What is a P85 form and how do I claim a tax refund when leaving the UK?

Full answer

You file a P85 if you leave the UK to live abroad or to work full-time abroad for at least one full tax year. It tells HMRC your departure date so it can decide your residence status and check whether you are owed a refund. You do not need a P85 if you normally file a Self Assessment return - you report the departure there instead. How the refund arises: PAYE assumes you earn evenly all year, so your Personal Allowance (GBP 12,570 for 2026/27) is released month by month. If you leave in, say, July, you have only used a few months of pay but PAYE may have taxed you as if more allowance was due later. HMRC recomputes the year, applies the full allowance against your actual UK earnings, and repays the difference. Worked example: you earn GBP 30,000 a year (GBP 2,500/month) and leave after three months, having earned GBP 7,500. PAYE may have deducted tax in those months, but GBP 7,500 is below the GBP 12,570 allowance, so the correct tax is GBP 0 and the deducted amount is refunded. To claim, submit the P85 online via your Government Gateway account, attaching the P45 parts 2 and 3 from your final employer. If you keep working for a UK employer abroad, different rules apply. Refunds are paid to a UK bank account, by cheque, or to a nominee. For 2026/27 the allowance and bands are frozen, so the timing of your departure is what drives the refund size. Estimate your annual position with the income tax calculator to see roughly how much UK tax you should have paid on your part-year earnings.

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