Relocation expenses

C

cally1990

Registered User
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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'.
 
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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