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Filing P85 Form

Filing P85 Form

Old Mar 14th 2014, 11:04 am
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Default Filing P85 Form

I'm getting confused about what we have to file/declare to HMRC when we relocate in the summer.

To recap, we're coming over on L-1/L-2 visas. We will retain our house in the UK and rent it out.

My understanding from lots of similar questions on this forum is that we file a P85 form and complete a NRL for the letting agent. However, my accountant has just come back to me to confirm we do not file a P85, because we'll have to file a self assessment form to declare the property income.

This does seem to be backed up by the wording on the form itself:

Use this form to claim tax relief or a repayment of tax if:
• you have lived or worked in the UK, and
• you are leaving the UK, and you
— may not be coming back, or
— are going to work abroad full-time for at least one complete tax year. A tax year is from 6 April one year to 5 April the next.

Do not fill this form in if:
• you normally live in the UK and are going abroad for
short periods, for example on holiday or a business trip, or
• you have completed, or are required to complete a Self Assessment tax return for the tax year that you leave.


So, do I definitely strike off filling the P85 form from my list? Presumably I still need to inform HMRC that we'll be non-resident though?
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Old Mar 15th 2014, 1:39 am
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Default Re: Filing P85 Form

I agree with your accountant. But if I didn't, would you believe me or him
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Old Mar 15th 2014, 4:39 am
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Default Re: Filing P85 Form

Originally Posted by RICH View Post
I agree with your accountant. But if I didn't, would you believe me or him
Yes, I agree too. A P85 is for people severing their (tax) link to the UK, at least for the medium term (1+ years).
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Old Mar 17th 2014, 6:17 pm
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Default Re: Filing P85 Form

Originally Posted by Lucybell33 View Post
So, do I definitely strike off filling the P85 form from my list? Presumably I still need to inform HMRC that we'll be non-resident though?
The way I read that you have to file P85 later on after you've filed the return. Call HMRC frankly is the best option. Also be aware of form R105 which you have to give to banks when you become non-resident.
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Old Mar 17th 2014, 8:13 pm
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Default Re: Filing P85 Form

I wouldn't sweat it Lucy. We moved to the US in June 2013 and rent out our UK home. We submitted the P85 without noting that we didn't need to as we would be completing a self assessment. All that happened was that we received a letter from HMRC stating that we could not have a tax refund until we had completed a self assessment for 2013-2014.

Last edited by HartleyHare; Mar 17th 2014 at 8:15 pm. Reason: Wrong form number
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Old Mar 18th 2014, 12:46 pm
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Default Re: Filing P85 Form

You've made it red (or at least it looks red to me) where it says do not fill in p85 if you need to fill in a tax return. You need to fill in a tax return if you have rental income.

P85 is basically just a shortened version of the tax return for people in a specific situation. Filling it in along with a return will confuse hmrc. If you have an accountant then just leave it to them to deal with.

You can ask for the banks to pay your interest gross of tax, but unless you are getting a serious amount of interest then I wouldn't bother if you are filling in a tax return anyway. It'll all be worked out on your return.
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