Once again, I failed at getting the system to successfully provide me with a functioning Government Gateway ID and password (grr) but I completed the postal form easily enough, and will guide you through the process with this experience.
You can complete a P85 form if:
- You’ve lived and worked in the UK
- You’re leaving for good, or more than one complete tax year (April to April)
- You’re not filling out a Self Assessment tax return for your final year in the UK
What you’ll need
- Your most recent P45 (I explain what that is here)
- A postal address for your cheque (what century is this?)
Let’s get started…
Determine your UK Residency Status
Head to the gov.uk website and follow the guidance in the “RDR3 Statutory Residence Test” to work out if you’re resident or non-resident in the UK for the current tax year.
This will have implications for who you pay tax to.
If you’re deemed resident in the UK in that year, you may have to pay the HMRC tax on any income you earn in your home country up until the 5th of April (the end of the UK tax year). For example if you return home in February and go back to work in your old physiotherapy job, the HMRC will calculate your income tax owed based on your income in the UK AND the income you earn in your home country up until the 5th of April.
Does this mean you’re taxed twice? Generally no. Keep in mind that your home country may have a Double Taxation Agreement (DTA) with the UK, which ensures you don’t pay tax twice (which I try to explain in this article). Find out about your country’s DTA at the gov.uk website.
If you’re deemed non-resident, you won’t pay any tax on your earnings outside the UK. Simple.
Filling in your P85 form
If you managed to wade your way through that, then you can move on to actually filling out the P85. As I said I used the print and post form, which you can see below: