax year you will need to wait until after the 5th April to submit your tax return to HMRC.

How will I be paid my UK tax refund?

The tax office will calculate any overpaid tax and produce a P800 form which explains in detail how they have calculated your refund.

The P800 is posted to the address they have on record and a breakdown should show in your personal tax account if you have one.

The P85 allows for you to enter your preference in how you would like to be paid. You can choose to receive a bank transfer to a UK bank account or receive a cheque.

In cases where you don’t have a personal UK bank account you can nominate someone else to receive your tax refund on your behalf.

What to do if your cheque goes missing

If your refund cheque gets lost, stolen, or expires, promptly contact HMRC to request a replacement. To initiate a reissue, you must:

• Inform HMRC about the missing cheque.
• Provide your name, tax reference number, address and contact details.
• Return any out-of-date or unused cheques you might have.

The most efficient way to request a replacement is through HMRC’s webchat facility (“Ask HMRC online”), which allows you to use translation tools if needed.

HMRC aims to resolve reissue requests promptly, thereby minimising inconvenience.

Leaving the UK Tax Frequently Answered Questions:

What is a P45 from your last UK employer? The P45 form serves as the cornerstone document for your tax rebate claim when leaving the UK. It records your earnings and tax paid in the current tax year, providing HMRC with proof of your contributions. Your employer automatically issues this document when you end your employment. Specifically, you’ll need to include parts 2 and 3 of your P45 when submitting your tax rebate application.

What is a national insurance number? Your National Insurance (NI) number uniquely identifies you within the UK tax system and remains essential for claiming tax rebates. This nine-digit code (formatted as two letters, six numbers, and one letter) appears on various official documents. If you’re struggling to locate your NI number, check previous wage slips, P60s, or other P45 forms you may have received. Including this number on your application speeds up the processing time considerably, as it allows HMRC to quickly access your tax records.

Can I be due a national insurance refund when I leave the UK? While you cannot claim back National Insurance contributions after leaving the UK, your previous NI payments might count toward benefits in your new country of residence. Regulations apply and your country of residence needs to maintain a social security agreement with the UK. Keeping records of your NI number and contributions remains valuable even after departure.

I have lost my P45 can I still claim? Lost your P45? Don’t panic. Although your former employer cannot issue a replacement P45, they can provide an alternative. Request a “statement of earnings” on company letterhead that shows your tax deductions. HMRC accepts this as proof when claiming your refund. If you can’t get a statement of earnings you can still submit your P85 to HMRC for review. Always make photocopies of your P45 before submission and consider sending your documents via registered post or another traceable method.

What if I am self-employed? Self-employed individuals face a different process. You must submit a Self Assessment tax return instead of form P85. This applies to freelancers, contractors, and anyone with income beyond standard PAYE employment. Essentially, this alternative method allows HMRC to accurately calculate your tax position based on your complete financial situation. Remember that self assessment returns must be filed between April 6th and the following January 31st to avoid penalties.

What happens if I return to the UK within the same tax year? On occasion, unforeseen circumstances might bring you back to the UK sooner than anticipated. Your tax rebate may be affected if you return before the tax year ends on April 5th and you might face additional tax liabilities depending on your situation.