(Q) HM Revenue and Customs regulations state that I have to claim my relocation expenses by the end of the tax year following my commencement of employment. Can I claim after this date?
(A) Yes with the prior approval of your College Dean/College Manager/Head of Service and the Director of Human Resources. However the relocation paid to you then becomes taxable rather than tax-free. You should submit your claim to your College/Service for authorisation. The form must then be sent to the Pay & Benefits Office in Human Resources for payment rather than via the Expenses system.
(Q) I am moving to the UK from abroad, can I claim for the relocation of my pets?
(A) Yes, as long your total claim is not more than you are allowed but please note, quarantine costs cannot be claimed under relocation.
(Q) I’m not moving house but can I claim for the relocation of my office (books etc)?
(A) No, this cannot be claimed under relocation.
(Q) What expenses can I claim using my tax-free relocation allowance?
Expenses and benefits which qualify for exemption can be grouped into the following categories:
• disposal or intended disposal of old residence (eg legal and estate agency fees)
• acquisition or intended acquisition of new residence (eg legal fees)
• transporting belongings
• travelling and subsistence
• domestic goods for the new residence (While the HMRC does not have a defined list for what can be classed as a “domestic good”, it does cover “white goods” - ie washing machine, fridge, freezer etc – and carpets and curtains where it is necessary to purchase new items to replace items used at the old home that are not suitable for use in the new home. HM Revenue and Customs give the following example: carpets and curtains that were the wrong size for the new home, or an electric cooker bought to replace a gas cooker where there is no gas supply in the new home.)
(Q) I started with the University on a two year fixed term contract and I chose not to relocate. I have now been appointed to a different permanent position with the University, so I will now be relocating. Can I still claim for relocation, even though I have already been with the University two years?
(A) If your new appointment includes an offer of relocation assistance, you will be eligible to claim tax-free relocation expenses because you have a completely new job/new contract. If the only change was that your original job had just been permanent, you could NOT claim for relocation.
(Q) When I left my old property, I bought cleaning products and enlisted a cleaning company to help me clean before I vacated the old property. Can I claim for these within my relocation budget?
(A) No, these cannot be included in your relocation claim.
(Q) I’m relocating to Exeter from abroad. It is so expensive to move my belongings, can I just buy replacements when I arrive in the UK and claim for them?
(A) You cannot claim for replacement goods if you are only replacing them because they are too expensive to ship. Replacement goods that you choose not to bring to the UK because they are not suitable or do not work in the UK (for example a television or domestic appliances such as a washing machine because they operate on a different voltage, etc) can be claimed for.
(Q) Can I claim any of my relocation allowance before I start my new job with the University?
(A) No, you cannot claim for your relocation expenses until after you have started with the University. You can only claim for reimbursement of expenditure you have already incurred. Your claim should be submitted, along with receipts to the Accounts Payable, Finance, Northcote House via the University’s online expenses system – see http://www.exeter.ac.uk/finance/operations/expenses_and_purchasing_cards/staffexpenses/
(Q) I will be relocating but I won’t be purchasing a property, I will be renting and this will be my main residence. Can the agency fees related to this rented property be claimed?
(A) Yes, this can be included in your relocation claim.
(Q) If I live in temporary accommodation (hotel/rented) until my old home is sold and a new home is purchased can I claim for the hotel bills/rent under relocation?
(A) Yes, you can claim for this because the hotel/rented property represents temporary living accommodation, but it will count against your total relocation allowance and therefore reduce the amount available for other expenditure later.
(Q) If the University paid direct for the costs of my temporary living accommodation (for example, while I stay in a hotel, the University pays the hotel rather than me), how is this treated?
(A) 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.
