Expenses and benefits: relocation costs
What to report and pay
You do not have to report or deduct anything for qualifying costs up to £8,000.
Qualifying costs over £8,000
You must:
- report on form P11D
- pay Class 1A National Insurance on the amount above £8,000
Non-qualifying benefits that you arrange and pay the supplier directly
You must:
- report on form P11D
- pay Class 1A National Insurance on the cost to you
Non-qualifying benefits that your employee arranges, but you pay the supplier directly
You must:
- report on form P11D
- add the cost to the employee’s other earnings and deduct and pay Class 1 National Insurance (but not PAYE tax) through payroll
Non-qualifying expenses or benefits where you reimburse your employee’s costs
Non-qualifying expenses or benefits where you pay your employee back their costs count as earnings, so you must:
- add them to the employee’s other earnings
- deduct and pay PAYE tax and Class 1 National Insurance through payroll