Under current legislation, expenses may be paid free from tax or national insurance deductions providing all of the following conditions are met:

• the total value of the financial assistance provided does not exceed HMRC's maximum tax-free concession of £8,000. Any payments which exceed this limit will be subject to income tax
• relocation is required by the University and is necessary because where the employee currently lives is not commutable on a daily basis
• the employee intends to move to the new area and make this his/her permanent home
• expenditure is necessary, is a direct consequence of relocation and is fully supported by receipts
• expenses are incurred before the end of the tax year following the tax year in which the contract with the University started (where this is not possible any expenses paid will be subject to tax) (the University does not have discretion to extend this period, since it is an HMRC rule)
• the expenses fall within the HMRC definition of "allowable costs"