We are proposing to make a cash free relocation payment to a new recruit.

The purpose of the payment falls within the criteria set out by HMRC, but I need advice regarding the practicalities of making the payment and any information I might need the employee to submit. Can I make this payment in a lump sum or is it included in the first months salary? Do I need him to retain and submit receipts?

We are wanting to give him £7k (well within the £*k limit for tax free) to fund the cost of transporting his stuff and for initial housing costs close by to the office.

Also, is it usual practice to claw back if the employee leaves the organisation within certain time limits?  

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