Contract nearing 24 months
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    Default Contract nearing 24 months

    Hi Guys,

    Need some advice regarding contract length. I have been in my current contract for 22 months and in process of 3 months extension. This will take me to 24 months+ in this contract. I am contracted through a IT Service provider to work for the end client (i.e the end client has outsourced IT services to the Service Provider). Will going beyond 24 months contract time cause any issues like coming into IR35 net, something similar, etc.

    Any help is greatly appreciated.

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    Contract length has no impact on your IR35 status, as long as you aren't inadvertently slipping into ways akin to employment rather than the current B2B relationship that you (presumably) have.

    When you know that you are going to be there more than 24 months, then you need to consider (and probably stop claiming) your travel and subsistence expenses.
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    Quote Originally Posted by RP27 View Post
    Hi Guys,

    I have been in my current contract for 22 months and in process of 3 months extension.

    Any help is greatly appreciated.
    Take the extension and look for another job.
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    Quote Originally Posted by TheFaQQer View Post
    Contract length has no impact on your IR35 status, as long as you aren't inadvertently slipping into ways akin to employment rather than the current B2B relationship that you (presumably) have.

    When you know that you are going to be there more than 24 months, then you need to consider (and probably stop claiming) your travel and subsistence expenses.
    stop claiming expenses (related to travel and accommodation for the site) immediately. And repay any expenses claimed from the point you got a sniff they might extend you beyond 24 months.

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    Quote Originally Posted by TheFaQQer View Post
    Contract length has no impact on your IR35 status, as long as you aren't inadvertently slipping into ways akin to employment rather than the current B2B relationship that you (presumably) have.

    When you know that you are going to be there more than 24 months, then you need to consider (and probably stop claiming) your travel and subsistence expenses.
    Thanks for the quick response. The relationship is - the end Client's IT infrastructure is being managed by this Service provider (Capita) with whom my contract relationship is.

    Suggestions taken on board... will stop claiming travel and subsistence

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    Quote Originally Posted by RP27 View Post
    Suggestions taken on board... will stop claiming travel and subsistence
    Another suggestion would be to do some more research in to the way you work and the legislation surrounding it. Thinking 24 months and IR35 are related is a pretty fundamental mistake. A better understanding of IR35 and what it covers should have made it clear these aren't related.

    That level of knowledge and 2 years in to a gig through Capita I'd bet you you've got more IR35 problems than whether 24 months affects it.

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    Quote Originally Posted by Lance View Post
    And repay any expenses claimed from the point you got a sniff they might extend you beyond 24 months.
    Citation needed.

    You need to stop claiming once you know you will go over 24 months. As far as I'm concerned you do not know that this will happen for certain until you've signed the extension - until then anything can happen, even if the client is making noises about a possible extension, you could still be binned.

    Definitely stop claiming once you've signed the extension but until then you're fine IMO.

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    Quote Originally Posted by TheCyclingProgrammer View Post
    Citation needed.

    You need to stop claiming once you know you will go over 24 months. As far as I'm concerned you do not know that this will happen for certain until you've signed the extension - until then anything can happen, even if the client is making noises about a possible extension, you could still be binned.

    Definitely stop claiming once you've signed the extension but until then you're fine IMO.
    The actual gov.uk pages use the term 'expect to' throught the whole blurb which doesn't really help. Is that when you know it's a long project and you 3 renewals in you know you are there for a long time, when the client manager says you'll be staying or when the paperwork arrives. Who knows.
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    Quote Originally Posted by TheCyclingProgrammer View Post
    Citation needed.

    You need to stop claiming once you know you will go over 24 months. As far as I'm concerned you do not know that this will happen for certain until you've signed the extension - until then anything can happen, even if the client is making noises about a possible extension, you could still be binned.

    Definitely stop claiming once you've signed the extension but until then you're fine IMO.
    Actually the phrase is "a reasonable expectation" of extending over 24 months. So the earlier advice is correct. If it turns out your expectation is misplaced, you can always back claim the expenses you didn't claim at the time.
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    Quote Originally Posted by malvolio View Post
    Actually the phrase is "a reasonable expectation" of extending over 24 months. So the earlier advice is correct. If it turns out your expectation is misplaced, you can always back claim the expenses you didn't claim at the time.
    Quote Originally Posted by Lance View Post
    And repay any expenses claimed from the point you got a sniff they might extend you beyond 24 months.
    The earlier advice is only correct if "reasonable expectation" == "you got a sniff they might extend you". I'd say "reasonable expectation" sets a rather higher bar than that.

    Chances of HMRC challenging, if he quits claiming at 22 months, are virtually nil. How are they going to prove he had a "reasonable expectation" before then? This is not intended to catch whether or not your crystal ball tells you something.

    Even if OP agrees to extend, he still doesn't know he'll be there 24 months. The project could be cancelled tomorrow, or he could hit on the managing director's wife and get marched off site, never to return. But once he signs a new contract, he has a reasonable expectation he'll be there. That's the point at which reasonable expectation can be proven.

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