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Inform HMRC of leaving country when self-employed and UK clients

Inform HMRC of leaving country when self-employed and UK clients

Old Apr 16th 2018, 5:14 pm
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Default Inform HMRC of leaving country when self-employed and UK clients

Hello all,

My partner and I will be moving to Australia from the UK this coming June and I had a few questions regarding HMRC when leaving the country for good. I am a self-employed graphic designer and from what I can tell from looking online, I need to fill out a P85 to let them know that I'll be leaving the country and wish to become non-resident in the UK. Is that all there is to it? I was also wondering, after becoming non-resident in the UK, if I complete any work for my current UK clients whilst in Australia, will I still need to fill out a UK tax return or will I simply fill it in as foreign income on my australian tax return?

Thanks
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Old Apr 16th 2018, 5:50 pm
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Default Re: Inform HMRC of leaving country when self-employed and UK clients

Yes, Form P85 is all you need to do, and even that is optional, albeit preferable for you as you will likely be due a tax rebate for this financial year. If you complete work for UK clients, or anyone else, then you will need to declare that income to the Australian Taxation Office if you are tax resident in Australia. If you have a UK registered company that you receive payments through then the company will still need to pay corporation tax in the UK but your dividends will need to be declared in Australia.
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Old Apr 16th 2018, 6:02 pm
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Default Re: Inform HMRC of leaving country when self-employed and UK clients

Thank you very much for the reply, I'm only set up as a sole trader working under a trading name so shouldn't have to worry about any of the other bits you mentioned!
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Old Apr 16th 2018, 11:54 pm
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Default Re: Inform HMRC of leaving country when self-employed and UK clients

If you are self employed you will be lodging self assessment personal tax returns each year.

HMRC guidance for people in the SA system is that they don't lodge a form P85, and advise of the cessation of tax residency via the Residence supplement to the UK tax return.

Best regards.
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Old Apr 16th 2018, 11:57 pm
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Default Re: Inform HMRC of leaving country when self-employed and UK clients

Originally Posted by Alan Collett
If you are self employed you will be lodging self assessment personal tax returns each year.

HMRC guidance for people in the SA system is that they don't lodge a form P85, and advise of the cessation of tax residency via the Residence supplement to the UK tax return.

Best regards.
Quite right, nice catch.

Fill in form P85 and send it to HMRC. Include Parts 2 and 3 of your P45 form - get these from your employer (or Jobcentre Plus if you’ve been claiming Jobseeker’s Allowance).

Send a Self Assessment tax return instead if you usually complete one, for example if you’re self-employed.
https://www.gov.uk/tax-right-retire-abroad-return-to-uk
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