HMRC Considerations When Moving Away From the UK

If you are leaving the UK to live in another country, you need to notify HMRC about your change in residency status.

You must fill out Form P85 ("Leaving the UK – getting your tax right") to inform HMRC about your departure. This helps them determine your tax residency status and handle your tax affairs correctly.

The form asks for details like your departure date, whether you're leaving the UK permanently or temporarily, and information about your income.

Update your address and other personal details with HMRC through your online Personal Tax Account or by contacting them directly. This is important for future correspondence, especially regarding tax returns, refunds, and National Insurance contributions.

If you are already filing a Self-Assessment tax return, you may still need to file for the tax year you leave, reporting any UK income or capital gains.

If you become a non-UK resident, you may still have tax obligations on UK-sourced income, like rental income or earnings from UK work.

You may need to consider continuing to pay National Insurance contributions to protect your State Pension if you plan to return or if you want to qualify for UK benefits.

This is a personal decision, and you need to weigh up making personal pension contributions versus paying NI and where you will be retiring.

HMRC uses the Statutory Residence Test (SRT) to determine your tax residency status. Your tax obligations in the UK depend on whether you are considered a UK resident or non-resident for tax purposes.

It is important to keep records of all your correspondence with HMRC and to review the impact on any pensions or financial arrangements you have in the UK.

As ever, if you have any questions regarding this tricky area of accounting, please get in touch and we’ll be happy to help!