Fill Out Your P85 Form

What is the purpose of the P85 form?

The P85 form is used to claim tax relief or a repayment of tax for individuals who have lived or worked in the UK and are leaving the country. This form is particularly relevant for those who may not return or who will be working abroad full-time for at least one complete tax year. It is essential for those transitioning out of UK residency to ensure that any overpayment of tax can be refunded appropriately.

Who should fill out the P85 form?

This form is intended for people who are officially leaving the UK and will not be returning, or who are moving abroad for work and will not be in the UK for a full tax year. It is important to note that individuals who are simply going on holiday or taking short business trips do not need to complete this form. Additionally, if a Self Assessment tax return is already required for the tax year of departure, the P85 should not be submitted.

What information do I need to provide when completing the P85 form?

To properly complete the P85 form, you will need basic personal information such as your name, date of birth, and address in the UK. It is also essential to provide your National Insurance number, if applicable. Details of your departure date, the country you are moving to, and information about any income you will still receive from the UK will also be required. If you have received a P45 from your employer, you should include those parts with your submission.

How will I receive any tax repayment due to me?

If you are eligible for a repayment, you may choose how to receive it. The P85 allows you to select a payment into a UK bank account or a cheque made payable to yourself or a nominee. It is crucial to fill in the appropriate section carefully to ensure that the repayment is processed correctly and efficiently. If you are outside the UK, you must be aware that not all banks can facilitate payments, so ensure to check your preferred method.

Filling out the P85 form can be challenging, and many people make mistakes that can lead to delays or issues with their tax relief or refund. One common error is not using capital letters for names and addresses. When details are unclear or improperly formatted, it can slow down the processing of your claim.

Another mistake to avoid is failing to provide accurate dates. This includes the date of birth and the date of leaving the UK. If these dates are incorrect, it can create confusion and lead to further complications in your tax filings. Additionally, people often forget to attach their P45 forms, or they may send photocopies instead of the original document.

Some also overlook the importance of specifying their residency status in the tax years leading up to their departure. Providing inaccurate information regarding residency can lead to incorrect assessments of your tax obligation, which may have serious implications for future tax filings.

Another frequent error involves underestimating how many days one will spend in the UK during the subsequent tax years. Providing estimates that are either too high or too low can impact the outcome of your claim.

People sometimes neglect to indicate whether they will be working full-time outside the UK. This information is crucial for the claim process, and omitting it can lead to delays. Also, some may fail to specify how they would like their refund processed, whether through a UK bank or via cheque to a nominee. Not making a choice can result in a return that doesn’t reach you.

Overseeing the income section can also pose problems. Many individuals mistakenly believe they do not have any income from the UK after leaving, overlooking rental properties or dividends. Providing complete income information is vital to ensure that your tax obligations are correctly calculated.

Additionally, some mistakenly believe they can leave out their National Insurance number. This number is crucial for identification and can affect the speed at which your claims are processed. If you do not have one, it’s important to explain why in the form.

Communication errors can occur as well. Leaving the phone number section blank can hinder potential contact from tax officials who may need clarification on your application. Finally, failing to read the declaration carefully before signing can lead to unintentional inaccuracies. It's essential to understand that signing the form means you agree with all the information provided.

When navigating the process of leaving the UK and addressing tax matters, you may encounter several important documents beyond the P85 form. Each of these documents plays a vital role in ensuring that your tax obligations are met and that you can correctly claim any reliefs or repayments due to your situation. Here's a list of commonly associated forms and documents:

• P45: This form details the tax you've paid on your income while in employment. Your employer provides it when you leave, and it's essential for filing your tax claims.
• P60: Issued at the end of the tax year, this document summarizes your total earnings and the tax paid, serving as a useful reference for your tax status when leaving the UK.
• Self Assessment Tax Return: If you've completed one for the tax year that you leave, it provides the HMRC with an overview of your income and taxes due, which can influence your tax claim.
• P85S: Similar to the P85, this short form is used specifically for individuals claiming tax refunds without leaving the UK permanently, but its guidelines can guide those moving abroad.
• Form R43: This is applicable if you are claiming tax relief on pension income received from the UK after moving abroad, allowing you to specify the amount and your tax residency status.
• Tax Residence Certificate: Often required by foreign tax authorities, this certificate confirms your tax residency in the UK and helps avoid double taxation.
• Non-Resident Landlords Scheme (NRL): If you earn rental income from UK property after moving, registering under this tax scheme is necessary for tax treatment of your income.
• P86: This form is needed if you are a UK resident who earns income abroad, helping to explain your tax situation to HMRC.
• Crown Servants Tax Return: If you're a Crown servant, this is an important document providing specific guidance on how to file your tax return while serving abroad.
• Form SA106: This additional form supplements the Self Assessment, providing details on foreign income, crucial for individuals with multi-country financial interests.

These documents, when collected and filled out correctly, play a crucial role in smoothening your transition and ensuring that your tax matters are settled before leaving the UK. Understanding each form's purpose can make the process less daunting and more manageable.

• P45: This form is used to report the details when you leave a job. Like the P85, it provides important information about your income and tax deductions during your employment in the UK.
• Self Assessment Tax Return: If you are self-employed or have complex tax affairs, you will need to complete this return. Similar to the P85, it helps determine your tax obligation and any refunds due.
• P60: This document summarizes your annual earnings and tax deductions at the end of the tax year. It serves a similar purpose as the P85: providing information needed for tax assessments.
• NT (No Tax) Code Notification: This form tells HMRC that you are not liable to pay tax on your income. Like the P85, it deals with tax obligations when your residency status changes.
• Tax Refund Claim Form (R40): You can use this form to claim a tax refund if you believe you have overpaid tax. This is akin to the P85 in that it addresses refund issues and tax status outside of the UK.
• Residence Tax Return: This form details your residency status for tax purposes. Similar to the P85, it reveals how residency affects your tax filings and potential reliefs.
• Form SRT (Statutory Residence Test): This form assesses your residency status based on various factors. Much like the P85, it helps determine tax liabilities based on where you live and work.

When filling out the P85 form, there are essential points to keep in mind. Here are four things you should and shouldn’t do:

• Do: Ensure you have your P45 form if applicable. It’s crucial for processing your claim.
• Do: Use capital letters when entering your name and address to avoid any misunderstandings.
• Do: Respond to every question honestly and accurately. Incomplete forms can delay your process.
• Do: Make sure your contact information is current so that the tax office can reach you if needed.

• Don’t: Fill out the form if you plan to return to the UK shortly. This form is for those leaving long-term.
• Don’t: Forget to provide all required supporting documents. Missing documentation can lead to complications.
• Don’t: Use estimates for income unless you genuinely do not know the amount. Be as precise as possible.
• Don’t: Send photocopies of your P45. Always submit the original to ensure processing accuracy.

• Misconception 1: The P85 form is meant for all individuals leaving the UK.

This form is specifically designed for those who have lived or worked in the UK and are leaving the UK for an extended period, potentially not returning. It is not intended for individuals going abroad temporarily, such as for vacations or short business trips.

• Misconception 2: You must fill out the P85 form if you are leaving for a short holiday.

Only individuals who are leaving the UK and will not be returning for at least one complete tax year should complete this form. Short trips do not require a P85 submission.

• Misconception 3: The P85 form guarantees a tax refund.

Filling out the P85 does not guarantee that a refund will be issued. Whether or not a refund is provided depends on individual tax circumstances and the information provided on the form.

• Misconception 4: You can submit the P85 form at any time after leaving the UK.

The P85 form should be submitted as soon as possible after leaving the UK. Delaying the submission may complicate the process of obtaining any potential tax relief or refund.

• Misconception 5: A P45 is not needed to complete the P85 form.

The P45, which provides details of your employment, is an essential document when filling out the P85. Without it, your claim may be incomplete, and any refund cannot be processed.

• Misconception 6: You cannot report further income from the UK after leaving.

Individuals who continue to receive income from the UK after leaving must report this on the P85 form. This includes income from properties, pensions, and other sources, which may still be subject to UK tax.

When it comes to filling out the P85 form, understanding a few key points can make the process smoother. Here are essential takeaways to keep in mind:

• Purpose of the P85: This form is for individuals who have lived or worked in the UK and are leaving the country, either permanently or for full-time work abroad for at least one tax year.
• Not for Short Trips: If you typically live in the UK and are just going on holiday or taking a short business trip, do not fill out this form.
• Required Documents: Before filling out the P85, gather your P45, which your employer provides when you leave your job. This document will contain crucial information about your employment status.
• Residential Status: You will need to answer questions about your residency status concerning the UK for the tax years involved. This information helps determine your tax liability.
• Expectations of UK Visits: Be prepared to provide estimates of how many days you plan to spend in the UK in the upcoming tax years after leaving.
• Income Reporting: If you will receive any income from the UK after leaving, detail it on the form. This can include rent, pensions, or any other earnings.
• Refund Options: If you’re due a tax refund, choose how you want it paid: to a UK bank account or via cheque.

Completing the P85 accurately is important for ensuring you receive any tax relief or refund due to you. Make sure to review your information before sending the form to the appropriate tax office. Following these key points can help you navigate the process with ease.