If you are thinking about relocating to the UK to work within the NHS but are worried about the associated cost a relocation package may be a viable option. Relocation packages are sums of money or reimbursement for expenses offered by some Trusts, both to help you cover the costs of your move and as an incentive for you to join them.

Here is everything you need to know…

Relocation package figures vary from hospital to hospital as each Trust has their own policy on relocation expenses. Please note that not all hospitals or vacancies will offer a relocation package.

If you are eligible for a relocation package, the hospital may give you a lump sum to pay for relocation expenses. More commonly, the hospital will ask for you to keep your receipts and reimburse your exact costs.
In some cases, there may be room for negotiation of relocation expenses. Indigo will do this on your behalf and always try to get the most favourable package to support your relocation.

Relocation expenses reimbursed by the Trust will usually be subject to repayment if you leave within a set time frame (usually 24 months or before the end of a fixed term contract, if shorter than 24 months).
 
Check what’s included in your relocation package:
Before you make travel or accommodation arrangements or apply for your visa – you should check exactly what will be included in your relocation package - all the details of your relocation package will be set out in your offer letter. If your offer letter does not include enough information, Indigo will request the full relocation package policy from the Trust on your behalf.
 
Income Tax on any Relocation Expenses:
Payments for relocation costs will normally only be paid if they are defined by the HMRC as ‘Qualifying relocation benefits and expenses’ and are therefore not subject to tax and National Insurance (up to the value of £8,000).

The employee’s reason for relocation must be one of the following:
  • The employee starting a new job with the Trust
  • A change in their employment duties
  • A change in the place where their employment duties are normally carried out
 
The expenses and benefits must fall into one of the six categories below:
  • The employee’s sale of their old residence
  • Their purchase of a new residence
  • Transporting the employee’s belongings to the new residence
  • Associated travel and subsistence costs
  • Domestic goods for the new premises (this is interpreted by the HMRC as being ‘white goods’)
  • Deposit for temporary rented accommodation while a new residence is found.

It is worth noting that not all of the above categories will be offered by NHS Trusts and there is a time limit. To qualify the expenses must be incurred, or the benefits must be provided, before the end of the tax year after the one in which the employee’s circumstances changed.

The employee’s new residence must be within reasonable daily travelling distance of their new normal place of work, and their old residence must not be within reasonable daily travelling distance of the new normal place of work.

The HMRC website contains further information on the qualifying relocation benefits and expenses. You should do some research on whether you are expected to pay tax and national insurance on your relocation package prior to accepting the offer.
 
Have a question? Get in touch, the Indigo Team are ready to help!
Call: 0330 123 9665
Email: contactus@indigohealthcare.co.uk