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HMRC internal manual

Employment Income Manual

removal or transfer costs: expenses and benefits reporting requirements: forms P11D and P9D


The exemption for removal expenses and benefits to which Section 271 ITEPA 2003 applies is limited to £8,000 per employee per relocation. If the total of these expenses and benefits exceeds £8,000 the excess is taxable.

The PAYE regulations state that PAYE should not be deducted from qualifying expenses that together with benefits exceed the limit of £8,000. The regulations say the excess should instead be reported on form P11D or form P9D (for 2015/16 and earlier).

Payments to an employee that are not qualifying expenses, for example a compensation payment for loss on sale (see EIM03126) should follow the normal PAYE rules.