Expenses and benefits: relocation costs

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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:

Non-qualifying benefits that you arrange and pay the supplier directly

You must:

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