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UK Tax Refunds for People Leaving the UK or Living Abroad

  • Writer: James
    James
  • Jul 15
  • 4 min read
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If you’ve had tax deducted at source through the Pay As You Earn (PAYE) system in the tax year you leave the UK, you may be entitled to a tax refund. This also applies to seasonal migrant workers who have worked in the UK and are now leaving. Foundry Accounting Limited can assist you in navigating the refund process to ensure you receive the maximum refund you’re entitled to, efficiently and professionally.


Introduction


If you paid tax under PAYE during the tax year in which you leave the UK, you may be eligible for a tax refund. The UK personal allowance (£12,570 for the 2025/26 tax year) is typically spread across the entire year, meaning you receive a portion with each payment. If you work only part of the tax year or leave the UK mid-year, you may not have used your full tax-free allowance, resulting in overpaid tax.


This guide focuses on income tax refunds. Refunds for National Insurance Contributions (NICs) are generally not available when leaving the UK—refer to our NICs in Cross-Border Situations page for details. For information on VAT refunds when leaving the UK, see our dedicated VAT refunds page.


Form P85 is suitable for individuals leaving the UK, including short-term workers such as seasonal migrant workers. For guidance on completing Form P85, visit our P85: Get Your Income Tax Right If You Leave the UK page. You should not complete Form P85 if HM Revenue and Customs (HMRC) has already requested a Self Assessment tax return for the year you leave, unless you’re working abroad for a UK employer and will not pay UK tax on those earnings. In such cases, HMRC may require Form P85 to issue an NT (no tax) code.


How to Apply


Form P85 can be submitted online via the Government Gateway or completed on-screen, printed, and posted. If you haven’t yet left the UK, you must print and post the form. To access Form P85, visit GOV.UK and scroll to the Claim by Post section under Ways to Claim. Unfortunately, blank forms are no longer available for manual download from GOV.UK.


If you have a P45 form from your employer, include parts 2 and 3 with your P85 submission to HMRC. Always keep a copy of the completed P85 form and, if posting, send it via recorded delivery. Retain copies of the P45 parts sent, as employers cannot reissue originals but may provide an income statement on headed paper as proof of tax deductions if needed.


Information Required


Form P85 requires the following details:


  1. Your last UK address;

  2. Your contact address abroad;

  3. The date you left the UK;

  4. The number of years you lived in the UK;

  5. The number of days you plan to spend in the UK in each of the next three tax years;

  6. Details of any overseas employment;

  7. Details of any UK work duties you plan to undertake while abroad.


If you lose your P45, your former employer can provide an income statement, which can be used to support your refund claim if necessary.


Deadline


There is no legal deadline for submitting Form P85, as it is not mandatory. However, if HMRC has not issued a tax return for the year you leave and you owe tax, you must notify HMRC by 5 October following the end of that tax year.


Getting a Refund


If you’re entitled to a refund, HMRC will issue a cheque in pounds sterling, sent to you or a trusted person you nominate. Currently, HMRC does not process P85 refunds via bank transfer, though this option may become available from autumn 2025.


Receiving a cheque abroad can be challenging. To cash it, you’ll need to:


  • Keep your UK bank account open to deposit the cheque, or

  • Use your UK bank’s digital app to cash it (if available, depending on the cheque’s value), or

  • Send the cheque to your UK bank by post.


If your overseas bank agrees to cash a sterling cheque, they may charge a fee, which is uncommon. For non-Latin alphabets (e.g., Cyrillic), write your address in Latin characters on Form P85 to avoid issues. Use tracked or signed international mail for reliability.


Alternatively, you can:


  • Request HMRC to send the cheque (in your name) to a trusted person in the UK, who can deposit it on your behalf or forward it via secure international post; or

  • Ask HMRC to issue the cheque in the name of a trusted UK-based friend or family member, who can deposit it and transfer the funds to you.


If Your Cheque Goes Missing


If your cheque is lost in the post, contact HMRC via webchat to request a reissue. Translation tools can assist if needed.


If You Don’t File a P85 Form or Tax Return


If you don’t submit a P85 form or Self Assessment tax return for the year you leave, but HMRC’s PAYE records indicate you’re due a refund, they will send a P800 tax calculation to your recorded address. Unlike P85 refunds, P800 refunds can be paid via bank transfer.


If You Receive a Refund and Then File a Tax Return


If you receive a refund via Form P85 or P800 and later file a Self Assessment tax return for the same year, include the refund amount in box 1 of page TR6 (Tax Refunded or Credited) on the paper return to ensure accurate tax calculations.


How Foundry Accounting Limited Can Help


Foundry Accounting Limited specialises in assisting individuals leaving the UK or living abroad with their tax refunds. Our accountants ensure a seamless process, offering:


  • Expert guidance on completing Form P85;

  • Support in gathering necessary documents, even if you lack a P45;

  • Timely submission to HMRC to maximise your refund;

  • Advice on managing cheque payments abroad, including options for non-Latin alphabet addresses;

  • Remote services for clients worldwide.


Contact us via email, post, or telephone to start your refund process or discuss your tax situation. We’re here to make your UK tax refund straightforward and efficient.



 
 
 

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