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bigduckontax
bigduckontax, Accountant
Category: Tax
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I worked employer and they paid relocation to

Resolved Question:

I worked for an employer and they paid relocation for me to move from my home to Hampshire. I have since left and I am paying them £6,000 back from the relocation allowance that they paid me (they paid £8,000).
Can I claim this £8,000 as expenses I incurred and therefore get the tax back? I am conscious I am paying them the £6,000 back from my net pay. ( I no longer work for them so I have a standing order set up to pay them this back over a twelve month period)
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Relocation expenses up to 8K are mot taxable and need not be reported by an employer. You are repaying these and both transactions are outside the scope of UK taxation. Thus there is no tax exposure to reclaim. If, however, they were taxed then the repayment of this could be reclaimed. I do hope that my reply has been of some help.
Customer: replied 1 year ago.
Can i minimise my tax exposure on the repayment at all?
Customer: replied 1 year ago.
As in effect I have paid the £6k from my own pocket and the expense was solely as a result of relocating and thus by repaying it from my net income it has been subject to tax?
Expert:  bigduckontax replied 1 year ago.
Unfortunate, I understand, but you received it gross and must repay it gross. I am so sorry to have to rain on your parade.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
No, it's ok - I thought i was a long shot but figured given the amount involved it was worth asking the questionThanks anyway. Cheers
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance. Thank you for your support.

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