Leaving the UK? How to Claim Your Tax Refund with the P85 Form
Moving abroad permanently? You may be owed a tax refund. Learn how to use the P85 form to claim back overpaid Income Tax and manage your final UK financial steps.
Leaving the UK? How to Claim Your Tax Refund
When you leave the UK permanently, you don't have to leave your overpaid tax behind. Most leavers are entitled to a refund because HMRC calculates your monthly tax as if you will work for the full 12-month tax year.
If you leave mid-year, you likely haven't used your full £12,570 tax-free Personal Allowance, resulting in a significant overpayment.
Here is a complete guide to claiming your refund and managing your final UK financial steps.
1. The P85: Your "Exit" Form
The P85 is the primary document used to tell HMRC you are moving abroad and to claim back overpaid Income Tax.
Who Should Use It?
Anyone leaving the UK permanently or to work abroad for at least one full tax year, provided they do not usually complete a Self Assessment tax return.
How to File
- Online: Only available after you have physically left the UK. You will need a Government Gateway ID.
- By Post: Required if you are filing before you leave the UK. You must complete the form on-screen, print it, and post it to HMRC.
Essential Documents
You must include Parts 2 and 3 of your P45 (given to you by your last employer). If you don't have a P45, you must explain why on the form (e.g., you are continuing to work for a UK company abroad).
2. Receiving Your Refund (Cheque vs. Bank Transfer)
Historically, P85 refunds were only issued via sterling cheques posted to a UK or overseas address.
New for 2025/26
HMRC has introduced a UK bank transfer option for P85 refunds. After processing your form, they will send a letter with a reference code to your overseas address, which you can then use online to select a bank transfer.
Cheques
If you still receive a cheque, you can often deposit it via your UK bank's mobile app if you have kept the account open.
Processing Time
It typically takes 6 to 12 weeks for HMRC to process a P85 and issue a refund.
3. What Happens to Your UK Pension?
You do not have to move your pension just because you are leaving the UK.
Workplace & Personal Pensions
These can stay in the UK and continue to be invested. You can access them from age 55 (rising to 57 in 2028) regardless of where you live.
State Pension
You can still claim your UK State Pension abroad if you have at least 10 years of qualifying National Insurance contributions.
Warning: Your State Pension will be "frozen" (no annual increases) unless you move to a country with a reciprocal agreement, such as those in the EEA or the USA.
QROPS
You can transfer your fund to a Qualifying Recognised Overseas Pension Scheme (QROPS) to manage it in your new local currency, though this may trigger a 25% tax charge depending on where you move.
4. Final Exit Checklist
Before you leave the UK, make sure you've completed these essential steps:
- Notify HMRC: Submit your P85 and P45.
- Keep a UK Bank Account: Keeping your UK account open for at least 6 months after leaving makes receiving refunds and managing final bills much easier.
- National Insurance: You cannot claim back NI contributions, but they may count toward benefits in your new country if a social security agreement exists.
- Declare Ongoing Income: If you still have UK income (like rental property), you must continue to pay UK tax on that specific income.
Calculate Your Final Take-Home Pay
Before you leave, make sure you know exactly what your last paycheque will look like after Income Tax, National Insurance, and any pension deductions.
Our free calculator is updated for the 2025/26 tax year and includes all deductions.