Relocation FAQs

Your removal allowance is a fixed sum - £2,000 for individuals relocating within the UK and £3,500 for those relocating from overseas. This covers travel and moving personal belongings.

If your removal costs are less than your removal allowance, the remainder cannot be used for other relocation purposes. 

If you removal costs exceed your removal allowance, you may offset your additional removal costs against any unused relocation allowance, up to the maximum of your relocation allowance.

Example 1. 

• Salary is £40,000 and relocation allowance is £4,000
• Relocation costs are £5,000, which is £1,000 more than the relocation allowance. 
• Removal allowance is £2,000 and removal costs are £1,500, leaving £500 available. 
• In this case the additional relocation costs cannot be offset against the removal allowance and this must be used for removal purposes only. 

Example 2.

• Salary is £40,000 and relocation allowance is £4,000.
• Relocation costs are £3,500, leaving £500 available.
• Removal costs are £2,600 which is £600 more than the removal allowance. 
• £500 additional removal costs may be claimed from the £500 remaining in the relocation allowance. The final £100 cannot be reimbursed.

Any variation to this provision will be at the discretion of the HR Director

The tax and national insurance arrangements are the same for removal and relocation. 

If your claim for removal and relocation costs is made and paid before the end of the tax year (year ending 5th April) following the year in which you commenced your role, the first £8,000 of your combined removal and relocation allowance may be paid without deduction for tax and national insurance. There are some exceptions to this arrangement (see FAQs 4 and 5). Any allowance paid over this threshold or after this timeframe will be treated as income and subject to deductions for tax and national insurance at the appropriate rate. 

If you become eligible for a removal and relocation allowance due to the extension of your fixed term contract or because of a change of location for your role, any payments made after the end of the tax year (5th April) following the year in which your employment began, will be treated as income and subject to deductions for tax and national insurance. 

Expenses and benefits: relocation costs: What you do not have to report - GOV.UK

We may pay the cost of your temporary rental accommodation for up to 2 months if you meet the following criteria:

• The costs can be covered by your relocation allowance, and
• You are actively looking to purchase or acquire a longer-term rental property in the Loughborough area (or London area if based at our London campus or your new role is split across both sites)

If you are not actively seeking to purchase or rent, please contact your HR team to check whether we will pay for your rental accommodation. If we do, the payment may be subject to deductions for tax and national insurance.

Your relocation allowance is intended to help with the additional costs that you incur due to relocation.

If you purchase a house close to work but your main home is elsewhere, for example you return to your family home at weekends, under HMRC rules, all of your relocation payments may be subject to deductions for tax and national insurance. 

Yes, you will both be eligible for reimbursement of relocation costs in accordance with the University's procedure. However, you cannot claim for the same expenses twice. You may therefore decide to split your costs 50/50 or divide the costs between your claims. 

You should make it clear in your claim whether you're claiming a full or part cost, as should your partner.

You may use your relocation allowance to pay towards dependent's visa costs and NHS surcharge fees, however these costs will be taxable.

You can claim reasonable costs for larger essential items that are not provided in your accommodation or are not fit for purpose. This may include larger items of furniture such as wardrobes and beds, and soft furnishings such as sofas, carpets and curtains as well as substantial electrical goods such as a fridge or washing machine. Items such as televisions and computers are not considered to be essential for the purpose of the scheme. Smaller items such as kettles and toasters are not covered by the scheme. 

You can, although we ask that value for money is uppermost in your mind when making your selection. 

We will pay the cost against the removal allowance, however, if you have not used all of your relocation allowance, you may offset your additional removal costs against your unused relocation allowance.

You can make a claim each time you incur relocation costs, provided that these meet the criteria for repayment set out in the Relocation Expenses Reimbursement Scheme.

You should pay the costs yourself and then make the claim to the University. You don't need to wait until your relocation is completed to make a claim. You can make more than one claim, this way you can claim for costs as they arise.

Once your claim has been processed it will be paid with your salary. The cut-off for salary payments is early in the month so you might send the claim in one month and receive the payment in the next. We will write to you to let you know when your claim will be paid, how much you will be paid and whether this will be subject to deductions for tax and national insurance. 

You must move from outside a 30 mile radius to take up a new appointment at the Loughborough campus or 20 miles for the Loughborough University London campus. Whilst we don't specify how close you need to move to either University, the Relocation Expenses Procedure is aimed at supporting staff to locate closer to their place of work thus reducing the travel distance between your home and your place of work.