Mileage expense whilst on VAT FRS

[northernladuk]

Have you always contracted so close to home?

P. S. With my pedant hat on you aren't travelling to work. Work is your home office. You are travelling on business to your client which is why you can claim. Silly point but if you get your head round the concept other things will be clearer.

[yasnas]

Have you always contracted so close to home?

P. S. With my pedant hat on you aren't travelling to work. Work is your home office. You are travelling on business to your client which is why you can claim. Silly point but if you get your head round the concept other things will be clearer.

ah yes that is how i've understood it and erm well I've only been contracting a week!

[northernladuk]

Yeah but where did you work as a permie. I believe the 24 month rule is about time and location regardless of your employment /Ltd set up.

If you old employer is in the same geographical area you are caught already and can't claim.

[Louisa@AardvarkAccounting]

Yeah but where did you work as a permie. I believe the 24 month rule is about time and location regardless of your employment /Ltd set up.

If you old employer is in the same geographical area you are caught already and can't claim.

Some would say otherwise... The 24 month rule is based per employment and therefore resets each time.

Switching from brolly to Ltd would also be classed as a new employment and the clock resets.

I've always wondered if that's why some contractors open and close a company every 2 years

[northernladuk]

Some would say otherwise... The 24 month rule is based per employment and therefore resets each time.

Switching from brolly to Ltd would also be classed as a new employment and the clock resets.

I've always wondered if that's why some contractors open and close a company every 2 years

Hmm. The some saying otherwise is probably the problem. I found a link saying it made no difference ages ago but can't find it. This

Problem is I found one on accounting web that did say new employer is new 24 months.

[SueEllen]

Some would say otherwise... The 24 month rule is based per employment and therefore resets each time.

Switching from brolly to Ltd would also be classed as a new employment and the clock resets.

I've always wondered if that's why some contractors open and close a company every 2 years

We looked at the HMRC examples that use the square mile as one of their explanations.

[northernladuk]

Having to dig hard but there are a couple of articles like this one that say

Resetting the clock with a change in location

The only way to reset the 24-month clock is to make a significant change to the location and/or the journey needs to occur. Changing clients makes no difference. Changing agencies makes no difference. Moving from permanent to contractor makes no difference. There must be a significant change in the overall journey to re-set the clock.

http://www.broomeaffinity.com/blog/t...24-month-rule/

[Louisa@AardvarkAccounting]

Just blowing off the dust from my legislation books

In the chapter on deductions for employee's expenses, it always refers to 'the employment'.

And the legislation unfortunately doesn't include any detail about switching from umbrella to Limited. However if you were to look at it plainly... A worker would have previously been an employee of the umbrella company and therefore that's one employment. Then if they were to start working through a Ltd company as an employee, that would be a new employer and therefore it restarts.

There doesn't appear to be a definitive answer as to whether this would be seen as an overarching employment.

But whilst you are within the same 'employment' (continuously working through your Ltd), no change of employer, then your journey must have changed substantially for the clock to reset.

[LondonManc]

One to throw out for discussion - does switching between Canary Wharf and the Square Mile count as enough of a change of client location to count?

[northernladuk]

One to throw out for discussion - does switching between Canary Wharf and the Square Mile count as enough of a change of client location to count?

Couple of things here, and we have discussed this at great length many times.. But...

IMO it's not significant enough of a change in journey or cost but that's debatable.

Don't you live in Manchester though?? The journey is from your permanent place of work to your client. The change in London is pretty insignificant to your whole journey.so again I'd say no.