P85 & P86 Forms

[peter124]

Some advice if possible, I visited my local HM Revenue & Customs office today as I am retiring shortly and hope to move to Thailand in November.

So, I asked all the questions I could think of regarding taking early retirement then as I had seen a refferance to retireing abroad I asked about taking a 12 month holiday from the Uk and was informed that I would have to fill in form P85 on my departure and form P86 on my return to this country. I'm 60 and I will have a company pension and pay tax in the UK or do these or one of these forms exempt me from paying tax? If so is it worth doing and what if any are the pitfalls?

Any advice welcome.

Regards,

Peter

[JetsetBkk]

Download IR20 - Residents and Non-Residents Liability To Tax in The UK: http://www.hmrc.gov.uk/leaflets/c9.htm

Those forms - P85 & P86 merely let HM Revenue know that you've left the UK (85) and come back again (86), so they can calculate what your tax liability is - neither form exempts you from paying it:

"If you are resident in the UK you will pay tax on all your income, but if non-resident you will pay tax only on income arising in the UK."

There is another form - R105 - that allows you to receive interest with no UK tax taken off: http://www.hmrc.gov.uk/forms/r105.pdf

[phutoie2]

Jet set, Nationwide Building society do not issue R105 and I have applied for some other form which details interest & tax on my savings and can be sent to HMRC, but after reading their website I am still a little confused.

I am trying to claim tax paid on savings for year 07-08.

Also I am researching off shore accounts with Nationwide and Halifax.

When I came to live in Thailand I sent off form P85, never had a reply from the tax office so telephoned the one in South Wales and had a good chat, they had received my P85 and just informed myself that they were working out my tax contributions for year 05-06!!

[JetsetBkk]

Jet set, Nationwide Building society do not issue R105 and I have applied for some other form which details interest & tax on my savings and can be sent to HMRC, but after reading their website I am still a little confused.

I am trying to claim tax paid on savings for year 07-08.

I think claiming for 07-08 is a little too early for the revenue!

I found this on the Nationwide web site:

R85 Tax form information

If you are eligible to receive interest on your account without tax being deducted, you will need to complete an R85 Tax Form. This form will allow you to register up to 2 accounts for gross interest. If you have more accounts than this you will need to complete additional R85 forms.

You can request a form directly from the Inland Revenue or obtain one from any Nationwide branch.

If you’re registered for Internet Banking you can download a PDF version of the form yourself. There is also a Helpsheet included as a guide to helping you decide whether you’re eligible to receive interest. Please note you can only access the form when you are Signed On to the Internet Bank.

Click on the account for which you want the R85 form

Choose 'Other Services' from the left hand side of the screen

Click on 'R85 Request' in the 'Tax Forms' section

The form will appear on your screen for you to print off and complete

You can hand your completed form to your local Nationwide branch, or post it to:

The Tax Team

Nationwide Building Society

Freepost (SN 1926)

Swindon

SN38 9BG

To register your R85 form, we will need you to complete your name, address, date of birth, account number and you will need to sign the form.

We can not give advice about tax issues, please contact your Tax Office with any queries.

But the help for this form says it is ONLY for people living in the UK,

The law allows everyone who lives in the UK to receive some income, at least £100 a week, before tax has to be paid. If your income is below that limit, and you’ve got some money in a bank or building society, you will be paying tax on your interest when you don’t have to.

If you live in the UK, use the notes below to see if you should be filling in the attached form 'Getting your interest without tax taken off (form R85)'. If you need help, please phone the HM Revenue and Customs Helpline on 0845 980 0645. (If you don’t live in the UK, year on year, please phone the Helpline.) Type Talk is available using prefix number - 18001.

Please don't ask Nationwide for advice – it's the HM Revenue and Customs's job to help you fill in this Helpsheet.

So I think you have to do what I did - request a refund using the Tax Return.

Also I am researching off shore accounts with Nationwide and Halifax.

When I came to live in Thailand I sent off form P85, never had a reply from the tax office so telephoned the one in South Wales and had a good chat, they had received my P85 and just informed myself that they were working out my tax contributions for year 05-06!!

Whoops - just saw your reference to P85! So, good - you've done that and they've got up to 2006! Like I said, getting 2007-08 sorted is going to take them a little time!

Edited July 1, 2008 by JetsetBkk

[peter124]

H i JetsetBkk,

Thanks for the clarification and the pointers.

Regards,

Peter