People Experience and Culture Relocation Assistance Policy and Guidance
Policy Statement
The University operates a Relocation Assistance Scheme to support eligible new employees who relocate to take up an appointment with the University of Derby, by providing some financial assistance to ensure that national and international geographical mobility is not a barrier to the appointment of the very best candidates. It is also to support the university’s overall benefits package and to ensure the university is able to offer an appropriately competitive benefits package. This supports the university’s aims of delivering high quality teaching, research and knowledge exchange.
The scheme operates entirely at the discretion of the university and may be revised or terminated at any time and is underpinned by the procedural details contained in the Relocation Assistance Scheme Guidance. The guidance only applies to post currently being recruited and will not be retrospectively applied.
Eligible Expenses
Any relocation assistance expenses will also need to comply with the criteria issued HMRC by which sets out clear guidelines around these types of expenses and specifically which expenses can be classed as non-taxable. Claims will need to be supported by appropriate documentation, will be reimbursed, with no liability for income tax where the total amount being reimbursed is less than the HMRC tax-free limit, currently £8,000 as at April 2023. Any exceptional values about this will be subject to normal taxation rules. The standard rates set out below are a guide.
Please note that claims can only be made against allowable expenditure actually incurred and validated by receipts. See the guidance from HMRC for more details on. For staff relocating from overseas and/ or requiring a visa, the University also facilitates a visa loan to help with expenses (see below). Initial appointments must be for three years or more.
Strict HMRC rules govern when expenses may be made/ incurred to qualify. The expenses must be incurred, or the benefit provided, before the last day of the tax year following the one in which the employee starts the new job. For example, an employee starting a new job on 1 March 2023 will be subject to a time limit of 5 April 2024. The types of expenses that are allowable (as prescribed by HMRC) are described in more detail below:
| Costs |
Allowable |
Not allowable |
| Cost of disposing of existing home |
- Legal/estate agent fees
- Advertising
- Disconnecting gas, water etc.
|
- Cost of re-directing mail
- Cleaning costs
|
| Travel and subsistence |
- Mileage (from old home to new home/work location)
- Second class rail fare only (from old home to new home/work location)
- Immediate family visits to new location - maximum 2 visits
- Commuting costs to old home (or point of exit from the UK) from hotel/bed and breakfast accommodation within the UK for 2 months
- Temporary rented accommodation for a maximum of 6 months in permitted circumstances. See HMRC guidance.
|
- Costs of food and drink (expect breakfast where Bed & Breakfast is booked)
- Daily travel costs to University
- Bonds required for rent/rent deposits
- Rent payments once the employee has no property commitments at the previous location
|
| Cost of acquiring new home |
- Legal fees and services
- Loan arrangement costs
- Surveys and valuations
- Land Registry fees
- Relocation management administration fees
- Connecting gas, water etc.
|
- Stamp duty
- Utility bills
- Council tax
|
| Replacement of domestic goods which cannot be relocated from the previous property |
- Carpets, curtains etc. if old ones are unsuitable for new house (in excess of funds received from selling of unsuitable goods)
- White domestic goods if previously fitted
|
- Items for second homes
- Decorating materials
- Gardening materials
- Kitchen equipment e.g. toaster, kettle etc.
- Linen/bedding items
- Furniture
|
| Cost of moving possessions |
- Packing and unpacking
- Temporary storage
- Transportation costs
- Insurance in transit
|
|
Relocation amount
Actual expenses incurred in relocating from within the UK or from overseas will be reimbursed at the equivalent of 10% of your annual gross salary at the time of taking up your appointment at the University (applicable to new joiners from 1 May 2023), up to a maximum of £8,000 (which is the limit of non-taxable claims as prescribed by HMRC). If a claim is agreed in excess of £8,000, this will be subject to normal taxation rules for the amount above £8,000. In exceptional circumstances, University Executive Board (UEB) may agree an increased amount.
International Relocation
The University may be able to arrange for staff to stay in accommodation upon joining the University, to allow time to find accommodation in the UK. Due to the nature of the accommodation available, this can only be offered to the staff member in the first instance. For further details, please contact the Recruitment Team
Visa Expenses
For those relocating from outside the UK, the costs of obtaining a visa for themselves and family are not covered by the relocation assistance scheme as they are classed as a taxable expense under HMRC rules. Therefore, the University operates a separate Visa Loan Scheme which may be applied for in such instances (link to be added once live). New members of staff can visa both a visa loan and relocation assistance if agreed.
Procedure
Approval must be gained from the PVC/Dean or Director during the recruitment/ onboarding process. Retrospective requests will not ordinarily be approved but may be considered.
Claims Process
Relocation assistance claims can only be made once the employee has commenced work. Claims for reimbursement of actual relocation expenses incurred must be made on the appropriate form, available on the University intranet where further guidance on completing the form is also available. Claims should be submitted to the Payroll Team for payment as per the guidance available. Claims cannot be made in advance of the date on which the appointment is taken up, and no advances will be made.
Leaving the University
In view of the significant costs involved in providing relocation assistance any member of staff who resigns from their post within the first three years of commencing their appointment will be required to repay a percentage of the money that they have received, according to the following scale:
- Resignation during first year: 100%
- Resignation within second year: 75%
- Resignation within third year: 25%
The sum must be repaid to the University no later than the final day of employment and will be deducted from their final salary payment. (Should this be insufficient to cover the outstanding debt the individual will reimburse the University immediately by some other means acceptable to the University).