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Posted Fri, 15 Jul 2022 08:56:48 GMT by Donna Grimmer
I am currently doing bookkeeping for a client who provides a relocation service, they have a client that has employees relocating from abroad to the UK. They have asked my client to pay their employee's relocation expenses directly to the employee on their behalf and then recharge costs to the client. I can not see how this is correct as 1. My client can not show the expenses as a cost to her business, 2. She can not claim any VAT charged on the expenses as the VAT receipts are not in her company name and the expenses are not for her employee, 3. Her client should report the relocation expenses to HMRC and pay TAX and NIC. 4. Could this be classed as money laundering and tax avoidance. I look forward to hearing your thoughts. Thanks, Donna
Posted Mon, 25 Jul 2022 15:30:57 GMT by HMRC Admin 10
Hi
We cannot answer questions relating to Business expenses and VAT.
Some rellocation expenses may be exempt from tax and NIC.
Please see :
Expenses and benefits: relocation costs
for more information on this.
I am unsure of the situation as its not clear in your question.
Can you contact Employers Helpline on 0300 200 3200 to discuss further.
Thankyou.
Regards.

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