Policy
The University offers a scheme to provide financial assistance (up to £8,000) for relocation expenses for moves within the UK and from overseas. The scheme is open to newly appointed and centrally funded employees relocating to Cambridge on appointments of two years or more. The scheme does not include staff transferring to a new post within the University nor does it include those who have been promoted (e.g. from assistant staff to officer post).
Procedure
For further details on eligibility and procedure for applying please see the HR web pages.
Tax implications
Where the University reimburses the cost of relocation expenses, payment may be exempt and need not be reported on the P11D if:
- it is within HMRC's limit of £8000;
- covers eligible expenses (as listed on claim form PD36); and
- the expense must have been incurred by the end of the complete tax year following that in which the change took place.
E.g. Employee start date 01 Oct 2013 (thus tax year ending 5th April 14)
Expense must be incurred before 05 Apr 2015 to be non-taxable
If it has been incurred outside the time limit, the payment is processed through the Payroll system and will be liable to tax and National Insurance.
Examples of eligible relocation expenses:
- costs associated with the disposal of old residence, e.g. legal fees
- costs associated with the acquisition of the new residence, e.g. legal fees
- stamp duty
- transporting belongings
- storage costs to a maximum of 26 weeks
- travel costs to port of entry for moves into the UK (at economy class rates or equivalent)
Change of residence criteria
The change of residence must satisfy a number of conditions to qualify. The most important of these conditions is that the employee must change their main residence as a result of one of the following:
- starting a new employment
- a change of duties of the employment
- a change of place of where the duties are performed
- it is not reasonable to travel from the old residence