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.

How much UK tax back could you get? Example calculations

The amount of your leaving UK tax refund depends on your earnings, the tax you paid, and when you left the UK during the tax year.

Example 1: Seasonal worker earning below the personal allowance

Maria works in the UK from May to August 2025, earning £8,000 total. Her employer deducted approximately £400 in tax using an emergency tax code.

Because her total UK earnings are below the personal allowance of £12,570 for 2025/26, her actual tax liability is £0. Maria would receive a full refund of the £400 she paid.

Example 2: Employee leaving mid-year

James earns £3,000 per month and leaves the UK on 30 September 2025 after working since April.

• His total UK earnings for the year (April to September): £18,000
• Tax paid through PAYE: approximately £1,086
• Actual tax due: £18,000 – £12,570 = £5,430 taxable at 20% = £1,086

James has paid roughly the correct amount because his earnings are high enough to use his full personal allowance. His refund would be minimal.

Example 3: Worker on an emergency tax code

Sophie starts a new UK job in January 2025 and is placed on an emergency tax code. She earns £10,000 before leaving in March 2025.

• Tax deducted on emergency code: approximately £600
• Actual tax due for the year: £0 (earnings below personal allowance)
• Sophie would receive a full refund of £600

The pattern is clear: the further below the personal allowance your total UK earnings fall, the larger your refund is likely to be.

Emergency tax codes amplify this further because they do not account for your full personal allowance entitlement.

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.

Important: HMRC payment limitations for P85 refunds

If you are claiming through form P85, there is an important practical limitation to be aware of regarding how HMRC pays your refund.

Cheque payments

For P85 claims, HMRC currently issues refunds by cheque in pounds sterling. The cheque can be posted to your UK address or to your nominee’s address in the UK.

Most cheques can only be paid into a UK bank account held in your name or your nominee’s name.

Keep your UK bank account open

The simplest approach is to keep your UK bank account open until you receive your refund cheque. Once received you can:

• Pay the cheque into your UK account
• Transfer the funds to your overseas account electronically
• Some UK banks allow you to deposit cheques via their mobile app which can help if you are already overseas

It could be a good idea to keep your account open for at least 3-4 months after submitting your P85 to HMRC.

Nominating someone to receive your refund

If you cannot keep a UK bank account open, you can nominate someone in the UK to receive the refund on your behalf.

On form P85 you can provide your nominee’s name and UK address. HMRC will make the cheque payable to your nominee who can then deposit it and transfer the money to you.

Choose a trusted friend or family member as your nominee.

Future bank transfer option

HMRC has indicated they plan to introduce a UK bank transfer option for P85 refunds.

Under the proposed system HMRC will send a letter with a special reference to your overseas address which you input into an online service to select your preferred payment method.

Check gov.uk for updates on when this service becomes available.

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.

National Insurance when leaving the UK

No refunds on NI contributions

Unlike income tax, you cannot claim back National Insurance contributions you have paid in the UK. There is no refund mechanism for NI.

Social security agreements may protect your contributions

However your UK NI contributions may count toward benefits in your new country if there is a social security agreement between the UK and that country.

Countries with agreements include all EU and EEA countries, the USA, Canada, Australia and many others. Contact the International Pension Centre for details.

Voluntary contributions to protect your State Pension

You may be able to continue paying voluntary NI contributions while abroad to protect your UK State Pension entitlement. Class 3 voluntary contributions cost £17.45 per week in 2025/26.

You have up to 6 years to fill gaps in your NI record so this does not need to be decided immediately.

If you have ongoing UK income after leaving

Many people who leave the UK still have UK income sources that require ongoing attention.

UK rental property

If you let out UK property after leaving you become a non-resident landlord.

Your letting agent or tenant must deduct 20% basic rate tax from your rent under the Non-Resident Landlord Scheme unless you apply to receive rent gross by completing form NRL1.

You must register for Self Assessment and file annual tax returns. Form P85 alone is not sufficient for non-resident landlords.

UK pension income

If you receive a UK pension after leaving it may still be taxable in the UK.

A double taxation treaty between the UK and your destination country may allow your pension to be taxed only where you live.

State pensions are usually taxable only in your country of residence under most treaties. Check the specific treaty for your destination country on gov.uk.

Capital gains tax

If you sell UK property while living abroad you may owe UK Capital Gains Tax. Non-residents have been liable for CGT on UK property sales since April 2015.

You must report and pay any CGT within 60 days of completing the sale.

If you sell other UK assets within five years of leaving you may also face CGT under the temporary non-residence rules.

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.

Can HMRC transfer my refund to an overseas bank account?

Currently HMRC does not pay P85 refunds to overseas bank accounts or by bank transfer. Refunds are issued by cheque in pounds sterling only. Keep your UK bank account open to deposit the cheque or nominate someone in the UK to receive payment on your behalf. HMRC has indicated they plan to introduce a bank transfer option in the future.

What is split year treatment and does it apply to me?

Split year treatment divides the tax year into a UK resident period and an overseas period. If you qualify you are only taxed on worldwide income during the UK part. This can reduce your UK tax bill significantly in the year you leave. The most common qualifying situation is starting full-time work abroad for at least one complete tax year. Read our full split year treatment guide (https://www.taxrebateservices.co.uk/split-year-treatment/) for details.

I have a UK rental property. Do I still need to complete form P85?

You should still complete a P85 to notify HMRC of your departure but you will also need to register as a non-resident landlord and file Self Assessment tax returns each year. Form P85 alone is not sufficient if you have UK rental income. See our non-resident landlord guide (https://www.taxrebateservices.co.uk/tax-faqs/uk-landlord-faqs/leaving-uk-and-letting-property/) for the full requirements.

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.