Relocation Expenses Guide 2021

In this article we highlight how you can expense relocation expenses when relocating to take up a contract whether within Ireland or from abroad. The main requirement is that you need to have moved your primary place of residence to take up a new position

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In this article we highlight how you can expense relocation expenses when relocating to take up a contract whether within Ireland or from abroad. The main requirement is that you need to have moved your primary place of residence to take up a new position

 

Relocating within Ireland 

If you are required to relocate for the purpose of your contract work by a distance of 100km or more, you would be entitled to claim relocation expenses. 

As part of the relocation expenses, you can claim for the first 3 months of rent. Please note that mortgage repayments cannot be claimed.  Should you be looking for accommodation you can claim the first 10 nights at a subsistence rate of €147 per night

In the event of renting or leasing an apartment/room, a copy of the lease agreement with the landlord’s name/ PPS number must be provided with formal proof of payment each month. 

Proof of address for your current address and your new address will also be requested. 

Also, as you are relocating within Ireland, the vouched diesel/petrol costs can also be claimed as a business expense for the initial trip to the place of relocation. Valid receipts must be provided in this case. 

 

Relocating from Abroad 

As you will relocate to Ireland for this contract, there are certain relocation expenses you may be able to claim under the Director Umbrella and Limited Company options.  

You will be entitled to receive tax relief on your initial travel costs to Ireland (and if you have a spouse and children who will relocate, we can process their flight as well).  

The first 3 months accommodation will also be included in the relocation expenses. You can receive tax relief on a subsistence rate of €147 per night for the first 10 nights, and you will receive tax relief on your accommodation for the remaining 2 months and 20/21 days. 

Receipts are not required for the first 10 nights but after night 10 we will require either a copy of your lease agreement if renting or receipts if you are in a hotel/B&B. 

We will need proof of address for your current address and your new address in Ireland when you have it. 

 

FAQ

What business expenses can I claim when relocating for a Contract?

For contractors who have not sourced accommodation, a subsistence rate of €147 per night may be claimed for the first 10 nights of relocation. To claim subsistence for the first 10 nights, you must complete a subsistence form

Can I claim a mix of subsistence, hotels and/or rent?

Yes, your total relocation claim is up to a period of 3 month. If a rent or lease agreement is already in place prior to relocation, Contractors cannot claim the subsistence rate.

What if my family are relocating with me?

If you are married or in a civil partnership, and your family is relocating at the same time, tax relief may also be claimed on their travel costs.

 Please ensure you have valid receipts for their travel and accommodation costs.

What if my landlord will not provide me with their PPS Number?

To claim tax relief on accommodation expenses, it is advisable to provide the Landlord’s PPS Number or a lease with all the landlord’s details on it.  If it is not possible to provide the landlord PPS number, and you have no lease please speak directly with your Payroll Account Manager in Icon Accounting.

What distance is deemed acceptable for relocation?

Approximately of 100km - Changes in living accommodation due to personal reasons is not deemed allowable.

Can I claim mortgage repayments if I buy a property?

No, it is not possible to claim mortgage repayments

Are returning journeys deemed as allowable business expenses under relocation?

No, returning journey are not deemed allowable.

For more information you can view our video (insert link)

 

If you have any other questions, feel free to call us on 01 8077106 or email info@iconaccounting.ie

Author

Gerard Kiernan

Director

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