So You’re Leaving the UK? Let’s Talk Taxes (Before HMRC Hunts You Down)

I am writing this blog for three main reasons:

1. I am a Chartered Accountant and I love to impart tax knowledge

2. I had a stint living abroad for a couple of years so this is a "don't repeat my mistakes" post

3. I currently spend 26% of every day dreaming about moving to Ibiza.

Ah, the sweet thrill of packing your bags, waving goodbye to rain-soaked weekends, and announcing to friends and family, “I’m moving abroad!” But before you imagine yourself sipping cocktails on a Spanish beach or practicing yoga in Bali, let’s talk about the one clingy relationship you can’t ghost: HMRC.

Because while you may be leaving the UK, your taxes might not be. Think of HMRC as the ex who insists on still being “friends.”

The Great Escape (Or So You Thought)

When you leave the UK, you may picture yourself as James Bond, striding through Heathrow, sunglasses on, never looking back. In reality, you’ll be dragging an overstuffed suitcase, airport staff shouting “liquids in a clear bag, please,” while muttering to yourself about split-year treatment.

Yes, that’s right. The UK tax year doesn’t care about your flight date. It runs stubbornly from 6 April to 5 April (because apparently a normal calendar year was too mainstream). So if you leave in, say, October, HMRC wants to know if you were a “UK tax resident” for part of that year. Congratulations - you may now be living two parallel tax lives, like some sort of accountant’s version of Doctor Who.

The SRT (Not a Sports Car, Sadly)

You’ll quickly meet the Statutory Residence Test (SRT). This isn’t an exciting new racing game - it’s the UK’s way of working out whether you’re still considered a tax resident.

The SRT is basically a flowchart designed by someone who clearly hates happiness. It asks questions like:

• Did you spend 183 days in the UK this year?

• Do you still own a house here?

• Do you have a spouse, kids, dog, or goldfish in the UK?

• Have you been spotted loitering in a Greggs more than three times in a week?

  
  

Depending on your answers, you’ll either be free (non-resident) or stuck (resident), which has a huge impact on whether you pay UK tax on worldwide income or just UK income.

The P85 – Your Breakup Letter

When you officially leave, you get to file the legendary P85 form. This is essentially your “Dear John” letter to HMRC:

“Dear Taxman,It’s not you, it’s me. I’ve found someone else (Portugal, with 300 days of sunshine and a Non-Habitual Residency scheme). Please forward my post. Love, Me.”

The P85 lets HMRC know you’re outta here, and it helps them figure out if they owe you a tax refund (yes, miracles do happen). Don’t skip it - HMRC doesn’t like being ghosted.

What About Child Benefit?

Ah yes, child benefit - that lovely monthly payment that made nappies and Lego sets slightly less financially ruinous. If you and your kids move abroad, whether you keep it depends on where you go. Move to an EU country or somewhere with a social security agreement, and you might still get it. Head off to Australia or Thailand? Nope. HMRC basically says: “Congratulations on your new adventure. Also, good luck paying for school shoes without us.” So before you vanish, check the rules - otherwise you may end up explaining to your children why their pocket money has been downgraded from a shiny coin to “Dad’s IOU note.”

And Student Loans?

If you thought moving abroad would finally free you from your student loan, I’ve got bad news. The Student Loans Company (SLC) has spies everywhere. If you’re working overseas, you have to tell them where you are, how much you’re earning, and then they’ll decide how much you should repay. Fail to update them? They’ll assume you’re secretly a millionaire and slap you with the highest repayment rate possible. It’s like having a gym membership you can never cancel - except instead of unused treadmills, it’s 9% of your salary disappearing.

The Things You Can’t Escape

Here’s the kicker: even if you’re tanning abroad, some UK taxes may still follow you around like an overenthusiastic spaniel. For example:

• UK rental income – If you’re still renting out that shoebox flat in Croydon, HMRC still wants its slice.

• Capital Gains Tax – Sell UK property? Yep, still taxable.

• Pensions – Those retirement funds will stay firmly under HMRC’s watchful eye.

Basically, you can’t just disappear into the sunset without thinking about this stuff. HMRC is like a GPS tracker for your finances.

The Silver Lining

Now, don’t despair. Living abroad could mean paying less tax, depending on where you land. Some countries have double tax treaties with the UK, so you don’t get taxed twice (because nothing kills the mood faster than paying tax on the same income twice). Others have famously generous tax regimes for newcomers.

And of course, you’ll get to enjoy smugly sending your UK friends pictures of you working “remotely” by a pool while they scrape ice off their cars. Just remember: behind every cocktail selfie, there’s probably a spreadsheet waiting.

Final Thoughts

Leaving the UK is exciting. But before you sprint through passport control yelling “see ya, suckers!”, take a moment to fill out the forms, understand your residency status, and maybe have a chat with a tax adviser. Otherwise, you may find HMRC sliding into your DMs years later with a bill and a sarcastic “Hope you’re well.”

Because in the end, you can leave the drizzle, the Marmite debates, and the queue at Pret - but taxes? They’ll always find you.