Date of publication: November 2016
Qualifying expenses and benefits
There's a partial tax, NICs and reporting exemption if you provide an employee with relocation expenses or benefits that meet all four sets of qualifying conditions set out below. These are known as 'qualifying' expenses and benefits.
First, the employee's reason for relocation must be one of the following:
Second, the expenses and benefits must fall into one of the six categories below:
Third, there is a time limit. To qualify, the expenses must be incurred or the benefits must be provided before the end of the tax year after the one in which the employee's circumstances changed (as outlined in the first step of this list).
Fourth, the employee's new residence must be within reasonable daily travelling distance of their new normal place of work, and their old residence must not be within reasonable daily travelling distance of the new normal place of work.
Non-qualifying expenses and benefits
A relocation expense or benefit is 'non-qualifying' if it doesn't meet the four sets of qualifying conditions outlined above.
Examples of non-qualifying expenses and benefits include:
Disclaimer: This note does not contain a full statement of the law and it does not constitute legal advice. Please seek legal advice if you have any questions about the information set out above.
Copyright © 2013 - Oury Clark.