Spotlight on: Leaving the UK for Dubai? Don’t Get Caught Out – Here’s What HMRC Really Needs to Know!

For many people leaving the UK, Dubai represents a fresh start: sunshine, opportunity, and of course, its well-known tax-free environment. But while your bags may be packed and your new life on the horizon, there’s one important detail that can often be overlooked – informing HMRC that you are leaving the UK and no longer plan to be a UK tax resident.

This step isn’t optional. In fact, ensuring HMRC knows about your move is one of the most crucial parts of transitioning to life abroad. Simply boarding a flight out of Heathrow does not automatically end your UK tax obligations. Your tax residency status is based on the Statutory Residence Test, a framework that considers how many days you spend in the UK along with your continuing ties to the country, such as property, work, or family.

So even if you now live in Dubai, HMRC may still treat you as UK resident and tax you accordingly unless you proactively inform them. Let's take a closer look...

Thinking of Moving to Dubai? Here’s What HMRC Needs to Know

The Form You Need: P85

To notify HMRC that you are leaving the UK, you’ll need to complete a P85 form. This tells HMRC when you left, where you’re moving to, and whether you expect to continue receiving any income from the UK.

If you’re employed, your employer will provide you with a P45 when you leave your job. This should be submitted with your P85 so your tax is settled correctly.

Filing the P85 helps establish the correct date that your UK tax residency ends, ensuring your income going forward is taxed appropriately. In other words, it prevents confusion later – especially if HMRC reviews your tax status or asks questions in the future.

Do You Still Pay UK Tax After Moving?

Leaving the UK doesn’t always mean your UK tax obligations disappear completely.

If you keep UK income sources – such as rental income, a UK business, dividends from a UK company, or a pension – you may still owe tax to HMRC. However, how that income is taxed can be very different if you are officially recognised as non-UK resident.

This is why notifying HMRC and understanding your residency status is so important:

it helps avoid surprise tax bills, incorrect deductions, or compliance issues later on.

Planning Ahead Matters

We frequently work with individuals who moved first and tried to “sort out the tax later.” Unfortunately, this often leads to complications – sometimes even expensive ones.

A little planning ahead of your departure can:

• Prevent accidental UK tax residency

• Ensure the correct tax treatment of UK income

• Avoid HMRC challenges years down the line

• Handled properly, your transition to Dubai can be smooth, compliant, and financially secure.

At The Tax Faculty – Dubai Tax Experts, we specialise in helping individuals relocate from the UK to the UAE. We guide you through:

• Determining and securing non-resident tax status

• Completing the P85 and other HMRC notifications

• Structuring your income and assets efficiently

• Avoiding common residency “traps” that can trigger UK tax unexpectedly

If you’re planning to move, the best time to get advice is before you leave.

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