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How to claim relocation allowance?

Hi,
I live in Bournemouth, but have just been offered a job in Bristol. The job is for a big company, but was procured by a
recruitment consultancy.
The recruitment consultancy are quite closely related to the company, at least i think so.

I think its the recruitment company that will be paying my wages. Its on PAYE, and is a per Annum wage.

At first i will have to stay in Travelodge or B&B until i find some permanent digs. The recruitment place have said they will
pay me up to £5k relocation package, but that i must show them my receipts.

In the Travelodge web page, it shows "previous Bookings", should i just screen shot this to provide as a receipt?

Here is what the recruitment place wrote to me...

QUOTE>>On top of this we would also like to include a £5k relocation package to help you get down to Bristol,
this will cover any moving related expenses up to £5k, please keep your receipts and these will be refunded to you.

END OF QUOTE

Comments

  • MSE_ForumTeam5
    MSE_ForumTeam5 Posts: 1,392 Community Admin
    Part of the Furniture 1,000 Posts Photogenic Name Dropper

    @Hi @faringdon we've moved your question to a more suitable part of the forum

    Official MSE Forum Team member. Please use the 'report' button to alert us to problem posts, or email forumteam@moneysavingexpert.com
  • Grumpy_chap
    Grumpy_chap Posts: 21,360 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 21 July at 5:22PM

    Hi,
    I live in Bournemouth, but have just been offered a job in Bristol. The job is for a big company, but was procured by a
    recruitment consultancy.
    The recruitment consultancy are quite closely related to the company, at least i think so.

    I think its the recruitment company that will be paying my wages. Its on PAYE, and is a per Annum wage.

    At first i will have to stay in Travelodge or B&B until i find some permanent digs. The recruitment place have said they will
    pay me up to £5k relocation package, but that i must show them my receipts.

    In the Travelodge web page, it shows "previous Bookings", should i just screen shot this to provide as a receipt?

    Here is what the recruitment place wrote to me...

    QUOTE>>On top of this we would also like to include a £5k relocation package to help you get down to Bristol,
    this will cover any moving related expenses up to £5k, please keep your receipts and these will be refunded to you.

    END OF QUOTE

    So, this is a staff, permanent job and you will be on a normal, straightforward PAYE salary. Is that correct?

    For a permanent staff member, it would normally be the actual employer that pays your wages - not the recruitment company. If the recruitment company are paying your wages, that sounds more like them operating as Umbrella Company for an inside-IR35 contract role. Relocation package would then be very unusual.

    For relocation, the employing company will usually have a policy as to which expenses they cover, including whether that would include hotel / temporary accommodation until you are able to move completely. To satisfy tax requirements, there usually need to be receipts to cover the expenses claimed - the relocation is not being offered as simply a lump sum of £5k.

    Are you in rented accommodation presently and will you be in rented accommodation in Bristol? The sorts of costs that you would be able to claim are referencing costs for the new rental, early termination of utility agreements at current rental, costs of packing and removals firm, etc.

    If you are in owned accommodation, the costs you can claim will be different and quite likely far higher than the £5k allowance offered.

    You will probably need to incur these costs and then claim from the employer against receipts via the expenses process. Only the new employer will be able to advise with any accuracy how this process works at that company.

    One thing I would strongly recommend is that you check with the relocation payments whether there is a minimum period you need to stay employed at the company and any recovery clauses if you do not remain at the company for a minimum period of time.

    I assume your idea to start your own Ltd Co is no longer happening.

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