What to Include in Your Employee Relocation Expenses List
A relocation expenses list is an important document to include when relocating employees. It’s necessary, not only because it provides useful information about what to expect, but also because it can help you avoid legal trouble as an employer. It helps you keep things on the up and up while your employee gets settled in at their new home. If you want to know more about this, here’s what you need to know about preparing an employee relocation expenses list and what should be included.
Top 5 Considerations When Creating a Moving Expense List
When creating a moving expense list, there are several factors that you should keep in mind. For instance, your current residence and destination will affect how much you’ll need to budget for relocation expenses. Moving costs will also depend on whether you’re hiring movers or planning on packing yourself, among other things. Below are some of the top considerations when creating a moving expense list.
- Sale or Move Assistance – expenses should be costs incurred by employees moving out of rental accommodation such as exit fees and legal fees regarding selling.
- House Hunting Costs – fees associated with house-hunting in a different area should be considered but this can get difficult if moving internationally so consider what to cover.
- Temporary Housing – in some cases, especially internationally, it can be easier to place employees in temporary housing while they look for something more permanent.
- Removal and Transportation – consider allowing for expenses on transporting goods to the new location and any associated shipping costs.
- Additional Costs – there may also be additional miscellaneous costs the employee feels they shouldn’t have to pay, such as professional cleaning.
The purpose of creating a moving expense list is to help you estimate how much money you’ll need to pay for certain expenses during your move – for example, there will be different costs required if you’re driving across the country versus flying into town and renting a car once you arrive. Our recent blog has some excellent tips for saving on employee relocations.
Are Relocation Expenses Exempt from Tax?
Some costs of relocation are exempt from tax up to a budget of £8000. These expenses are known as qualifying costs and they include a number of aspects of the removal process. If you are wondering which expenses are exempt from tax then we have included a list of the tax exemptions below;
- Costs of selling and buying their property
- Any costs related to the actual move
- Transport and removal related costs
- Spend related to fixings and fittings in the new home
- Bridging loans in the event the sale of their property is incomplete
Issues Arising from Employee Relocation
It is important you set out the expenses covered for relocating before your employee agrees to relocate and everything is clear and upfront. Issues can arise mid-move if the employee feels there is something that should be covered by the employer that wasn’t specified. Whether or not you can insist on an employee relocating will depend on the terms of their contract but you should think carefully before insisting that an employee needs to move. It is always best to take on board the employee’s needs and requirements before encouraging them to move as they could be difficult in their demands.
The above is our guide to some of the top aspects of expenses for employee relocation but if you are looking for further support then get in touch with Gerson Relocation. Our services provide support to make sure that you have provided your employees with everything they need for moving abroad.
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