Relocation - Subsistance allowance

[Muscles Magoo]

Can anybody tell me what are the generally accepted guidelines regarding an employer paying a subsistence allowance to a new employee who is in the process of seeking permanent accommodation in the area? The only guideline I have is that such allowances must be 'reasonable'.

In addition, does there have to be a minimum distance involved in order for an employer to be able to pay relocation expenses without deduction of tax?

 

[c1966]

The Revenue have a good guide on relocation allowances which is available on their website. It talks in general terms and does not set limits (from what I remember) and does not define relocation.

It is important that the relocation allowances are not packaged up as income.

 

[HostBidder]

Link to Revenue guide below;

[broken link removed]

You mention that the employee is looking for accommodation, so it might be worth noting that subsistence does not apply to travel to and from the main place of work.