NOT financial advice - seek advice from a professional for your specific situation

    TaxKilnUK tax guidance
    TaxKilnUK tax guidance

    Moving Abroad → Leaving-UK procedures

    Leaving the UK — P85, SA109 Split-Year, NRL1, NT Code

    Leaving the UK doesn't involve a single 'departure declaration'. The procedural mechanics depend on your pre-departure tax profile: file P85 if you've overpaid PAYE; submit NRL1 if you're a UK landlord; complete your final SA with SA109 split-year claim if in Self Assessment; apply for NT (No Tax) code on UK pension via DT-Individual where DTA applies; update your address with HMRC. All self-serve via gov.uk; no specialist required for standard cases.

    Last reviewed:

    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    In plain English

    There is no single 'I'm leaving the UK' form. What you do depends on what's in your pre-departure tax life. If your only UK source is employment + you've had PAYE withheld for the full year but you leave mid-year, P85 triggers a refund of the over-withholding. If you're in Self Assessment, P85 is redundant — you handle everything through your final SA with the SA109 supplementary form claiming split-year treatment. If you're letting UK property after you leave, file NRL1 so your agent/tenant pays you gross rather than withholding 20%. If you'll continue drawing a UK pension under a DTA that exempts it from UK tax, apply for an NT code so no UK tax is withheld at source. Keep your UTR. Update your address with HMRC. Don't assume PAYE = no further filing obligation — non-resident UK landlords + non-resident UK directors + people with UK source income above certain thresholds continue to need SA.

    How it works

    P85 — PAYE refund mechanics

    File online via gov.uk if: you've paid UK tax through PAYE in the year of departure AND you're leaving and won't return as a UK resident in the rest of the tax year. P85 is NOT needed if you're already in Self Assessment — the same information goes through your SA return. What happens: HMRC reviews your year-to-date PAYE, calculates the refund based on your unused Personal Allowance and bands, and issues a refund (to UK bank account or by cheque to your overseas address). Processing typically 4-8 weeks. No specialist fee needed.

    Final SA + SA109 split-year claim

    If you're in Self Assessment: file your normal SA100 for the year of departure, plus SA109 (Residence, remittance basis etc.) supplementary form claiming the relevant split-year case. Deadline = 31 January following the end of the tax year (paper) / 31 January (online filing). SA109 box 3 records split-year case claimed (1-8). You also disclose: number of UK days, departure date, any ties under SRT, country of residence after departure. If you've had no UK source income post-departure, the SA closes the year cleanly. If you have ongoing UK rental etc., expect SA to continue.

    NRL1 — non-resident landlord scheme

    Statutory withholding regime under Taxation of Income from Land (Non-residents) Regulations 1995 SI 1995/2902. Default position: where the landlord is non-UK-resident, the letting agent (or tenant if no agent + rent >£100/week) deducts 20% basic-rate tax from rent + accounts to HMRC quarterly. File NRL1 to opt OUT of withholding + receive gross rent. HMRC requires undertaking to comply with UK SA + tax payable on rental profit. Approval 8-12 weeks. You still file SA on UK rental — Section 24 mortgage interest restriction applies equally to non-residents. Personal Allowance may be available depending on nationality + DTA (UK + EEA nationals + most treaty residents qualify).

    NT code for UK pension — DT-Individual mechanics

    Most UK private pensions remain UK-taxable for non-residents under domestic law (UK source income). Many DTAs allocate taxing rights on private pensions exclusively to the country of residence — in which case you can apply for NT (No Tax) PAYE code on the UK pension so the provider pays gross. Process: complete DT-Individual form (specific to country of residence — e.g. DT-Individual France, DT-Individual Spain), get it stamped by your country-of-residence tax authority confirming residence, send to HMRC. HMRC issues NT code to UK pension provider. Government service pensions are usually carved OUT of DTA pension articles (taxable only in paying state) — see Article 19 OECD Model. Apply only after you're tax-resident in destination + can certify it.

    Who this applies to + key conditions

    Statute + manual references

    Primary: Finance Act 2013 Schedule 45 (split-year provisions); ITA 2007 ss.7-12 (notification of liability)

    Related: Income Tax (Construction Industry Scheme) Regulations 2005 SI 2005/2045 (for CIS subcontractors); Income Tax (Pay As You Earn) Regulations 2003 SI 2003/2682 (P85 + PAYE mechanics)

    HMRC manual: RFIG + Self Assessment Manual (SAM) + PAYE Manual (PAYE81000)

    Common mistakes + traps

    Worked example

    Emma, Manchester graphic designer + Ltd-director, emigrates to Portugal mid-tax-year

    Emma leaves the UK on 30 September 2025. She's a Ltd-director with director's salary + dividends + a £160k UK rental flat. She lets the UK flat from October 2025 through a letting agent.

    1. Step 1 — SRT split-year analysis: Case 3 (ceasing to have UK home) — Emma rents out her flat with no other UK home. Split-year applies; UK part to 30 September; overseas part from 1 October.
    2. Step 2 — P85: not needed because Emma is in SA already (Ltd-director).
    3. Step 3 — SA109 in 2025/26 SA return: claim Case 3 split-year. Discloses departure date, overseas country, days in UK.
    4. Step 4 — NRL1 filed October 2025: agent processes rent gross from approval. Until approval, agent withholds 20%.
    5. Step 5 — Ongoing SA: Emma continues to file SA each year for UK rental income (Section 24 applies; rental profit taxed at non-resident rates with Personal Allowance if she qualifies).

    Outcome: Emma's 2025/26 SA combines director income to 30 Sept (UK-resident) + rental income gross from agent + claim Case 3 split-year. No P85. Ongoing SA each year for UK rental until property disposal or letting ceases.

    How this connects to the rest of the framework

    Statutory Residence Test →

    SA109 split-year claim depends on the SRT leaver cases (1, 2, or 3) being satisfied per Schedule 45 Part 3.

    UK source income (non-resident) →

    NRL scheme is the procedural delivery for UK rental income; Section 24 + disregarded income mechanics cover the substantive tax treatment.

    NI + State Pension abroad →

    If you want to maintain voluntary Class 2/3 NI after leaving, file CF83 alongside or after the SA109/P85 procedural sequence.

    Frequently asked questions

    What happens if I miss the Self Assessment deadline?+
    The Self Assessment deadline is 31 January (online filing) for the previous tax year. Miss it and HMRC apply an automatic £100 penalty. Beyond that: £10 per day from 3 months late (capped at £900), 5% of tax due at 6 months late, and another 5% at 12 months late, under Schedule 55 of the Taxes Management Act 1970. If you have a genuine reason (serious illness, bereavement, technical issue with HMRC's systems) you can appeal with evidence; HMRC accepts reasonable excuse appeals in most genuine cases.
    Do I need an accountant or can I file Self Assessment myself?+
    Legally you can file Self Assessment yourself via gov.uk for free, most simple sole-trader returns (single income source, basic expenses) are realistic to self-file. An accountant adds real value when: your trading profit is above £40,000 (extraction-strategy decisions matter), you have multiple income streams (PAYE + self-employment + property + dividends), you've crossed the £90,000 VAT threshold, you're considering incorporation, or you have an HMRC enquiry. Expect to pay £400-£1,500/year for a typical sole-trader accountant; the cost is itself a deductible expense.
    How do payments on account work?+
    When your Self Assessment tax bill exceeds £1,000 for the first time, HMRC requires payments on account toward NEXT year's tax. Half the current bill is due 31 January (alongside the current bill); the other half is due 31 July. So your first January after crossing the threshold can hit with a double-bill: last year's balance + first payment on account. Adjust via Form SA303 if you expect next year's income to drop substantially. Payments on account don't apply if more than 80% of your tax is collected via PAYE.
    Do I need to formally tell HMRC I'm leaving the UK?+
    No formal 'departure notification' is required. Updating your address with HMRC is strongly recommended (penalty notices otherwise go to your UK address + accumulate interest). P85 is the closest thing to a 'departure form' but it's only useful for PAYE refund claims and is redundant if you're already in Self Assessment.
    What if I'm in Self Assessment when I leave?+
    P85 is unnecessary — everything goes through SA. File your final SA for the year of departure with SA109 claiming the relevant split-year case. SA continues for any ongoing UK source income (rental, UK directorships with UK duties, certain UK pensions). Retain your UTR — you'll need it indefinitely for any future UK filing or State Pension claim.
    How do I get a UK PAYE refund after I leave?+
    P85 mechanism. File online via gov.uk after departure. HMRC reviews your year-to-date PAYE, recalculates using full Personal Allowance (and split-year if applicable), and issues a refund. Payment options: UK bank transfer (fastest), cheque to overseas address, or nominate a UK third party. From 2025/26, UK bank transfer is the standard digital refund route.
    What about my UK Self Assessment after I leave?+
    SA continues if you have UK source income that triggers filing thresholds — UK rental (almost always), UK self-employment from UK workdays, untaxed UK income above £1,000, capital gains over the AEA on UK assets, UK dividends above the disregarded-income cap mechanics in certain edge cases. NRCGT 60-day filing is separate from annual SA. See /moving-abroad/uk-source-income-non-resident.

    Free + regulated-body resources

    Last reviewed: