Reimbursing Moving Expenses
We're moving back to Canada from the UK and the company my partner will be working for has offered to pay for moving expenses. Is there a way (apart from a brown envelope full of cash) for them to pay the expenses to us without us incurring tax on the actual payment?
Whilst their offer is quite generous, it might be less so if paid out as a bonus and then taxed heavily as part of usual payroll. Thanks |
Re: Reimbursing Moving Expenses
EASY = Have all invoices billed to the customer (the company)
That's how we did it - Let them arrange it too |
Re: Reimbursing Moving Expenses
https://www.canada.ca/en/revenue-age...-benefits.html
If you pay the bills and then submit invoices for reimbursement, should not be an issue. If they pay you a lump sum, you pay the bills, can be an issue. If any monies over and above actual moving costs are taxable. Consult an accountant before deciding what is best for your situation. If you receive the payment whilst in the UK, probably won't be taxed by CRA, but HRMC may want a slice of it. The alternative, if they will, is for them to pay the invoices directly. |
Re: Reimbursing Moving Expenses
Thanks for the responses. The agreement is that they will pay expenses (to an agreed amount) after three months of working there. It's in writing in the contract of employment, signed by both parties.
So would seem best to submit invoices for them to reimburse, as we're having to pay up front. Would the invoices need to come from a registered Canadian company or can just be from us personally? Cheers |
Re: Reimbursing Moving Expenses
Originally Posted by biggayowl
(Post 12572611)
Thanks for the responses. The agreement is that they will pay expenses (to an agreed amount) after three months of working there. It's in writing in the contract of employment, signed by both parties.
So would seem best to submit invoices for them to reimburse, as we're having to pay up front. Would the invoices need to come from a registered Canadian company or can just be from us personally? Cheers |
Re: Reimbursing Moving Expenses
So for flights? Get the airline to invoice us? Rental car?
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Re: Reimbursing Moving Expenses
Originally Posted by biggayowl
(Post 12572983)
So for flights? Get the airline to invoice us? Rental car?
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Re: Reimbursing Moving Expenses
Originally Posted by Aviator
(Post 12573015)
You pay the bills and keep the receipts, submit those receipts to the employer for reimbursement. If they are in your name it does not matter.
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Re: Reimbursing Moving Expenses
Originally Posted by biggayowl
(Post 12573309)
great, thanks. It seems like standard expense reimbursement stuff, just for way more than I'm used to.
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