Reimbursing relocation expenses
Any work-related relocation payments you make to your employees are tax free to them if:
- they are relocating to:
- take up employment with a new employer, or
- take up new duties at a new location with you, or
- continuing in their current position, but at a new location, and
- their existing home is not within reasonable daily travelling distance of the new workplace (unless accommodation is provided as an integral part of the job), and
- the expense is on the list of eligible relocation expenses, and
- the payment reflects the actual expenditure incurred, and
- the expenditure is incurred before the end of the tax year following the year they relocate.
Read our Determination DET 09/04 for more information about eligible relocation expenses.