If you contribute to an employee's relocation costs as their employer you have certain tax, National Insurance and reporting obligations.
Relocation costs paid for an employee can include the following:
Buying or selling a home
Buying things for their new home
What's not included
The employee is exempt from paying tax or NI on qualifying relocation costs up to £8,000.
How is it taxed?
Qualifying costs over £8,000 you must report on the employees form P11D and pay Class 1A National Insurance on the amount above the threshold.
Non-qualifying benefits that you arrange for your employee and pay any supplier directly for are also reportable under P11D. Check the HMRC link here to see what to report and pay.