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J. Qualifying relocation

Qualifying & remaining moving costs4:14
Qualifying & remaining moving costs
1 videos, with a playing time of 4 minutes


 

Qualifying & remaining moving costs4:18

"How do I enter both "qualifying" and remaining moving costs?"

When moving house, your "qualifying" moving cost can be up to the tax-free maximum of £8,000, and is recorded as a "Standard moving expense". Anything over the tax-free maximum of £8,000 is recorded as a: "Remaining moving expense"

To create a "Standard moving expense" for your part up to a tax-free maximum of £8,000:

  1. First, if your total "qualifying" moving costs are over the £8,000 tax-free limit, you'll need to start by creating a "Standard moving expense" for the original £8,000.
  2. And then separately create a "Remaining moving expense" for the remaining amount.
  3. However, keep in mind, if your total cost's less than the £8,000 tax-free limit, you'll only need to do the first step.
  4. To start with the first step, tap: MenuExpense claim
  5. Select the person who's moving.
  6. Then tap: Expense
  7. If you've got an image, like a receipt, that you'd like to include, you can upload, or take a photo of it.
  8. Then tap: Next
  9. If your amount's less than £8,000, then enter it. However, if it's over, enter only £8,000, and tap: Next
  10. And select "Moving costs", then tap: Next
  11. And because it's a payroll admin who's entering it, the expense is automatically approved.
  12. Now, to see how it shows up on the person's paystub, scroll down and tap: See on paystub
  13. And finally, when you hover your mouse over the "Expenses" amount, you'll see the details.

To create an optional "Remaining moving expense" for only when a person's moving cost was over your tax-free maximum of £8,000:

  1. First, again tap: MenuExpense claim
  2. And again select the person who's moving.
  3. Scroll down and select: Benefit-in-kind
  4. You can re-attach the same image again, or tap: Skip image
  5. Next, calculate the amount that's remaining, over the £8,000 tax-free limit.
  6. Then enter that remaining amount only.
  7. Leave "Arranged by" as "Company", and tap: Next
  8. Leave the description empty, and tap: Next
  9. And because it's a payroll admin who's entering it, the expense is automatically approved.
  10. Now, to see how it shows up on the person's paystub, scroll down and tap: See on paystub
  11. And when you hover your mouse over the "Benefit-in-kind" amount, you'll see the details.
  12. And finally, it's in addition to the "Expenses" amount you entered earlier. Both are repaid together on the same paystub.

Keep in mind that:

  • Qualifying moving costs include buying or selling the house, moving, buying things for the house, and bridging loans.
  • If the moving costs are "qualifying" and less than the tax-free maximum of £8,000, there's no tax or National Insurance to pay.
  • If it turns out that the moving expense isn't "qualifying", as an admin, create an "Expense claim" for the person as a: "Once only taxable benefit"
  • To add a "Once only taxable benefit" reimbursement, tap: MenuExpense claim, select the person, and tap: Once only taxable benefit

Also remember that:

  • All the steps assume that it's a payroll admin who's entering the moving costs.
  • If it's the person who's entering them, the only thing that changes is that the payroll admin still needs to approve them.
  • The expense claims won't show up on the person's paystub until the payroll admin has approved them.

To learn more:

  • About what's included in the "qualifying" relocation costs, go to GOV.UK.
  • Also, if you're searching the internet for more info, HMRC sometimes labels "moving costs" as: "qualifying costs"

And that's it! That's everything you need to know about adding "qualifying" moving costs!

Updated: Thu, Nov 2, 2023.

© 2020–2024 1st Money UK Holdings Ltd. All rights reserved.
www.1st.money/help/Expenses/J._Qualifying_relocation/