NHS Relocation Expenses: What Trusts Pay and How It Is Taxed

Many NHS trusts offer help with relocation costs, particularly for hard-to-fill posts, senior roles and staff moving from abroad. Packages are set locally rather than nationally, so the amount and conditions vary a lot. This guide explains what is usually included and how the tax rules work.

What NHS relocation packages often cover

Each trust has its own relocation policy. Typical items include:

• removal costs for your belongings
• legal and estate agent fees for selling and buying a home
• stamp duty in some cases
• temporary accommodation while you find a home
• travel for house-hunting visits
• excess travel costs for a period while you commute from your old home
• costs of new school uniforms, or connecting utilities

Most policies set an overall maximum. Packages are discretionary, so you need to agree the details before accepting the job.

The £8,000 tax-free limit

HMRC allows employers to pay or reimburse qualifying removal expenses and benefits up to £8,000 tax free for each move. To qualify:

• the move must be because of a new job, or a change in where you work for the same employer
• your old home must not be within reasonable daily travelling distance of the new workplace, and the new home must be
• the expenses must be qualifying costs, such as removals, legal fees and temporary living costs
• the costs must normally be incurred by the end of the tax year after the one in which your new job starts

Anything above £8,000, or any payment for non-qualifying costs, is taxed as pay. Some trusts pay the extra through payroll, so it is taxed in the normal way.

Stamp duty and buying a home

Stamp duty is a qualifying cost for tax relief purposes, but some trusts do not include it in their package. If you are buying, our mortgage calculator estimates monthly payments and stamp duty.

Repayment clauses

Most relocation agreements require you to repay some or all of the money if you leave within a set period, often one or two years. Before you sign, check:

1. how long the repayment period is
2. whether the amount reduces over time
3. what happens if you leave for reasons outside your control, such as ill health

International relocation

Staff moving from abroad often have packages covering flights, visa fees and temporary accommodation. Our guide for internationally educated nurses explains common features and what to check.

Moving for training rotations

Resident doctors and some trainees move between trusts as part of training. Relocation and excess travel rules for training rotations are set separately and are often more specific. Check with the employing organisation or lead employer.

Excess travel instead of moving

If you change workplace for the same NHS employer and do not move house, some trusts pay excess travel costs for a set period. These payments can be taxable unless they meet HMRC's rules for temporary workplaces. Payroll usually handles the tax treatment.

Common questions

Do all NHS jobs offer relocation? No. It depends on the trust's policy and the role.

Is relocation money paid upfront? Usually costs are reimbursed after you claim with receipts, though some trusts pay suppliers directly.

Does relocation count as pay for my pension? No. Relocation expenses are not pensionable.

A worked example

Suppose a trust agrees to reimburse £10,000 of qualifying removal costs for a new Band 7 post:

• the first £8,000 is tax free
• the remaining £2,000 is taxable

For a basic rate taxpayer, tax on the £2,000 would be £400. Excess qualifying removal payments do not normally carry employee National Insurance, although the employer may pay employer contributions on them. Your trust's payroll or expenses team will explain how the taxable part is reported, usually through payroll or a benefits form after the end of the tax year.

Keep receipts for everything you claim. Missing evidence is the most common reason relocation claims are delayed.

See your new take-home

Use the take-home pay calculator to see your monthly pay in your new role, and the London weighting calculator if you are moving to or from London.