How is the 2-year expenses rule for mileage, etc affected by part-time work?

[d000hg]

I've been working 4-days a week for a client since November, this month just dropped to 3-day weeks (all my choice, I negotiated lower availability due to other work). Obviously far off the 2 years now, but I just wondered if it's done pro-rate or calendar?

[malvolio]

There's no hard and fast rule, as usual with HMRC, but generally speaking if you spend less than 40% of your time on the client's site over the last 24 months the rule won't be appllied.

[PAH]

if you spend less than 40% of your time on the client's site over the last 24 months the rule won't be appllied.

So if we only do 8 hour days we're only on site for a third of the day, so the 24 month rule is irrelevant.

[northernladuk]

So if we only do 8 hour days we're only on site for a third of the day, so the 24 month rule is irrelevant.

As Mal says... there is no hard and fast rule. Trying to meet the exact figures quoted isn't going to mean that you are not going to fall foul of this rule. Think about why they brought this rule in. It was seen as a reasonable amount of time for you to work in a particular area before a normal person would re-locate or find other work. If you are being unreasonable in this situation you could be a target if that makes sense.

If you do start off as 40% time and this creeps up over 40% it is going to get very complicated and you may have to even start the clock when you were before 40% just to be absolutely clean.