Hi my partner was staying with me a two days a week when in work digs. Owing to the high need for contractors in the area by his firm he was asked if he would consider renting with me, moving out of digs as a favor to them. They offered to pay ££ a month towards the rent if he did so to allow other contractors to move to the area. After some consideration we agreed to do this on the basis he would receive ££ towards the rent. They stipulated that the contract had to be in his name. I was unable to add him to my tenancy and the current property was really to small for an additional permanent resident so we jointly found alternative property and have rented it in his name with the understanding they would be contributing towards the rent. Until this time I was living on my own and in receipt of benefits which have now stopped as a result of me living with a partner, this amount was similar to what his employers offered and we calculated our expenses of no benefits to me but expenses to him.
He was in digs because his home was over 2 hrs and 79 miles and was required to work in this location. Therefore they offered this as a relocation.
Consequently he has received the first payment which has been made subject to tax and NI. This has meant the contribution is significantly less and has pushed up his overall tax payment, we are therefore now financially disadvantaged because he did something to help the company - we had not at this point decided if cohabiting was something we were intending on.
I have looked at www.gov.uk and it states that if"
an existing employee is changing their place of work within your organisation (was formally based in his home area now changed as part of this.)
the employee’s new home is reasonably close to the workplace and their old home is not" it can count as a qualifying cost and be exempt from tax and NI"
The accommodation rented is temporary for 1 year owing to the current market and therefore i am asking;
should my partner have been financially disadvantaged by a relocation requested by the company in such away, outlined as "to help them" without including the fact the payment would be taxable, and can the the payments be made as qualifying costs? Is there a way around this?
This has a lot of implications for us as it will impact on my ability to help with my sons university costs as well all the other rising costs at the moment because its going to cost us more than planned but we feel somewhat stuck now.
Many thanks and sorry its so long!