All Collections
Understanding our categories
Categories explained: Employee Relocation Expenses
Categories explained: Employee Relocation Expenses
Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

If you contribute to an employee's relocation costs as their employer you have certain tax, National Insurance and reporting obligations.

What's included

Relocation costs paid for an employee can include the following:

  • Buying or selling a home

  • Moving

  • Buying things for their new home

  • Bridging loans

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.

Tax tips

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.

Useful links

Did this answer your question?