http://www.hmrc.gov.uk/sa/need-tax-return.htm#1

Do you need to complete a tax return?

...

Income from overseas

You must complete a tax return if you have any foreign income that's liable to UK tax.

...

You have Income Tax to pay

For example, if the amount can't be collected through your tax code or by a voluntary payment, HMRC may ask you to complete a tax return.

Just because you don't usually file a tax return does not mean you don't have to declare taxable income.

It is not something I have come across but I would think that as the payment is taxable a subsequent repayment would be deductile.

Thanks for that.

I wonder if they can find out, if you just recieve a couple of cheques and put them in your UK bank account.

I could be in a similar situation soon. It seems like the most tax efficient way of doing this may be to get a 0% interest credit card to fund our relatively small moving costs and then once in Canada, reclaim them against business policy (as long as its agreed in writing before incuring the expenses!) - bit risky though. Or maybe its better to get the relocation companies to invoice my new employer directly?

Thank you

I'll tell you next time I get a relocation package..

We'll be in a similar situation soon.
Does this apply to you:
http://www.hmrc.gov.uk/guidance/relocation.htm

The reason i ask is, i know somebody who got a cheque for relocation and didn't pay tax on it.........although didn't declare it either.

Possibly not unless they choose to audit you. However, findoutability is not reliable as a determining factor of whether or not income is taxable.