Dear All,
After a stint abroad as a GP, my client returned back to the UK. NHS have a drive to bring doctors back and offer some generation "welcome back" perks.
One of them being £18.5k which they labelled as relocation support. I seen on the HMRC site that £8,000 of eligble relocation costs are allowable.
On the agreement it stated the following breakdown;
Moving Costs: This must only be used for moving costs and not accommodation and transport once in England. (Max allowance £10k)
Inidividual requirments: The remaining £8,500 can be spent to meet the GPs individual requirements and can cover any of the following aspects of relocation;
- Moving costs
- Accomodation
- Transport
(Maximum allowance £8.5k)
I am currently processing his self assessment and was wondering if this needs to be included in anyway. He asked NHS for any guidance and they said it is your responsbility to deal with any fall out. Any help would be greatly appreciated.
Replies (3)
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Guidance for employers here:
https://www.gov.uk/expenses-and-benefits-relocation
With P11d and P60, you should be able to work out employee position fairly easily.
This doesn't look like the full story.
I'm not familiar with how NHS employment contracts and payroll are structured. Nevertheless, is seems odd that a person would be paid £18,500 relocation expenses yet never be employed.
That aside, I think you would struggle to convince HMRC that the relocation expenses weren't employment income and therefore income tax is due on everything above £8,000 of qualifying expenditure. But with >£4,000 at stake, you might want to try.