P85 vs Self Assessment When Leaving the UK 2026: Which to File

When leaving the UK, the question is rarely "P85 OR Self Assessment" - for many leavers it's "P85 AND Self Assessment". This guide walks through which form covers what, when both are needed, and the common mistakes that delay refunds or trigger HMRC enquiries.

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Quick decision tree

Are you leaving the UK to live or work abroad for at least one full UK tax year?
│
├─ NO  → No P85 needed. File Self Assessment if you normally do.
│
└─ YES → File P85.
        │
        Were you required to file Self Assessment for the year you left
        (self-employed income, rental income, foreign income, dividends
        above £500, capital gains above £3,000, income above £150,000,
        or trustee/director situations)?
        │
        ├─ NO  → P85 alone is sufficient.
        │
        └─ YES → File BOTH P85 (notifies HMRC of departure) AND Self
                 Assessment for the leaving year (captures the full
                 income picture).

What P85 does

The P85 tells HMRC:

The date you left the UK.
Your destination country.
Whether you intend to be UK-resident going forward.
Final UK employer + pay details.
Your foreign address for correspondence.

HMRC then:

Calculates split-year tax for the leaving year.
Processes any simple PAYE refund from unused Personal Allowance.
Updates your record to non-UK-resident.

P85 alone is sufficient for simple PAYE leavers: someone who was a salaried UK employee, paid via PAYE, with no other UK income, no Self Assessment requirement, and who's now permanently abroad.

What Self Assessment does (in addition to P85)

Self Assessment covers:

Self-employment income (Class 4 NI + income tax).
UK rental income.
Foreign income earned during the UK part of the year.
Capital gains above the £3,000 annual exemption.
Dividend income above the £500 dividend allowance.
Higher-rate Personal Allowance taper (income above £100,000).
Marriage Allowance changes within the year.

If any of these apply for the year you left, Self Assessment is also required alongside P85.

When to file both - the typical leaver

A typical mid-year leaver who needs both:

Profile: London-based UK PAYE worker on £80,000 + £15,000 of UK
rental income from a flat they own.

P85: notifies HMRC of departure, processes simple split-year refund.
Self Assessment: captures the £15,000 rental income (which P85 doesn't
                 see) plus reconciles the PAYE part of the year and
                 calculates any final tax owed or refund.

Without Self Assessment, the rental income would slip through. HMRC's data systems would catch it eventually (UK property tax compliance is tight) and the leaver would get an enquiry letter abroad.

When P85 alone is enough

A simple PAYE leaver who needs only P85:

Profile: Manchester-based UK PAYE worker on £45,000, no other income,
         no rental property, no investments above PSA / DA, leaving
         to take a permanent role in Spain.

P85: notifies HMRC + processes any small PAYE refund from unused
     Personal Allowance for the months after departure.
Self Assessment: NOT needed.

Mid-year departure: the split-year mechanics

The UK tax year runs 6 April to 5 April. If you leave mid-year:

The UK part (6 April to departure date): full Personal Allowance applied as if resident all year.
The overseas part (departure to 5 April): generally only UK-source income taxable in the UK.

Worked example: leaving 31 October.

UK part: 6 April - 31 October (almost 7 months)
Earnings (PAYE):                 £30,000
Personal Allowance:              £12,570
Taxable in UK part:              £17,430
Income tax + NI accrued via PAYE through this period

Overseas part: 1 November - 5 April
UK rental income (£500/month):    £2,500
Foreign earnings:                Generally NOT UK-taxable
                                 unless certain rules apply

Split-year SA captures both components and reconciles.

P85 alone wouldn't capture the £2,500 UK rental income. Self Assessment is required.

Ongoing UK income after leaving

If you keep UK-source income after departure:

UK rental income (most common ongoing UK income)

You must continue filing Self Assessment annually as a non-resident landlord.

Key admin: register for the Non-Resident Landlords (NRL) scheme via NRL1 form. This lets you receive gross rent (with quarterly tax payments) instead of automatic 20% deduction at source by your tenants or letting agent.

UK pension

UK pension paid abroad is generally taxable in the UK unless your destination country's tax treaty with the UK provides relief. For most major destination countries, the pension stays UK-taxable but the destination country may give credit.

UK dividends + savings interest

UK dividends paid to a non-resident: typically withheld at source at the basic rate unless treaty relief applies.

UK savings interest: typically gross for non-residents (no UK withholding). Whether you pay tax on it in the UK depends on your specific circumstances.

UK self-employment continuing remotely

If you continue UK-based self-employment from abroad (remote consulting for UK clients), the situation gets technical. Generally the UK retains taxation rights but specific treaty relief may apply.

Common mistakes

Mistake 1 - File P85 only, miss Self Assessment

You file P85, get a small refund, move abroad. A year later HMRC sends a letter to your foreign address (if you provided one) or your old UK address (if not) requesting Self Assessment for the year of departure. By that point you may have missed the 31 October paper / 31 January online deadline + accumulated penalties.

Mistake 2 - File Self Assessment only, skip P85

HMRC's records still show you as UK-resident. Future correspondence goes to your old UK address. UK tax codes may continue to be issued (and unused). NI deductions may continue if you have ongoing UK PAYE income (e.g. UK consulting work).

Mistake 3 - Don't tell employer before leaving

Your UK employer needs to know your last day so they can issue a P45 properly. Without a P45, you can't easily file P85 (you'd use your final payslip but the process is more complex).

Mistake 4 - Don't update HMRC of your destination address

Refunds get sent to your old UK address. You miss the cheque (or it bounces). HMRC has to re-issue.

Mistake 5 - Misinterpret "less than a full tax year"

If you leave the UK on 30 March and return on 1 April the next year, you've been abroad for less than a full UK tax year (which runs 6 April to 5 April). You typically remain UK-resident and Self Assessment is the correct route, NOT P85.

Filing timing

Situation	Earliest filing time
P85 alone	After your departure date - usually within 1-2 weeks
Self Assessment for leaving year	After 6 April (year-end) - typically May onwards
Both	Submit P85 immediately on leaving + Self Assessment after 6 April

When to talk to an international tax adviser

For routine departures (UK PAYE earner moving abroad for a job, no UK property left behind), the P85 + new country's tax filing covers it. An international tax adviser earns their fee when:

You have substantial UK assets (property, investment portfolio, business interests).
You're moving to a country with an unusual tax structure (Hong Kong, Singapore, UAE, Dubai - zero or near-zero income tax - these often need expert handling).
You have UK-domiciled status issues distinct from residency.
You're considering expatriation for tax reasons (legal but complex).
You expect to return to the UK within 5 years (special temporary non-residence rules apply).

The Chartered Institute of Taxation (CIOT) lists specialist international tax advisers at ciot.org.uk.

Disclaimer

PayslipIQ provides automated educational guidance based on the figures you supply. It is not regulated tax advice. International tax depends on the destination country's rules + the UK tax treaty + your specific circumstances. For substantial cross-border tax decisions, consult a CTA-qualified or US/cross-border-licensed tax adviser before leaving the UK.