Tax-free relocation costs

Certain relocation costs up to £8,000 are exempt from reporting and paying tax and National Insurance. These are called ‘qualifying’ costs and include:

• the costs of buying or selling a home
• moving costs
• buying certain things for a new home
• bridging loans

These are only qualifying costs when:

• a new employee is moving area to start a job with you
• an existing employee is changing their place of work within your organisation
• the employee’s new home is reasonably close to the workplace and their old home is not
• the costs are paid before the end of the tax year that’s after the one in which the employee started their job

For qualifying costs over £8,000, you may have to report and pay tax and National Insurance.

Source: New feed