HMRC Form P85 Explained: What British Expats Moving to Argentina Actually File

HMRC form P85 is one of the most misunderstood bits of admin for British expats. Many people think filing it makes them non-resident for tax purposes. It does not. Residence is decided by the Statutory Residence Test (SRT), a set of rules counting days spent in the UK and ties to the country. The P85 is just how you tell HMRC that you have left. But doing it matters, and doing it at the right time can trigger a tax refund on PAYE already paid in the year you leave.

What P85 actually does

For related context, see UK Tax and HMRC for British Expats in Argentina.

When you submit P85, you are telling HMRC:

1. I am leaving the UK for work or to live abroad

2. Here is my new address

3. Here is my last UK employer (if any)

4. Here is the date of leaving

HMRC processes the form and:

• Updates your tax code (if you were still on PAYE when you left)
• Reviews the tax already paid for the year of departure
• Issues a refund if you have overpaid PAYE (common if you leave partway through the tax year)
• Flags your account as "resident abroad" for future correspondence

When to file

Submit P85 as soon as possible after leaving the UK. The official guidance says you can file it before leaving if you have a firm date, or immediately after. In practice, waiting a few weeks is fine. HMRC does not start the clock on refunds until they receive the form.

Do not wait until the following tax year. Delay means HMRC may treat you as UK resident for longer than necessary and continue to tax UK-source income (salaries, dividends) at full rates.

How to submit

Online: file via gov.uk/tax-if-you-leave-uk. You need a Government Gateway account, your National Insurance number, and details of your leaving date and new address. The online form takes 10–20 minutes.

Paper: download form P85 from gov.uk, fill it in by hand, and post to HMRC, Pay As You Earn and Self Assessment, BX9 1AS. Expect slower processing.

Via a tax agent: your UK accountant can submit on your behalf using their credentials.

What P85 does NOT do

• It does not automatically make you non-resident. That is determined by the Statutory Residence Test (SRT) based on days in UK and ties (home, work, family, 90-day rule). You can submit P85 and still be a UK tax resident that year.
• It does not close your UK tax account. You still file Self Assessment if you have UK income to declare (rental income, dividends, interest).
• It does not affect your UK State Pension eligibility. That is based on National Insurance contributions, not residence.
• It does not stop HMRC correspondence. You still get letters (and can still be audited) about UK-source income.

Interaction with the Statutory Residence Test

The SRT has three parts:

• Automatic overseas test: if you spent fewer than 16 days in UK (first year abroad) or 46 days (subsequent years), you are automatically non-resident.
• Automatic UK test: if you spent 183+ days in UK or have a UK home used as your only home for 30 days, you are automatically UK resident.
• Sufficient ties test: between the two, the SRT counts ties (family, accommodation, work, 90-day ties, country ties) to determine status.

Filing P85 provides HMRC with the information they need to classify you correctly. It is the trigger for them to run the SRT against your circumstances.

The refund

The refund mechanism matters. If you were a UK employee on PAYE and left partway through the tax year, you have paid tax at a rate assuming a full year's earnings. Since you only earned a partial year's income, HMRC refunds the difference.

Example: you were on £60,000/year and left in September. PAYE had been taxing you at rates assuming £60k across 12 months. Actual earnings to September are about £30k, which has a lower effective rate. HMRC refunds the overpayment. often £1,500–3,500 depending on circumstances.

Submit P85 promptly to get this refund. It typically lands within 4–8 weeks of filing.

Continuing UK tax obligations

Even after P85, you remain liable for UK tax on:

• UK rental income (rented out your UK home): taxed as non-resident landlord. Form NRL1 is the process for landlords to receive rent without withholding tax.
• UK dividends from UK companies: limited withholding, can be offset against Argentine tax.
• UK pension income: taxed under the UK-Argentina double taxation agreement.
• UK employment if you still work for a UK employer: complex, see a cross-border accountant.
• Capital Gains Tax on UK property sale: 5-year rule means if you sell a UK property within 5 years of becoming non-resident, CGT may still apply.

These obligations are separate from P85 and require Self Assessment filings.

Common mistakes

1. Thinking P85 alone makes you non-resident. It does not. Only the SRT does.

2. Waiting until the next tax year to file. Delays the refund.

3. Filing P85 but not NRL1 for rental income. You are then taxed at 20% withholding.

4. Not updating your new address. HMRC correspondence goes to old UK address.

5. Forgetting to enroll in Self Assessment if you have ongoing UK income.

Not tax advice. Your circumstances affect how the SRT applies. A UK cross-border tax accountant is worth their fee for anyone with property, pension, or business income in the UK.

Worth reading next

• UK Tax and HMRC for British Expats in Argentina
• Getting a CUIT as a UK Buyer: Tax ID for Argentine Property Purchases
• UK Inheritance Tax When Living in Argentina: Domicile, Estate Planning and the £325K Threshold