Aims and purpose
As a result of taking up a post, we will consider reimbursing employees (at least in part) for the financial cost incurred in relocating your permanent residence to within daily travelling distance of your University of Bath work location.
This procedure describes the eligibility for assistance, details of the allowances which are covered and the procedure to follow for claiming relocation assistance.
We also operate a separate Visa Reimbursement Scheme (effective from 1 August 2022) and Interest-Free Loan Scheme for new and existing employees. This is to help with the costs associated with Home Office application fees and related legal advice. These schemes are separate to the Relocation Procedure and you will be able to apply for either scheme once you have started employment at the University.
Eligibility
You will be able to apply to receive assistance where you meet the following criteria:
- you are a new employee on an open-ended or fixed-term contract of employment of 12 months or more
- your present home is more than 30 miles from your work location
- your new home is within 30 miles of your work location
- it must be a reasonable expectation that you would have to move house in order to take up employment in your new post at the University of Bath
- you have moved home
Allowances
Actual expenses incurred in relocating from within the UK or from overseas will be reimbursed at the equivalent of 7.5% of your annual gross salary at the time of taking up your appointment at the University (applicable to new joiners from 1 August 2022*).
Only expenses which fall within the HM Revenue and Customs (HMRC) guidelines will be considered.
Only expenses incurred in the tax year that you join the University and the one following will be considered.
If you are unclear as to whether an item may be claimed, please seek guidance from the HR Recruitment Team before making your purchase.
Any proposed relocation to a new residence further than 30 miles from your work location must be agreed in advance by the Deputy Director (HR Services) or nominee.
A business case will need to be submitted and approval sought from the relevant Dean or Head of Professional Service area where departments wish to exceptionally reimburse employees beyond the standard relocation allowance or HMRC tax threshold.
Exclusions
You will not be eligible to make a claim for assistance under the scheme if:
any other member of your household is claiming, or will be claiming, relocation expenses in connection with the move, either from the University or from any other source; and/or
you hold a Marie Curie Fellow appointment or similar contract which incorporates a mobility allowance as part of your contract
Exemption from tax and National Insurance
HMRC allows tax and National Insurance (NI) exemption on relocation expenses within certain guidelines. Full information can be obtained from the HMRC website. A summary of Revenue rules are provided below for general guidance, but as HMRC may alter these from time to time, you are advised to check directly with HMRC as the University will not be responsible for any tax liabilities which may be incurred.
Your relocation allowance will be exempt from tax (to a maximum of £8,000) and NI contributions as long as the following conditions are met:
- you have to move home to take up a new job
- your existing home is not within reasonable daily travelling distance
- your new home is within reasonable daily travelling distance
- expenses must be incurred, or the benefits provided, before the end of the tax year following the tax year in which your new job is started
The UK tax year runs from 6 April in one year to 5 April the next.
Examples
| Start date of new job | Expenses must be incurred by |
|---|---|
| 1 March 2020 | 5 April 2021 |
| 1 September 2020 | 5 April 2022 |
If you do not relocate within the HMRC timescales, in exceptional circumstances, the University may still consider the payment of relocation expenses, so long as there is a genuine intention to move. The Deputy Director (HR Services) or nominee will make a decision on any such case. Any monies paid for relocation expenses incurred outside of the HMRC timescales however are likely to be subject to tax and NI by HMRC, unless the tax office agrees to extend the time limit. Further information on the circumstances when the time limit may be extended can be found on the HMRC website.
On the Relocation Expenses Claim Form you will be asked to self-declare whether you are or have been a resident in the UK. The Payroll Team will use this self-declaration to determine whether a tax exemption is applicable for expenses that fall outside of the HMRC threshold.
Applying for relocation expenses
The following guidelines should be applied when making applications:
- applications must be made on a relocation expenses claim form
- applications should be submitted to the HR Recruitment Team
- claims must be accompanied by receipts for payments made, in your name, which show the company number/VAT number, but consideration will also be given to miscellaneous expenses where it is not possible to provide receipts. Such claims should give details of each item and the expenditure claimed
- claims cannot be made in advance of the date on which the appointment is taken up, and no advances will be made.
- separate forms should be used where different currencies are involved in the claim
- no payments will be made for claims submitted after you have given notice of resignation or are dismissed from the University
Acceptance
Accept all the terms of this scheme will be a condition for receiving assistance.
Examples of expenses which can be claimed
Here are the most common types of expenses which may be claimed, however this is not an exhaustive list.
| Costs | Allowable | Not allowable |
|---|---|---|
| Cost of disposing of existing home | Legal or estate agent fees | Cost of re-directing mail |
| Advertising | Cleaning costs | |
| Disconnecting gas, water etc. | ||
| Travel and subsistence | Mileage (from old home to new home or work location) | Costs of food and drink (except breakfast where Bed & Breakfast is booked) |
| Second class rail fare only (from old home to new home/work location) | Daily travel costs to University | |
| Immediate family visits to new location – maximum two visits | Bonds required for rent/rent deposits | |
| Commuting costs to old home (or point of exit from the UK) from hotel or bed and breakfast accommodation within the UK for two months | Rent payments once the employee has no property commitments at the previous location | |
| Temporary rented accommodation for a maximum of six months in permitted circumstances. See HMRC guidance | ||
| Cost of acquiring new home | Legal fees and services | Stamp duty |
| Loan arrangement costs | Utility bills | |
| Surveys and valuations | Council tax | |
| Land Registry fees | ||
| Relocation management administration fees | ||
| Connecting gas, water etc. | ||
| Replacement of domestic goods which cannot be relocated from the previous property | Carpets, curtains etc. if old ones are unsuitable for new house (in excess of funds received from selling of unsuitable goods) | Items for second homes |
| White domestic goods if previously fitted | Decorating materials | |
| Gardening materials | ||
| Kitchen equipment such as toaster, kettle | ||
| Linen/bedding items | ||
| Furniture | ||
| Cost of moving possessions | Packing and unpacking | |
| Temporary storage | ||
| Transportation costs | ||
| Insurance in transit | ||
| Costs associated with obtaining permission to work in the UK (a separate Visa Reimbursement Scheme and Interest-Free Loan Scheme are in place to help with these costs) | New visa costs for employee and their dependants | |
| Visa extensions, switching or re-applications for continuing to work in the UK for employee and their dependants | ||
| NHS surcharge costs for employee and their dependants | ||
| Associated visa costs such as priority or premium service fees, English Language Test |
If you leave the University
If you resign or are dismissed from your employment contract, you will be required to repay on a pro-rata basis any relocation assistance received from the University as follows:
- less than one year from start of employment – 100% of relocation claim
- more than one year but less than two years from start of employment – 50% of relocation claim
- more than two years but less than three years from start of employment – 25% of relocation claim
If an expense is incurred and the house move doesn't go ahead, the expense will have to be recovered over the same period it was paid.
Procedure updates
* The relocation procedure is reviewed periodically to take into account changing legislative and organisational requirements. You are therefore advised to check which version of the procedure is applicable to you when making a claim for expenses. View previous versions of the procedure (pre-1 August 2022).
Document control
Date of last review: 4 July 2022