Don't close your bank account before leaving the UK: What to do with tax refunds and pensions

Air tickets booked, house rented out, bank card canceled the same day - three months later, HMRC sent a refund check of hundreds of pounds to the old address in the UK, and the money could not enter any account that was still active. This is the most common and most unfortunate loss when leaving the UK.

The money to be handled before leaving is actually divided into three lines: refund, account, and pension . Each has its own timeline, and if the order is mixed up, you will have to go around again.

How to get a tax refund when leaving the UK? Two prerequisites for Form P85

UK income tax is estimated based on annual income and deducted monthly. Since you left in September, the system deducts tax assuming "you will work until April 5th of next year," and you need to actively claim the over-deducted amount.

Tools are P85 (Get your Income Tax right if you're leaving the UK). GOV.UK clearly states: applies to those who have lived and worked in the UK, left and may not return, or will work full-time overseas for at least one complete tax year.

Two operational details are most easily overlooked: , you can only print and mail it out before the person leaves the UK, online declaration is only open for those who have already left the country; when you leave the job, the P45 received should have the second and third copies submitted together.

HMRC clearly states: it does not bear the cost of converting refunds to foreign currency or transferring them overseas. Checks will be sent to the current address registered in the system. Therefore, do not close your UK bank account before the tax refund is received.

After leaving the UK, can I keep my ISA and bank account?

The ISA rules are: after becoming a non-resident, you cannot contribute money to it starting from the next tax year after you move out , but the account can remain open, and the money inside is still tax-free in the UK. You need to inform the ISA provider that you have moved out, don't wait for them to find out.

Here is a new change that has just taken effect: From April 6, 2026, overseas periods will no longer be eligible for Class 2 contributions, only Class 3. The weekly rate jumps from a few pounds to about £17.75 (about £923 per year), and new applicants must meet either "continuous residence in the UK for 10 years" or "having 10 qualifying years". The form is CF83, read the NI38 guidance before applying, and the exact rates are subject to HMRC's annual announcement.

Another reminder: people overseas can still receive the State Pension, but the annual increase of applies only in EEA, Gibraltar, Switzerland, and countries with relevant social security agreements with the UK. In other places, the amount will be frozen at the level when it was first received. This is a pure rule, knowing it in advance will help you make arrangements.