Ok, my client is moving from old house to new house to be near new job(s)! She will work for 2 companies, 50/50 and both want to give £K towards qualifying relocation expense to employee. Can she claim £8k tax free allowance from both? Excess being declared on P11D with each employer. Have reviewed ITEPA and HMRC guidance can't weed out any directive on whether tax free allownce needs to be only with one employer OR anything wrong with claiming from both companies, no requirement to report and no tax/ni for her and companies.
Some evidence based help despertaly needed for a peace of mind and clarity...
Replies (8)
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S272(1)(a) ITEPA refers to expenses "reasonably provided in connection with a change of the employee’s residence".
If the employee is moving for job with Co. A and being paid relocation expenses by Co. A, then if Co. B also pays, are those expenses "reasonably provided in connection with a change of the employee’s residence"? I'd have thought not, as the change of residence has already taken place for Co. A job.
Also, as tom123 suggests, this doesn't pass the smell test and the payment may just be an otherwise taxable golden hello.
A single exemption can't have multiple limits and in case there was any doubt (and as AccountantA referred) the limit (singular) is linked to the change of residence (singular) - not, as you noted yourself, to the employment(s).
The first question I would ask is, how far away if the new house from the old?
I could move a mile down the road and be 'closer' to work but that wouldn't meet the conditions in s273 ITEPA would it.
If the old house is with a 'reasonable daily travelling' distance, there will be no entitlement to the £8,000 exemption in the first place.