RELOCATION BLOG
Are you relocating employees to the UK? Here we try to make the subject of relocation taxation a little clearer for you to understand.
If your organisation is considering relocating an employee to the UK or is already contributing towards employee relocation costs, the organisation will incur certain tax, National Insurance and reporting obligations, so you need to be aware of which relocation costs incur tax and what needs to be reported to HMRC.
The Government adverts tell us that "tax needn't be taxing". Well it is and UK domestic employee relocation costs are no exception. The subject of tax is almost as confusing as the British electorate but here we will try to make the subject a little clearer to understand.
If your organisation contributes towards employee relocation costs, the organisation has certain tax, National Insurance and reporting obligations, so you need to be aware of which relocation costs incur tax and what needs to be reported to HMRC. In terms of the technicalities of reporting, you can very happily leave that to your accounts department to deal with.
Love it or loathe it, your relocation policy is an evolving beast. At least it should be. When was the last time you reviewed your policy?
When?!?! Tut tut.
I have worked with some companies that review their relocation policy every year and I have worked with others that haven't reviewed their policy at all. An annual review is probably a bit over the top, but to never review your relocation policy could be damaging to your business.
