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HMRC internal manual

VAT Input Tax

Specific issues: removal expenses

Directors, partners and sole proprietors 


A business can treat the VAT incurred as its input tax if it reimburses employees for these removal expenses:

  • estate agents’ and solicitors’ fees;
  • storage and removal of household and personal effects; and
  • services such as plumbing in washing machines or altering curtains.

If the business pays part of an expense then only that proportion of the input tax can be claimed. These rules also apply if the employee is a new employee moving home to take up a post.

If a fixed rate allowance is paid there is no input tax to claim. See VIT42500.

HMRC will not reject claims out of hand if the relevant invoices are addressed to the employee rather than the business. We will accept alternative evidence provided the business shows us satisfactory evidence that it has paid for and incurred the VAT on these expenses.

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Directors, partners and sole proprietors

When directors, partners or sole proprietors move home they may have a personal rather than a business purpose. If HMRC is satisfied that the move was for a business purpose we will accept a claim for input tax. See VIT10200 for more on business purpose.

The rules that apply to moves by employees also apply to claims made when directors, partners and sole proprietors move home.