Relocation Expenditure - Taxable?

My client returned back to the UK to work for the NHS and recieved £18.5k relocation Expenditure.

Didn't find your answer?

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)

Please login or register to join the discussion.

avatar
By paul.benny
21st Jan 2021 08:37

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.

Thanks (0)
Replying to paul.benny:
avatar
By rookie101
21st Jan 2021 09:21

paul.benny wrote:

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.

Hi Paul,

Thank you for the reply. It is a weird one as the department of NHS that paid him this did so in stages. He presented receipts and they reimbursed him up until it reached £18.5k.

He was never employed by them for other work as he went on to be employed by a local trust. So from this particular NHS department he had no P60 for the year or P11d that they declared.

He never mentioned at the time as he thought it wasn't taxable.

Thanks (0)
avatar
By paul.benny
21st Jan 2021 11:36

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.

Thanks (0)