The P85 form is an important document for individuals in the United Kingdom who are leaving the country to work or live abroad permanently or for an extended period. It is used to notify HM Revenue and Customs (HMRC) about the change in tax residency status and claim tax relief or tax refunds.
In this article, we will look at the P85 form’s purpose and relevance, the information needed to fill out the form, the procedure of submitting the form, and the benefits of utilizing the P85 form while leaving the UK. Understanding the P85 form is critical for persons migrating overseas since it guarantees correct tax management and permits potential tax refunds.
Table of Contents
What is the P85 Form?
HMRC provides the P85 form, popularly known as the “Leaving the UK – Getting your tax right” form. It is used to notify HMRC when a person is leaving the UK to work or reside abroad for a prolonged length of time or permanently.
Why is the P85 Form Important?
The P85 form is crucial because it helps individuals inform HMRC about their change in tax residency status. It ensures that they are no longer considered UK tax residents and are eligible for any applicable tax relief or tax refunds
Who Should Complete the P85 Form?
The P85 form should be completed by individuals who meet any of the following criteria:
Leaving the UK to work abroad for at least one full tax year.
Leaving the UK permanently.
Leaving the UK and do not plan to return for at least two years.
Also read: P87 Form
What Information is Required on the P85 Form?
Individuals must supply the following information while completing the P85 form:
Personal Details:
Full name, date of birth, National Insurance number, and contact information.
Leaving the UK Details:
Date of departure, intended length of stay abroad, and new address abroad.
Employment Details:
Information about current and previous employment in the UK, including employer names and addresses.
Tax Details:
Details of any income from UK sources, such as pensions, rental income, or self-employment.
Bank Account Details:
Information about UK bank accounts for any tax refunds.
How to Complete the P85 Form?
The P85 form can be completed in two ways:
Online: The most convenient approach is to fill out the form on the HMRC website. This enables individuals to electronically fill out the needed information and submit the form.
Paper Form:
If preferred, individuals can also obtain a physical copy of the P85 form from HMRC, complete it by hand, and mail it to the designated address provided on the form.
Where to Send the P85 Form?
The completed P85 form should be sent to the following address:
HM Revenue and Customs
Leaving the UK
BX9 1AS
United Kingdom
Benefits of Using the P85 Form:
Using the P85 form when leaving the UK offers several benefits:
Tax Relief: Individuals can claim tax relief on certain income, such as pensions, by completing the P85 form, allowing them to avoid paying tax in the UK while residing overseas.
Potential Tax Refunds: If a person overpaid tax in the UK before departing, they can get a tax refund by filling out the P85 form.
Correct Tax Treatment: The P85 form ensures that an individual’s tax affairs are properly managed and that they are no longer considered UK tax residents, avoiding any unnecessary tax obligations.
Notify Other Authorities: In addition to completing the P85 form, individuals should also inform other government agencies, such as the Department for Work and Pensions and the NHS, about their change in residency status.
Seek Professional Advice:
Relocating abroad can involve complex tax implications. It is advisable to seek professional advice from accountants or tax specialists who can provide guidance tailored to individual circumstances.
Keeping Records:
It is essential to maintain records of completed P85 forms, correspondence with HMRC, and any tax refunds received for future reference and proof of tax compliance.
Conclusion P85 Form :
The P85 form is essential for those leaving the UK to work or reside overseas. Individuals can tell HMRC about their change in tax resident status, seek tax relief, and perhaps earn tax refunds by completing and submitting the form. Understanding the purpose and procedure of the P85 form is critical for persons going overseas since it assures tax compliance and optimizes the benefits of their foreign ventures.
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