Relocation

If you need to relocate because of your employment with Essex County Council you may be entitled to help with the cost of relocation.

The maximum level of relocation assistance provided by the council is £8,000 inclusive of VAT. This is not a lump sum payment but a reimbursement for eligible expenditure subject to valid claim forms, receipts and invoices. 

Read the relocation policy (PDF, 156KB).

Eligibility

Relocation assistance will normally be agreed at the recruitment stage to help attract the best candidates in positions that are difficult to fill.

To be eligible for relocation expenses, you:

• must be relocating as a result of your employment with the council
• are expected to have a permanent employment contract or a fixed term contract lasting 3 years or more
• must be currently living more than 90 minutes from your new work location
• must be moving to a location within a normal commuting time of less than an hour

All claims must be made within the first 12 months of taking up that employment.

If your employment terminates within three years of the date of payment of the first expenses claim you may need to repay some, or all, of the amount given by the council. This does not include employments ending due to redundancy, ill health, or disability.

Claiming relocation expenses

Prior to commencing any claim for relocation expenses, you must complete a relocation declaration form (DOCX, 106KB).

Your line manager and budget holder will make sure that the funding is available from within staffing budgets and spend approved. They will be responsible for managing the costs fairly and consistently, up to a maximum of £8,000 in line with the policy.

All expense claims for relocation, must be supported by valid receipts and a copy of the Relocation Declaration Form and submitted in accordance with the our travel and expenses policy (PDF, 283KB)

Costs that may be reclaimed

As the relocation is job related, up to £8,000 is exempt from tax provided that certain conditions are met, including that the new property is the employee's main residence. 

The property bought must be owned or leased, or jointly owned or leased by the employee. 

Within the maximum limit of relocation available, the council will reimburse the following costs reasonably incurred by the employee if they intend to sell their existing property, buy or permanently rent a new property, as their main residence in order to relocate.

Selling an existing main residence

If you are selling an existing main residence, you may be entitled to the cost of:

• the estate agency, auctioneer and advertising fees associated with selling the existing property
• the legal and conveyancing fees associated with selling the existing property
• a contribution towards any early repayment charge for a mortgage in relation to the existing property

The interest on any bridging loan whilst the existing property is being sold may be claimed for a maximum period of 26 weeks or until the total relocation allowance has been exhausted, whichever occurs soonest. If the employee is renting out their old property before or whilst trying to sell it, any rent received on the old property must be offset against their interest claim for any bridging loan.

Buying a new main residence

If you are buying a new main residence and are selling or have sold your previous residence, you may be entitled to:

• the legal and conveyancing fees (including survey, Land Registry, search and mortgage arrangement fees) associated with the purchase of a new property
• the stamp duty incurred in connection with the purchase of a new property

This does not apply if you are currently living in rented accommodation.

Renting a new permanent residence

If you are renting a new permanent residence, you may be entitled to:

• the deposit payable to the landlord for a new rented property. The deposit must be reimbursed to the council within three months of moving to the new rented property
• any associated administration costs from the letting agents of your existing or new rented property This includes check-out fees, penalty clauses and lease arrangements fees

Any overlap in rental payments in moving from one rental property to another, where the property is left empty, may be claimed for a maximum period of 26 weeks or until the total relocation allowance has been exhausted, whichever occurs soonest. 

If the employee is renting out their old property, any rent received on the old property must be offset against their claim for overlapping rental payments.

Renting before buying a new permanent residence

If you move to your new work location and rent a property before buying a new permanent residence you may be entitled to the same costs as renting or buying a new residence. 

The maximum relocation allowance of £8,000 (including VAT) applies.

Moving costs

You may be entitled to the following costs associated with moving:

• any charges for disconnection of public utilities, such as gas, water, electric
• any charges for disconnection of white goods, such as washing machines, serving your existing property
• any charges for connection of public utilities or white goods serving the new property
• the cost of moving furniture, domestic goods and personal possessions from your existing property to the new property, including insurance taken out to cover goods in transit
• the cost of temporary storage and insurance of furniture, domestic goods and personal possessions if not moving directly from the existing property to the new property. This only covers storage and insurance for a maximum of six months
• a contribution towards the cost of furnishings, for example carpets and curtains required for the new property (up to a maximum of £2,000 including VAT). This does not apply to movable furniture and equipment
• a contribution towards replacement white domestic goods such as washing machines, if these goods were integrated in the old property and are not suitable for transfer to the new property

Temporary accommodation

If you are staying in temporary accommodation, for example a hotel, bed and breakfast or short-term let you can claim for the cost (for a maximum of 26 weeks) if:

• the temporary accommodation is less than one hour commute to your work base
• maintaining a mortgage or rental agreement for their old location and the move to their new permanent residence is delayed

If the employee is renting out their old property before or whilst trying to sell it or until the expiry of any lease termination period, any rent received must be deducted from the temporary accommodation costs.

Travel expenses

If you are travelling to find a new residence you may be entitled to travel and overnight accommodation costs for up to:

• three visits to the new area
• a maximum of £300 including VAT

If you are travelling to your new work location from your current property before relocating, you may be entitled to:

• public transports costs
• mileage costs

Mileage will be paid at the HMRC approved rate, or where appropriate the Car Provision Scheme (CPS)

Additional allowance for relocation from overseas

If you are relocating from overseas, you may be entitled to:

• economy one-way airfares to the UK for you and your immediate family
• immigration visa fees for you and/or your dependants. Costs for subsequent visa extensions will not be reimbursed
• associated visa costs, such as translation services or police registration fees
• initial NHS surcharge for you and your dependants for the first year only. Costs for subsequent charges will not be reimbursed

Costs that cannot be reimbursed

The following costs cannot be reimbursed:

• contribution towards the purchase of the new property, even if the £8,000 maximum has not been exceeded
• compensation for any losses, for example, if your existing home is sold for less than market value
• utility bills
• Council Tax due, including any period that your residence may be empty
• professional cleaning costs incurred due to vacating or occupying any property
• cost of redirecting mail
• any decorating, gardening or property improvement costs
• any movable items, such as toasters, kettles, furniture, linen/bedding and entertainment equipment
• any items to be used in a second home, not in the employee’s main residence
• food and drink costs whilst travelling (except in relation to Bed & Breakfast costs as part of overnight accommodation
• travel costs from temporary accommodation or a new permanent location to the new work location
• costs incurred for visa extensions/switching/re-applications to work in the UK
• NHS surcharge costs in relation to visa extensions/switching/re-applications to work in the UK

Employees who are not intending to move their main residence

If you intend to rent accommodation in the new work location but not as their main residence, the council will reimburse appropriate costs. However, payments made in this circumstance are taxable at the appropriate rate.

The council will not make any contribution if you intend to buy a property in their new work location as a second home and which will not be their main residence.

Joint eligibility

Where there is a joint purchaser or lessee who is also eligible for any reimbursement, either under this policy or via one operated by another employer, you must declare this and then an apportionment of claims will be made.

Replaying relocation costs if you leave the council

The amount repayable starts to reduce after 12 months’ employment following the first claim. The amount you need to replay will be based on how long you have been employed since your relocation.  

Period of service (from date of first claim)	Amount to be repaid (as % of total)
Leaving within 12 months	100%
Leaving between 12 and 24 months	75%
Leaving between 24 and 36 months	50%
Leaving after 36 months	0%