Relocation Assistance Tax Credit

adebar

Hi MSE,

I relocated to the UK from overseas in tax year 2013/14 and was awarded relocation assistance (<8,000 GBP) paid in cash from my employer. When the relocation assistance was paid out, some tax was taken out of the full amount.

According to information from my employer and some information* on gov.uk, relocation assistance of up to 8,000 GBP is tax free if it falls under certain qualifying categories (moving costs, buying certain things for a 
new home). Can you please help me and

1. confirm that relocation cost is indeed tax free and
2. help me understand how to claim back tax that was taken out of the relocation reimbursement payment (ie. what forms to fill out etc.)

Thanks a lot for your help!

* This is my first post; unfortunately the system does not allow me to post links, so here you go (please copy & paste): gov.uk/expenses-and-benefits-relocation/overview

[Deleted User]

1)YES in most circumstances
2)will probably have to wait till april 16 to recover over paid taxes this tax year

adebar

Thanks for your quick reply, woodbine. On point 2, the relocation was paid out in 2013/14. So should be ready to claim this. In order to do recover, do I have to fill out a self assessment for 2013/14? Is there any other way to recover the overpaid taxes?

NYM

You're correct in that Relocation Expenses - providing they meet the conditions - qualify for exemption. Your employer is the one at fault here as it's their responsibility to record the payment correctly.

Post your question on the --> Cutting Tax board. They'll advise you I'm sure.

adebar

Thanks, I've cross-posted this on the cutting tax board.