Commentary

A6.964 Relocation packages

Administration and compliance

A6.964 Relocation packages

A6.964 Relocation packages

There are a number of potential dangers including:

Employees who do not actually relocate — an employee must relocate to qualify for HMRC's tax and National Insurance exemption1. In many cases they incur expenses, for example on hotel accommodation, but do not actually move.

On occasions, the employer initially assumes that the exemption is available and only becomes aware of the issue at a much later stage, usually after the end of the tax year and the P11D deadline. This results in underpayments of tax and National Insurance, and incorrect P11Ds.

Payment of allowance not supported by receipts — HMRC

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