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Reimbursing Moving Expenses

Reimbursing Moving Expenses

Old Oct 3rd 2018, 8:35 pm
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Default 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
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Old Oct 3rd 2018, 9:43 pm
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Default 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
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Old Oct 3rd 2018, 10:53 pm
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Default 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.
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Old Oct 4th 2018, 9:22 am
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Default 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
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Old Oct 4th 2018, 4:31 pm
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Default Re: Reimbursing Moving Expenses

Originally Posted by biggayowl View Post
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
Unless you own a moving company, the invoices can only come from the suppliers you used to undertake the move, per the CRA list. It does not matter if they are Canadian companies, UK or Mongolian for that matter, so long as they are proper bills of sale. A written note from yourselves is not an invoice and would not be accepted by CRA.
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Old Oct 4th 2018, 8:26 pm
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Default Re: Reimbursing Moving Expenses

So for flights? Get the airline to invoice us? Rental car?
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Old Oct 4th 2018, 9:31 pm
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Default Re: Reimbursing Moving Expenses

Originally Posted by biggayowl View Post
So for flights? Get the airline to invoice us? Rental car?
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.

Last edited by Aviator; Oct 4th 2018 at 9:36 pm.
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Old Oct 5th 2018, 1:44 pm
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Default Re: Reimbursing Moving Expenses

Originally Posted by Aviator View Post
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.
great, thanks. It seems like standard expense reimbursment stuff, just for way more than I'm used to.
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Old Oct 5th 2018, 1:55 pm
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Default Re: Reimbursing Moving Expenses

Originally Posted by biggayowl View Post
great, thanks. It seems like standard expense reimbursement stuff, just for way more than I'm used to.
It's a while ago now (14 years) but I got my flight paid by my then employer when I moved over. I think I paid & then claimed on expenses like regular business travel. Only issue for you in that approach is carrying the costs for the three months until they reimburse you.
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