Doctors can claim expenses for moving due to their employment including the reimbursement of removal expenses, legal costs and other services. Where your employer reimburses relocation expenses, they may be exempt from income tax up to a maximum of £8,000. The exemption applies to removal benefits and to the payment or reimbursement of removal expenses.
These expenses will qualify for tax relief if they are ‘reasonably provided’ in connection with a change in your residence, for example because you are newly employed, or because there has been a change in your duties and/or the location of your employment.
To qualify, the expenses must be incurred or the benefits must be provided before the end of the tax year after the one in which your employment duties changed.
If you cannot use all of your exemption before the end of your time limit, consider contacting your tax office about an extension. They may be able to extend the time limit if, for example, you have to delay moving to allow a child to complete school exams, or because you cannot sell your old home within the time limit.
Qualifying removal expenses will include:
- legal fees in connection with the acquisition of a new residence (including SDLT)
- providing replacement domestic goods
- legal fees in connection with the disposal of a former residence
- costs of transporting belongings including temporary storage costs
- T&S for the employee and family to visit the new area. This could include travel costs paid by the NHS in lieu of relocation where there is a valid reason why the relocation to the new place of work cannot take place immediately.
Receipts for all expenses should be kept in case HMRC requires evidence.
More information on tax relief on relocation expenses