Reply to: Relocation costs

[FunctionCall]

There's a lot of guff written about relocation expenses, even by accountants. I asked HMRC, and their response was that there are no special relocation rules for PSCs, you just follow the relocation regulations like everyone else.

So if your company's business moves, you can claim relocation expenses (and I have done so). But there are a number of caveats, including that there has to be a genuine business benefit to the move (not just that you fancy living somewhere nicer), and of course once you've moved you can't claim travel expenses for getting to work because by definition you're moving to be close to an area of work. In my case, the total expenses I claimed for the financial year were actually reduced - the extra relocation costs were more than balanced by the reduction in hotel and travel - so HMRC gained as well.

I'd imagine in the specific case that relocation was claimable, because it would be if the poster was relocating for a permanent job, though obviously consult expert advice. The one wrinkle here is that his limited company can't make him an offer of employment before it's incorporated, so I'd imagine that you'd have to incorporate the company before flying.

[washed up contractor]

One of your buddies got a permanent job offer and part of that offer included relocation costs. Because the employer offered them relocation costs, they also offered a lower salary to get that money back over a period of time. It’s not “another story”, they weren’t underpaying him. They were a business who invested £20k+ in getting him to start work for them, and if he quit early in his permanent job with them, they would want to make sure they got their £20k+ back.

So, if you want a company to pay your relocation costs, you need to accept a permanent job with them, agreeing the salary and relocation costs as part of your contract of employment.

This umbrella company you say you have a signed contract with, have they told you how much they will be paying you? Not a %, not based on you doing any work, not a variable, but a “We will pay you £xxx per day/month/year”?

Have they put in any restrictions on paying you, such as having a contract with a client and having signed timesheets?

All good points but he doesnt want to hear that, does he? He wants people to say 'yes, you can!'

[WTFH]

One of my buddies got paid the 8K allowance when he moved here. They paid for the letting agent and two weeks of hotel accomodation. But he was permy. They bought his airfare too. They wanted him to pay it back when he left them after realising he was underpaid and could make 150% than what he was makeing, but thats another story.

One of your buddies got a permanent job offer and part of that offer included relocation costs. Because the employer offered them relocation costs, they also offered a lower salary to get that money back over a period of time. It’s not “another story”, they weren’t underpaying him. They were a business who invested £20k+ in getting him to start work for them, and if he quit early in his permanent job with them, they would want to make sure they got their £20k+ back.

So, if you want a company to pay your relocation costs, you need to accept a permanent job with them, agreeing the salary and relocation costs as part of your contract of employment.

This umbrella company you say you have a signed contract with, have they told you how much they will be paying you? Not a %, not based on you doing any work, not a variable, but a “We will pay you £xxx per day/month/year”?

Have they put in any restrictions on paying you, such as having a contract with a client and having signed timesheets?

[MrButton]

So should the question have been (assuming that this was inside IR35) "Who really is my employer?".

I didn't come here to start a bitchfest. I want solutions not your pathetic rants.

You’ve had some good advice here so read it and don’t be a knob.

I now see why I keep reading about NZ having a large skills gap!

[pbarber]

So should the question have been (assuming that this was inside IR35) "Who really is my employer?".

I didn't come here to start a bitchfest. I want solutions not your pathetic rants.

[WordIsBond]

I appreciate that (ie get tax relief on it)...I was basically saying I don't feel that's an option. If the end client was prepared to pay it, then that may work as they're "forcing" the relocation. If they're not, then I can't see any justification for it.

Note to self: Next time you think Chris Maslins missed the point, consider that you may be missing the point he was making.

[Maslins]

I don't think that's what he's after. I think he wants a brolly that will do it out of his contracting fees.

I appreciate that (ie get tax relief on it)...I was basically saying I don't feel that's an option. If the end client was prepared to pay it, then that may work as they're "forcing" the relocation. If they're not, then I can't see any justification for it.

[washed up contractor]

Personally I don't see any justification for claiming anything. Your (currently non existent) Ltd Co is not forcing you to move.

This. Sounds like a dodge to fund entry \ return to the UK via company money rather than personal money.

[barrydidit]

I don't think that's what he's after. I think he wants a brolly that will do it out of his contracting fees.

That is how I read it.

No, I read it as he's trying to get tax relief on the costs so we can subsidise his move...

I read it the same.

Dear me - separate beds in the Northern household this weekend then if the OP doesn't clarify what he meant.

[northernladuk]

No, I read it as he's trying to get tax relief on the costs so we can subsidise his move...

I read it the same.

[malvolio]

That is how I read it.

No, I read it as he's trying to get tax relief on the costs so we can subsidise his move...

[northernladyuk]

I don't think that's what he's after. I think he wants a brolly that will do it out of his contracting fees.

That is how I read it.

[WordIsBond]

Ask the client if they're prepared to pay your relocation fees. If they are, great. If they're not...then give up.

I don't think that's what he's after. I think he wants a brolly that will do it out of his contracting fees.

[Maslins]

"These are only qualifying costs when:

a new employee is moving area to start a job with you"

I am in NZ. I am moving to the UK to start employment with the umbrella. I have a signed contract with myself and the umbrella. I am a new employee moving to start work. I cannot substitute someone else. etc. so it has to be. I need an expensive plane ticket in order to start.

Anyhow, any brollies that can do this, feel free to get in touch

Ask the client if they're prepared to pay your relocation fees. If they are, great. If they're not...then give up.

[pr1]

Getting nearer to IR35 and no expenses. Carry on....

"I have a signed contract with myself and the umbrella"