HMRC Announces New P85 Tax Refund Process for Overseas Workers

HMRC is set to introduce a UK bank transfer option for P85 tax refunds starting in the 2025/26 tax year. This new system aims to streamline the refund process for workers leaving the UK. Currently, refunds are issued only by cheque in British pounds, causing delays and complications for those who have already returned to their home countries. The upcoming change will allow eligible individuals to choose between a UK bank transfer or cheque refund. HMRC advises using digital services and the "Where's My Reply" tool to track refund status. Until the new system is implemented, overseas workers should plan accordingly for potential delays in receiving their tax refunds.

 

Sources: LITRG, ATT, Tax.org.uk