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Where Taxpayers and Advisers Meet

Military removals tax reief

cwodavids
Posts: 12
Joined: Sat Jul 28, 2018 5:34 pm

Military removals tax reief

Postby cwodavids » Mon Jan 13, 2020 10:53 pm

I have read the following on page 47 of the HMRC guide - 490 - Employee Travel

"Removal expenses
Where an employee has to move home because of their work, the employee is entitled
to tax relief for the first £8,000 of qualifying removal expenses where these are paid or
reimbursed by, or on behalf of, the employer. Employees are not entitled to tax relief for
expenses they pay out of their own funds and which their employer does not reimburse.

Some of the removal expenses for which tax relief is available include the cost of making
certain journeys and related subsistence.

For example they might include:

• preliminary visits to the new location
• travelling between the old home and the new workplace
• travelling between the new home and the old workplace (where the employee moves
house before moving jobs)
• temporary living accommodation
• travelling between the old home and the temporary living accommodation
• travelling from the new home to the temporary living accommodation (where the
employee moves house before moving jobs)
• travelling from the old home to the new home when the employee
moves house"


If I have read it correctly, as UK military posted to the USA for 3 years on an exchange posting, I am able to claim back my flights and removal costs, even although these were paid for by the MoD? Have I made this up with wishful thinking?

Kind regards

Dave

cwodavids
Posts: 12
Joined: Sat Jul 28, 2018 5:34 pm

Re: Military removals tax reief

Postby cwodavids » Tue Jan 14, 2020 4:06 pm

Anyone? :|

darthblingbling
Posts: 349
Joined: Wed Aug 02, 2017 9:09 pm

Re: Military removals tax reief

Postby darthblingbling » Tue Jan 14, 2020 7:44 pm

No, your employer met the costs, why would you get additional relief on expenses you didn't incur?

darthblingbling
Posts: 349
Joined: Wed Aug 02, 2017 9:09 pm

Re: Military removals tax reief

Postby darthblingbling » Tue Jan 14, 2020 7:45 pm

Unless you mean you were reimbursed?

cwodavids
Posts: 12
Joined: Sat Jul 28, 2018 5:34 pm

Re: Military removals tax reief

Postby cwodavids » Tue Jan 14, 2020 8:12 pm

No, your employer met the costs, why would you get additional relief on expenses you didn't incur?
This is why I was asking as the guide seems to be quite clear, it is NOT for out of pocket expenses...

"Where an employee has to move home because of their work, the employee is entitled
to tax relief for the first £8,000 of qualifying removal expenses where these are paid or
reimbursed by
, or on behalf of, the employer. Employees are not entitled to tax relief for
expenses they pay out of their own funds and which their employer does not reimburse."

This seems to say if my employer paid OR reimbursed me that I can claim the tax relief.... It does seem random, but legitimate.

darthblingbling
Posts: 349
Joined: Wed Aug 02, 2017 9:09 pm

Re: Military removals tax reief

Postby darthblingbling » Tue Jan 14, 2020 8:16 pm

If reimbursed then this can be done tax free, or the employer pays direct to the supplier the expense not taxable on the employee.

cwodavids
Posts: 12
Joined: Sat Jul 28, 2018 5:34 pm

Re: Military removals tax reief

Postby cwodavids » Tue Jan 14, 2020 9:31 pm

It does explicitly say if it is paid BY the employer then tax relief can be claimed.... It makes no sense as to why this would be the case, but that is exactly what it says, no?

robbob
Posts: 2964
Joined: Wed Aug 06, 2008 4:01 pm

Re: Military removals tax reief

Postby robbob » Wed Jan 15, 2020 8:55 am

cwodavids
It does explicitly say if it is paid BY the employer then tax relief can be claimed.... It makes no sense as to why this would be the case, but that is exactly what it says, no?
I see where you are coming from cwodavids with the wording , i think what hmrc are trying to convey here (very poorly) is that if the expense it met by the employer relief can be granted so the employer can therefore treat these expenses as being non taxable - thereby giving the employee the relief they are eligible for. The fact is you have received the tax relief - if you had not had the tax relief you would have been taxed (or subject to benefit charge) on the value of the expenses paid by the employer.


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