Getting a UK tax refund after you leave

Why do you overpay tax when you leave the UK mid-year?

Direct answer: You overpay because PAYE spreads your Personal Allowance evenly across the whole tax year, then you stop earning before the year ends. By the time you leave, the payroll has only handed you a slice of your £12,570 tax-free allowance (2026/27) — but you're entitled to the whole of it against your lower part-year earnings. The unused remainder is your refund (HMRC PAYE94025).

PAYE runs on a cumulative basis: each month your employer gives you one-twelfth of your Personal Allowance and taxes the rest. So if you emigrate in month four, the payroll has released only 4/12 of your £12,570 against the pay you earned — even though, with no further UK earnings coming, you can set the entire £12,570 against those earnings. That gap, plus any tax taken at too high a rate, is what you reclaim.

This is general guidance, not a promise of money. Whether you're owed anything depends on your pay, your tax code, when you left, and any taxable benefits afterwards.

How do you reclaim the overpaid tax — P85 or Self Assessment?

Direct answer: Through one of two routes, decided by a single question — are you filing a Self Assessment return for the year you leave? If not, use form P85. If you are in Self Assessment, you do not file a P85 — the refund falls out of your return through the SA109 residence pages.

• Send Parts 2 and 3 of your P45 (keep Part 1A). It's the load-bearing document for the refund. No P45? Tell HMRC why.
• The SA109 can't use HMRC's free online service. SA leavers file paper by 31 October, or commercial software / an agent online by 31 January.
• The P85 has no split-year boxes — its residence questions give HMRC what it needs. SA filers claim split-year on the SA109 (box 3, box 3.1, split date in box 6).

For the form itself, see the P85 form guide. For when the year splits and what it means for the size of your refund, see split-year treatment.

What is the NT tax code, and how does it stop future deductions?

Direct answer: NT — "No Tax" — is the code HMRC issues to your UK employer when your earnings stop being UK-taxable, e.g. once you're working full-time abroad. It stops Income Tax coming out of that pay, and because it runs cumulatively, applying it part-way through the year automatically refunds tax already deducted that year through payroll. NT does not switch off National Insurance (HMRC PAYE81670; PAYE11010).

• NT is for ongoing UK-payroll earnings that have become non-taxable. If you've left UK employment altogether, there's nothing for an NT code to operate on — you reclaim past over-deduction via the P85 (or your return).
• NT stops Income Tax, not National Insurance. NIC can keep running — under the 52-week rule for a posting, or for a director. See National Insurance when living abroad.

How long does the refund take, and how are you paid?

Direct answer: There's no published fixed turnaround, so we won't quote one. HMRC directs claimants to its live "Check when you can expect a reply" tool and gives you a reference to track the claim. Refunds are paid by payable order within the UK only — HMRC will not transfer abroad or cover currency conversion. Keep a UK bank account, or nominate a trusted UK person or address, until it lands.

What can't you reclaim?

Direct answer: You can't reclaim tax that was correctly charged on UK-source income — that doesn't stop just because you've left. UK rental income, earnings for UK workdays, UK pensions, and gains on UK land all stay within the UK charge. A "refund" only ever returns tax that was overpaid.

A nuance: UK dividends and savings interest can be "disregarded income" as a non-resident, capping your UK tax — but only if you forgo the Personal Allowance against your other UK income. HMRC computes it both ways and you pay the lower. See UK dividends and savings when non-resident.

The practical reality: you pay first, then reclaim

Direct answer: There's an inherent pay-then-reclaim lag. You pay Income Tax under PAYE in real time, then claim the overpayment back afterwards — the money doesn't arrive the moment you board the plane.

• An in-year claim is sometimes possible — once HMRC has your P85 and P45, and you aren't claiming Jobseeker's Allowance or taxable ESA.
• Sometimes you wait until after 5 April — in some cases the repayment settles only at the year-end reconciliation.
• If you're kept on a UK payroll, the NT code refunds the over-deduction through your next pay runs rather than as a separate cheque.

Worked example — a mid-year leaver's refund (2026/27, illustrative)

The facts: salary £42,000 (£3,500/month), taxed under PAYE on the cumulative basis, code 1257L. You leave UK employment and emigrate at the end of July 2026 — after four months. You have no further UK-taxable income, you're entitled to the full £12,570 allowance, and you don't claim Jobseeker's Allowance or ESA.

1. Tax deducted by month 4. Pay to date: 4 × £3,500 = £14,000. Allowance released: 4/12 × £12,570 = £4,190. Taxable: £9,810. Tax deducted: £9,810 × 20% = £1,962.
2. Tax actually due for the year. Full £12,570 sets against £14,000. Taxable: £1,430. Tax due: £1,430 × 20% = £286.
3. The refund. £1,962 paid − £286 due = £1,676 back.

Not in Self Assessment? You file a P85 with Parts 2 and 3 of your P45; HMRC reviews 2026/27 and pays the £1,676. In Self Assessment? The identical £1,676 falls out of your SA100 + SA109 — same money, different route.

Common mistakes that cost leavers their refund

• Filing a P85 when you're in Self Assessment (or vice versa). Doing the wrong one creates duplication and delay.
• Forgetting Parts 2 and 3 of your P45. Without them HMRC can't work out the over-deduction cleanly.
• Closing your UK bank account too soon. HMRC pays by payable order within the UK and won't wire it abroad.
• Claiming taxable benefits after leaving work. Jobseeker's Allowance or taxable ESA use up your allowance and reduce the refund.
• Assuming the SA109 can go through HMRC's free online service. It can't — paper by 31 October, or software by 31 January.
• Expecting it instantly. The pay-then-reclaim lag is real; a year-end refund waits until after 5 April.
• Treating tax on UK-source income as reclaimable. UK rent, UK workdays, UK pensions and UK-land gains stay taxable.

Common questions