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Telling HMRC About Leaving the UK: Your Comprehensive Guide

Telling HMRC About Leaving the UK

Leaving the UK? Filing HMRC’s forms wrong risks years of tax bills and audits. Discover Dubai Shift’s step-by-step guide for a clean, compliant exit.

Is This You?

You’re planning a permanent move — maybe to Dubai for company setup in Dubai, property investment, or global expansion. You know HMRC requires paperwork, but the stakes feel higher than ticking boxes.

One wrong step and you risk:

  • Remaining a UK tax resident on paper.
  • Surprise “exit charges” on assets or shares.
  • Years of audits and clawbacks.

What you need isn’t just admin help. You need a clean, compliant tax exit that keeps HMRC off your back permanently, backed by expert tax advice UK.

Real Prompts This Blog Answers

  • Do I have to tell HMRC when I leave the UK?
  • Which forms matter — P85, Self Assessment, or both?
  • What happens if I don’t file correctly?
  • Can HMRC still tax me if I’m already living in Dubai?
  • Will this protect me from double taxation?

Why Telling HMRC About Leaving the UK Matters (Tax Advice UK)

Too many founders assume leaving is just “packing a bag.” In reality, HMRC assumes you’re still a UK taxpayer until you prove otherwise.

If you don’t notify them correctly:

  • You may still be treated as UK resident on paper.
  • You could face exit charges on assets, companies, and even crypto.
  • HMRC may launch audits years later, challenging filings and reopening accounts.
  • Double taxation risk rises if you haven’t applied treaty protections.

This isn’t optional admin. It’s a legal cut-off point for your tax residency.

Mistakes UK Millionaires Make (And What It Costs Them)

Over the years, we’ve seen wealthy founders and families make the same errors again and again:

  • Forgetting to file Form P85. They assume HMRC knows they’ve left. Result: still taxed as UK residents.
  • Relying on Self Assessment alone. Without P85, filings don’t match residency status, triggering audits.
  • Not applying the Statutory Residence Test (SRT). They continue spending time in the UK or leaving family behind, keeping UK residency alive.
  • DIY relocation. Millionaires try to handle the process themselves, missing treaty applications, split-year relief, and proper tax advice UK.

The cost? Multi-year audits, six-figure tax bills, and years of stress.

Step-by-Step Guide: Telling HMRC About Leaving the UK and Company Setup in Dubai

Step 1: File Form P85

Complete online via GOV.UK or paper form.
Include departure date, reasons for leaving, and expected residency status.
Attach supporting evidence (employment, income, company details).
📌 Related: Get Your Income Tax Right If You’re Leaving the UK (P85 Guide)

Step 2: Apply the Statutory Residence Test (SRT)

HMRC uses day counts, work ties, and family connections to decide if you’re resident.
Misjudge this and HMRC keeps you on the tax hook.
📌 Related: Statutory Residence Test UK: A Complete Guide

Step 3: Claim Split-Year Treatment if Eligible

If leaving mid-tax year, you may not be taxed on worldwide income after departure.
Must be applied for correctly on Self Assessment.

Step 4: Close Out UK Filings

File your final Self Assessment, covering worldwide income up to departure.
Ensure filings match your P85 and SRT records.

Step 5: Establish Residency Abroad (e.g., Move to Dubai from UK)

Apply for UAE residency and structure your business properly.
Use the UK–UAE treaty to ensure you’re not double taxed.
Many founders use company setup in Dubai as the vehicle for clean relocation.

Want the simple version? Our Step-by-Step HMRC Exit Checklist for forms, timelines, and deadlines.

How Dubai Shift Solves These Mistakes (Move to Dubai from UK)

When we’re in charge of your relocation, you don’t risk forms, traps, or HMRC “surprises.”

  • We file P85 and Self Assessment correctly so your UK exit is airtight.
  • We apply the SRT and split-year treatment to cut ties legally and safely.
  • We handle exit charges, treaty applications, and double-tax protection.
  • Our licensed legal team provides 360-degree relocation support: company, family, and personal structures aligned.

With us, your UK exit isn’t stressful. It’s smooth, compliant, and bulletproof.

Case Study: When “Simple” Went Wrong

Clive, a property investor with £5M in assets, moved to Dubai in 2021. He assumed filing his Self Assessment was enough — but never filed Form P85.

Two years later, HMRC issued:

  • £320K in backdated tax on Dubai income
  • Penalties for “non-disclosure”
  • A residency challenge under the SRT

By contrast, another investor worked with Dubai Shift:

  • Filed P85 on departure with supporting documentation
  • Applied split-year treatment to protect £600K in earnings
  • Secured UAE residency within 90 days
  • Added trusts and inheritance tax planning for family assets

The result? £400K+ preserved and zero HMRC exposure.

Why Dubai Shift?

We do more than help you tick boxes. We design exit strategies for UK millionaires.

  • Licensed legal team with 100% capability for 360-degree corporate relocation support
  • Residency planning (P85, SRT, split-year)
  • Exit charge protection and treaty application
  • Dubai Holding Company and company setup in Dubai with family office structuring
  • Banking, property, and family relocation

Where GOV.UK overwhelms and TaxCare simplifies but stops short, Dubai Shift delivers the complete, legally secure exit path.

Final Word from Haseena

“Every week, I meet UK entrepreneurs who thought telling HMRC was just filling in a form. It isn’t. It’s the difference between a clean break and years of clawbacks. At Dubai Shift, we’ve seen every mistake — and we’ve fixed them. With our licensed legal team and 360° relocation support, your exit will be smooth, compliant, and beyond HMRC’s reach.”

What Next?

This article is part of Dubai Shift’s exclusive UK-to-Dubai relocation series, covering P85 forms, exit charges, trusts and inheritance tax, and residency planning. Want the simple version? Explore more at Dubai Shift

Frequently Asked Questions

Yes. If you don’t, HMRC continues to treat you as UK-resident.

No. It must align with SRT results and your Self Assessment.

You risk residency challenges, audits, and six-figure backdated tax bills.

Only if combined with proper treaty application and proof of UAE residency.

Services start at €15,000. Typical clients save £200K–£600K annually.

Haseena from Dubai
Haseena from Dubai
A founder, a Dubai insider, globally seasoned. Writing to you from the city I’ve always called home — but now see with fresh eyes.
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