Leaving the UK Checklist: Tax, Residency and Paperwork

If you are leaving the UK, the main tasks are to work out whether you will still be treated as a UK tax resident, tell HMRC that you are going, gather your P45 and the right claim form if you want to check for a refund, and deal with the paperwork for any UK limited company you own or direct. This checklist covers those points in the order most people meet them, based on guidance published on GOV.UK.

This is a general checklist and not tax advice. Your position depends on your circumstances, how long you will be away, where you are going and what you own. Rules and forms change, so check the current GOV.UK pages and speak to a qualified tax adviser before you rely on any of this.

Step 1: Work out your UK tax residence

Whether you pay UK tax on your worldwide income or only on your UK income depends on your residence status. GOV.UK explains that residents generally pay UK tax on their worldwide income, while non-residents pay UK tax only on their UK income.

Your status is decided by the Statutory Residence Test, which looks at the number of days you spend in the UK in a tax year, which runs from 6 April to 5 April, along with factors such as your home, your work and your ties to the UK. GOV.UK describes it in three parts:

Part of the test	What GOV.UK says, in summary
Overseas tests	You are usually non-resident if you spent fewer than 16 days in the UK (or fewer than 46 days if you were not UK resident in the previous three tax years), or if you worked full-time abroad (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, with no more than 30 of those days spent working
UK tests	You may be resident if you spent 183 or more days in the UK, if your only home was in the UK for 91 days or more in a row and you visited or stayed in it for at least 30 days of the tax year, or if you worked full-time in the UK for any period of 365 days with at least one day of it in the tax year
Sufficient ties test	You may be resident if you spent a certain number of days in the UK and have ties such as work or family in the UK

You are resident only if you meet at least one UK test or the sufficient ties test and none of the overseas tests. The detail is more involved than this summary, so use the full GOV.UK guidance or an adviser to apply it to your case.

Step 2: Consider split-year treatment

When you move abroad, the tax year in which you leave may be divided into a UK resident part and an overseas part. GOV.UK calls this split-year treatment. It does not apply to everyone, and conditions apply, for instance it is not available if you live abroad for less than a full tax year before returning to the UK. Your status can also change from year to year, for example if you change jobs, buy or sell a UK home, or your family moves.

Step 3: Tell HMRC

GOV.UK says you must tell HMRC if you are leaving the UK to live abroad permanently, going to work abroad full-time (including for a UK-based employer) for at least one full tax year, or are a foreign national leaving the UK. You do not need to tell HMRC if you are leaving for holidays or business trips.

How you do it depends on your tax situation.

If you...	GOV.UK says you generally use...
Do not usually file a Self Assessment tax return	Form P85
Already file a Self Assessment tax return	The residence section of the return (SA109), sent by post, because HMRC's online services cannot be used to tell them you are leaving
Are sending a Self Assessment return for the tax year you leave	You do not need to use P85
Will work full-time abroad for a UK-based employer for at least one full tax year	Form P85, as well as your Self Assessment return and SA109

If you use P85 and have already left the UK, you can claim online with a Government Gateway sign-in. If you have not yet left, GOV.UK says you must print and post the claim. The postal address given at the time of writing is Pay As You Earn, HM Revenue and Customs, BX9 1AS. Check the current page before posting.

Step 4: Gather your P45

GOV.UK says to have the "details of employee leaving work" section of your P45 to hand when you complete P85, and to include Parts 2 and 3 of your P45 if you have one. If you post your claim without a P45, GOV.UK asks you to say why, for example because you are retired. If you have no P45 because you are continuing to work for a UK company from abroad, you should still complete form P85. Ask your employer for your P45 when you stop working for them.

Step 5: Consider a tax refund

The P85 is the route to ask HMRC to check whether you are due a refund of UK income tax. GOV.UK says that, if a repayment is due, HMRC posts a payable order to your address or your nominee's, to be paid into a bank account held in your name or your nominee's. HMRC does not cover currency conversion or overseas transfer fees, and GOV.UK suggests keeping your UK bank account open until the repayment arrives. Whether you receive a refund depends on your individual circumstances.

Step 6: Understand what stays taxable in the UK

Becoming non-resident does not remove every UK tax obligation. GOV.UK notes you may still owe UK tax on UK income, such as rent from UK property. For capital gains, non-residents usually pay tax only on UK property or land, or if they return to the UK. Double taxation agreements with many countries are designed to help avoid being taxed twice, though how they apply depends on the countries involved. GOV.UK also warns that starting new activities in the UK, such as a business or buying property, could make you resident again, and that if you work full-time abroad you can usually visit the UK for up to 90 days, provided you work no more than 30 of those days there.

Step 7: Think about your UK limited company

If you own or direct a limited company, moving abroad raises questions that deserve proper advice. What GOV.UK confirms is that directors are legally responsible for the company's records, accounts and performance, including keeping company records, preparing annual accounts, completing and filing the Company Tax Return and paying Corporation Tax, even if they hire an accountant to handle daily tasks. Failing these duties can lead to fines, prosecution or disqualification as a director.

Moving abroad does not remove those duties. Questions such as whether you can continue as a director from overseas, how the company's own tax position is affected and how your pay or dividends will be treated need advice from a qualified accountant or company formation adviser who knows both the UK rules and those of the country you are moving to.

A short checklist to keep

Task	Done?
Check your likely residence status under the Statutory Residence Test
Note the date you plan to leave and whether split-year treatment may apply
Ask your employer for your P45
Decide whether to use P85 or the residence section of your Self Assessment return
Tell HMRC that you are leaving
Keep your UK bank account open until any refund arrives
Review UK income that may remain taxable, such as rental income
Speak to an adviser about any limited company you own or direct
Check the tax rules in the country you are moving to

For advisers

A clear checklist like this works well as a lead magnet for expat tax advisers and company formation advisers, because people search for it before they speak to anyone. Gatedleads lets you build a branded page for it that is live in under 10 minutes, with leads downloadable as a CSV. See our posts on lead magnets for expat tax advisers and lead magnets for company formation advisers, and our guide to creating a checklist lead magnet.

Frequently asked questions

Do I have to tell HMRC if I leave the UK?

GOV.UK says you must tell HMRC if you are leaving to live abroad permanently, going to work abroad full-time for at least one full tax year, or are a foreign national leaving the UK. You do not need to tell them about holidays or business trips.

What is form P85?

It is the form used to tell HMRC you are leaving the UK and to ask them to check for a tax refund, if you do not usually file a Self Assessment return.

Do I stop being a UK tax resident the day I leave?

Not automatically. Your status depends on the Statutory Residence Test, and split-year treatment may apply in the year you leave. An adviser can apply the rules to your facts.

What happens to my UK limited company if I move abroad?

Directors remain responsible for the company's records, accounts and tax filings. Other questions depend on your circumstances, so speak to a qualified adviser.