Relocation Assistance Scheme: Administrative guidance notes

This note supplements the Relocation Assistance Scheme and should be read in conjunction with those notes. It is intended for use by administrative staff in Colleges and Professional Services.

How much assistance will a new member of staff be eligible for?

The standard scheme provides relocation assistance for actual costs incurred of up to:

The scheme specifies those expenses that should normally be claimed, which are expected to provide an adequate basis for claims within the standard arrangements and should be strictly adhered to. HM Revenue and Customs (HMRC) regulations define what expenses can and cannot be claimed. The regulations also define the maximum sum that can be claimed (currently £8,000) and the time limit for reimbursing the expenditure incurred - ie the end of the tax year following that in which the new employment commenced.

HMRC guidance on relocation expenses and benefits can be found on the HMRC webpages.

How does the member of staff make the claim?

Whenever possible the new member of staff should arrange for the supplier to present an invoice to the University and the College/Service will make payment direct to the supplier via Aptos using the appropriate account code with subjective code L32 for relocation costs pertaining to that College/Service. Invoices should state for whom the service has been provided but be for the account of the University and be addressed to it..

When the individual makes a claim (or claims) it should be made using the University’s online expense system.

The claim must be approved by the College/Service and processed in the usual manner for expense claims. (See the  for further details). All claims must be supported by receipts, which clearly detail the supplier, the nature of the expenditure, the date of the supply and the amount incurred. This is essential for compliance with the University’s Financial Regulations, Expenses Policy and HMRC regulations.

Where does the money come from?

Colleges/Services are responsible for their own element of the relocation budget and for compliance with the scheme. If expenses other than those approved by HMRC were to be reimbursed then the amount involved could be subject to tax and both employee and employer’s National Insurance (NI) contributions. These would all be chargeable to the College/Service as HMRC would recover them from the employer. They may also charge interest and penalties for non-compliance.

Finance Services will undertake sample checks to monitor compliance with the scheme.

Colleges/Services are required to send a list of staff who have received relocation expenses (including any payments for temporary accommodation which have been paid direct to the supplier) in excess of £8000 within each tax year together with the amount paid to the Pay & Benefits Team Leader in Human Resources (Email payandbenefits@exeter.ac.uk) by 6 April each year in order that the information can be entered onto a P11D for that member of staff.

If the University pays direct for temporary living accommodation, for example in a hotel, and the relocation satisfies all of HM Revenue and Customs qualifying conditions, it will still be exempt from tax but the information must be reported to HM Revenue and Customs on a P11D. The expenditure incurred by the University will count against your total relocation allowance. If the relocation does not meet the qualifying conditions, it becomes a taxable benefit and again must be reported to HM Revenue and Customs on a P11D. The value reported to HMRC is the cost to the University of providing the benefit - ie the gross payment made to the supplier. These details must be provided to the Pay & Benefits Team Leader in Human Resources by your College/Service no later than the end of the tax year in which the expenditure was incurred.

What if the member of staff leaves resigns?

The scheme provides for the recovery of an element of the relocation assistance should the member of staff leave within the first three years after their appointment. In order that the payment can be deducted from their final salary payments schools and services are required to advise the Payroll Supervisor if a member of staff who is leaving within three years of joining the University received relocation assistance on joining and the total amount paid.

Staff should be reminded of the need to notify their College/Service and their HR Business Partner of any changes to their home address or telephone number. (This information can be updated by the employee through Trent Self Service.)

What is covered under the Scheme?

New appointees may ask whether the University will contribute towards the costs of temporary accommodation near their new place of work (ie after they have started their new job but before they have sold their current home). "Temporary living accommodation" is an allowable expense (against the tax-free relocation allowance) within the HMRC’s regulations only where the employee intends to move to permanent accommodation to complete the relocation. Contributions towards the cost of such accommodation will not be eligible for exemption from tax where a person is posted to a new location and moves into accommodation, which they occupy for a considerable period as their main residence.

In view of the HMRC rules on this, Colleges/Services are advised that reimbursement of property rental costs should not be made until the employee has moved into their permanent accommodation. Any reimbursement will count against the tax-free relocation assistance specified in the letter of appointment.

HM Revenue & Customs rules restrict the total tax-free and NI-free amount allowable per house move to £8,000. Consequently, this can affect a couple (whether married, in a civil partnership or cohabiting) who are both appointed to positions at the University. If they were both paid relocation expenses when moving to the same property which, totalled together, exceeded £8,000, they would incur a tax liability. To avoid this, where a couple are both appointed to positions at the University, it has been decided that only one of partners will be entitled to relocation assistance under this scheme. Where this applies, the new appointees should confirm with Human Resources which partner is covered by this scheme: Human Resources will confirm with the two employing units which new employee will qualify for assistance, what the level of assistance will be and which unit(s) will fund this.