Cat. J. Qualifying relocation

"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: "Menu", then "Add expense claim"
5. Select the person who's moving.
6. If you've got an image, like a receipt, that you'd like to include, you can upload, or take a photo of it.
7. Then tap: Next
8. And select "Moving costs", 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 when it's a payroll admin who's entering it, the expense is automatically approved.
11. 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, tap: "Menu", then "Add / deduct from pay"
2. Next, tap: Benefit-in-kind
3. Then select: One-off
4. And again select the person who's moving.
5. You can re-attach the same image again, or tap: Skip image
6. Select "Qualifying relocation", and tap: Next
7. Next, calculate the amount that's remaining, over the £8,000 tax-free limit.
8. Then enter that remaining amount only.
9. And when it's a payroll admin who's entering it, the expense is automatically approved.
10. And when you hover your mouse over the "Benefit-in-kind" amount, you'll see the details.
11. And finally, it's in addition to the "Expenses" amount you entered earlier. Both are repaid together on the same payslip.

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 "One-off taxable benefit" reimbursement, watch the video on: One-off benefit-in-kind

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 payslip 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!