Relocation allowance?

indiechickuk

I'm about to start a new job, and will be moving from London to Manchester. My new employer (which is a small business) has included a £3k relocation allowance as part of my package, and just said that I need to provide receipts and claim by the end of the next financial year.

I've been looking for more information online, but am still slightly unclear as to what I can and can't claim for. The new flat is furnished, but I will need to get a kettle/toaster/microwave. Lots of the documents suggest white goods are covered, but would small appliances also be?

I'm going to be moving out of the house I owned with my now ex-husband, and therefore will also be leaving behind things like the television, but I'm assuming that's probably not something I can claim for?

I don't want to 'lose' the allowance, as it's partly been offered as a way of matching my previous salary, so I want to be sure I'm claiming for the things that I can!

Anyone able to help?! Thanks!

Andy_L

Ask your employer

indiechickuk

Andy_L wrote: »

Ask your employer

Thanks - I have done that, but as it's a very small company and they've not been through this process before either, they're not 100% clear. They are looking to get some clarity, but I just thought others may have some experience of this?

Ozzuk

The expenses and benefits paid to the employee must be in at least one of six categories:-



• the employee’s sale of their former home
• the purchase of a new home
• transportation of the employee’s belongings to their new home
• associated travel and subsistence costs
• domestic goods for the new home
• bridging loans in relation to the purchase of the new home

source: https://www.taxinsider.co.uk/394-Relocation_Allowance.html

getmore4less

it's up to the employer

They can pay for anything they want.

for it to be tax free it needs to fall within the acceptable categories.
plenty of guidance on HMRC and other sites

With a move that far £3k will be used up quickly if moving house even from rental to rental you can use that up.

indiechickuk

Ozzuk wrote: »

• domestic goods for the new home

Thanks - But that's the bit I haven't been able to find any clarity on - every article I've found seems to suggest that there is no definitive list of what's considered a domestic good.

getmore4less

https://www.gov.uk/expenses-and-benefits-relocation/whats-exempt

or the manual
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim03100

edit domestic goods

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim03120

indiechickuk

thank you for the links - I had found these, but I'm still not really any clearer. It talks about purchasing items when the item in the prior property isn't suitable, but in my case it's that the new property doesn't have them and they are items I will need.

Sorry - not meaning to ask silly questions, but I've been hunting and hunting for info and nothing seems to be that definitive! My employer seems to be having the same issue (and is attempting to get through to someone at HMRC to check!)

Hopefully that means it doesn't matter too much and I can probably claim for my kettle!

getmore4less

Focus on the big stuff first worry about the little things if you don't use up £3k

renalt

getmore4less wrote: »

Focus on the big stuff first worry about the little things if you don't use up £3k

I agree. Concentrate on getting a decent area to move to. Some areas of Manchester are great. Some are not.

indiechickuk

getmore4less wrote: »

Focus on the big stuff first worry about the little things if you don't use up £3k

All of the 'big' stuff is already sorted, I have the flat already (in a very nice area), have most of my belongings already packed, and have booked the van. But what I've paid out so far isn't going to come anywhere near £3k, and actually the remaining expenses will be the smaller things that I need.

It would just be a shame if I can't claim for some of those items, as those are the things I will be out of pocket for, and they may be small but a few small things do add up. I appreciate it's not a massive issue, I just want to make sure I'm not missing out by not claiming.