Relocation expenses

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cally1990

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If a person owns a home but needs to move a significant distance eg cork to Dublin to take up a role, can an employer pay the relocation expenses eg 3 months rent tax free ? I won't be selling my home and will be going back on weekends

I'm not 100% sure here , a relocation package is there from employer but am I technically relocating ? Or rather living away from home (is that ok?

Any accountants / tax accountants can shed some light on this ?

Any proper guidance on this ? I can't find this example on revenue ,

It's a 24 month role
 
It is a Benefit In Kind. It is up to the Employer of they are going to pay it. RTE did for their previous DG when they moved to 'Dublin' from 'Cork'.
 
cally1990 said:
Thanks, I've read that and the key piece is moving home , but if I still have my home and I'm just living away renting , then is that considered relocating as I'll be commuting back on weekends ? That's my concern :-( , it's a pity there isn't practical example provided like their other manuals
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I think you have your own answer there - my reading of it is you're not really relocating your residence, you're simply working away from home, albeit for an extended period...
 
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torblednam said:
I think you have your own answer there - my reading of it is you're not really relocating your residence, you're simply working away from home, albeit for an extended period...
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havent read the revenue piece, but staying away from home for work....is that really BIK ? What about all the sales people travelling? or people who have to go to London/New York/Paris etc for business trips?
 
daheff said:
from home for work....is that really BIK ? What about all the sales people travelling? or people who have to go to London/New York/Paris etc for business trips?
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That would count as travel expenses away from the usual place of business I imagine whereas the OP arrangement isn't travel expenses - the usual place of business isn't changing. I think as OP is not relocating, it wouldn't count as relocation expenses. I would see it as similar to the many people who commute to dublin for 2 days a week (with hybrid) and stay in a B&B which they pay for themselves, and live down the country / work remotely the rest of the time. I think this would be like the employer paying for the B&B despite you working in the usual place of business which would be BIK
 
daheff said:
havent read the revenue piece, but staying away from home for work....is that really BIK ? What about all the sales people travelling? or people who have to go to London/New York/Paris etc for business trips?
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I think the distinction you're missing in the context of this thread is that the OP has said it's a new role.

If you are offered a new job in a new location (possibly with a new employer) and accept it, your place of work changes to that location, so the cost to you of getting there is simply your commute.

The relocation expenses concession - and that is what it is, because on strict application of the tax legislation any such expenses are taxable in pretty much all cases - is to allow some flexibility around the arrangements that need to be put in place when a person is upping sticks and moving their residence to take up a new job. It sits less easily with modern working arrangements, and is more an artifact of how things were 20+ years ago, when people were generally less mobile (in both work and residence).
 
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I had relocation expenses paid for me some years ago when I had to move for a new role. But I had a strict limit on what I could claim, the time period etc. And I was actually moving my home.

I don’t think this situation is the same as the OP isn’t moving, just commuting.
 
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