One of the inherent problems of being a contractor is that you have to go where the work is. From time to time this can mean long journeys to work or staying overnight through the week. However there may come a time when the travelling becomes intolerable or impossible and you have to move home to be closer to your workplace.
You may think that the costs of moving your private residence cannot be paid on your behalf by the company. This is not always the case!
If you are required to move home to maintain employment through your limited company, the company can re-imburse your moving expenses up to £8,000 tax free.
To qualify for this you must be moving your main residence. Your existing residence must not be within reasonable daily travelling distance of your place of work and your new residence must be in reasonable travelling distance of your place of work.
Allowable relocation costs include:
•Solicitors fees (sale and purchase)
•Search, survey and property enquiry fees
•Estate agents fees (buying and selling)
•Buying certain items for your new home
Your relocation costs must be reimbursed within the tax year you move house. So, as you can see as long as you fulfil the criteria this can be an extremely generous allowance from HMRC.
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