24 months + Contract renewal

[KD1]

Hi,

I did some research on the other posts but could not find an exact answer to my queries so any help would be really appreciated.

I have been contracting with a client using my limited company for 20 months now. My current contract expires in July (leading to 24 months). There is a possibility that the client will renew for another year which I would want to instead of going for another contract at this point.

I checked with my accountants and was told that it is not IR35 compliant to work at the same client for more than 24 months but the posts here seem to suggest that the only difference is in the claims for travel expenses to the client site. So a bit confused whether it is an IR35 issue or a expense claim issue?

Also, a few more quick queries:
- My role in the new contract could be slightly different - additional management responsibilities than before so does that have any bearing on whether the new contract is IR35?
- As part of my work I travel to different end customer locations for different projects - would those still be claimable? For e.g. taxi from home to a london office (my contract is for a location in Watford).
- Can I still claim other expenses such as office eqiupment, journals etc?

Thanks a ton for any advise - am slightly unsure whether to move to permanent roles or to an umbreall company because of this 24 month issue.

Regards,
KD1

[SussexSeagull]

I believe you can't claim expenses once you realise the contract is going over two years, e.g. after 22 months you get a 3 month renewal.

[kingcook]

I have been contracting with a client using my limited company for 20 months now. My current contract expires in July (leading to 24 months). There is a possibility that the client will renew for another year which I would want to instead of going for another contract at this point.

If the expiration of your current contract will take you to 24 months or more, then the 24 month rule will apply from the beginning of the current contract (because when the current contract began, you'd be expecting to work at the same client site for 24+ months)

I checked with my accountants and was told that it is not IR35 compliant to work at the same client for more than 24 months but the posts here seem to suggest that the only difference is in the claims for travel expenses to the client site. So a bit confused whether it is an IR35 issue or a expense claim issue?

Your accountant is talking out of their arse.

[Greg@CapitalCity]

My role in the new contract could be slightly different - additional management responsibilities than before so does that have any bearing on whether the new contract is IR35?

Not really. As kingcook says, there is no 24-month rule in relation to IR35. The IR35 status for each contract is looked at on its own merits - with the usual (a) written contract, (2) actual working conditions, being the main things to look at when considering your IR35 status.

As part of my work I travel to different end customer locations for different projects - would those still be claimable? For e.g. taxi from home to a london office (my contract is for a location in Watford).

You can claim for travel from home to a temporary workplace (which must be stopped once you know you will be travelling to that workplace for more than 24 months), and you can also claim for travel between permanent workplaces. This is regardless of the address specified on the contract. So if you have been working in London for 22 months, and then get a new contract to continue to travel into London, then travel ceases to be claimable. If you travel one day a week to Watford, well that remains a temporary workplace, so travel from home to Watford can be claimed. And if there are too many potential scenarios around this for you to consider, I think speak to your accountant

Can I still claim other expenses such as office eqiupment, journals etc?

You mean if you are caught by IR35? Do a Google search for "claimable expenses ir35" - the expenses you can claim change if your contract is caught by IR35.

[Sockpuppet]

My role in the new contract could be slightly different - additional management responsibilities than before so does that have any bearing on whether the new contract is IR35?

I'd be concerned that all of what you have done is within IR35 with a statement like that.

[JamJarST]

I believe you can't claim expenses once you realise the contract is going over two years, e.g. after 22 months you get a 3 month renewal.

You can't claim expenses related to travelling to and/or staying in the same location/area after 24 months, it is actually quite complicated and to paraphrase NLUK "look at the guides, do a search".

[KD1]

Thanks everyone. My current contract is deemed to be IR35 compliant by my accountants so am hoping that the extension beyond 24 months does not change anything on that front.

So to summarise based on responses so far:

1. No bearing on IR35 simply by virtue of time spent on a contract
2. Cannot claim travel expenses to the main work address on the contract as soon as I know that the total time spent at the site using my limited company is going to be over 24 months.
3. No bearing of 24 month + on other expenses claimable (assuming inside IR35) on things such as accounting fees, insurance, journals, equipment etc.

Thanks for your help - I will pass these by my accountant once more - they are the largest in the UK for contractors so ideally should be knowing the IR35 rule!!

[northernladuk]

Thanks everyone. My current contract is deemed to be IR35 compliant by my accountants so am hoping that the extension beyond 24 months does not change anything on that front.

Have you read anything we have said???

So to summarise based on responses so far:

1. No bearing on IR35 simply by virtue of time spent on a contract
2. Cannot claim travel expenses to the main work address on the contract as soon as I know that the total time spent at the site using my limited company is going to be over 24 months.
3. No bearing of 24 month + on other expenses claimable (assuming inside IR35) on things such as accounting fees, insurance, journals, equipment etc.

Thanks for your help - I will pass these by my accountant once more - they are the largest in the UK for contractors so ideally should be knowing the IR35 rule!!

Summarise on above response..

1. OP still has no idea about the difference between being inside and outside IR35 and nobody else but him has mentioned IR35 'compliance'
2. OP still needs to go read the guides.

[kingcook]

Thanks everyone. My current contract is deemed to be IR35 compliant by my accountants so am hoping that the extension beyond 24 months does not change anything on that front.

<snip>

Thanks for your help - I will pass these by my accountant once more - they are the largest in the UK for contractors so ideally should be knowing the IR35 rule!!

Seriously... do NOT trust your accountant to give you advice on whether your contract is IR35 friendly or not (god only knows why you are doing this anyway, considering that they original said your contract was not IR35 friendly because it took you over 24 months).

Get your contract checked (if renewed) by Qdos or someone similar. You also need to ensure that your actual working practices reflect what is in the contract. Read the guides too (right hand side).

[LisaContractorUmbrella]

Hi,

I did some research on the other posts but could not find an exact answer to my queries so any help would be really appreciated.

I have been contracting with a client using my limited company for 20 months now. My current contract expires in July (leading to 24 months). There is a possibility that the client will renew for another year which I would want to instead of going for another contract at this point.

I checked with my accountants and was told that it is not IR35 compliant to work at the same client for more than 24 months but the posts here seem to suggest that the only difference is in the claims for travel expenses to the client site. So a bit confused whether it is an IR35 issue or a expense claim issue?

Also, a few more quick queries:
- My role in the new contract could be slightly different - additional management responsibilities than before so does that have any bearing on whether the new contract is IR35?
- As part of my work I travel to different end customer locations for different projects - would those still be claimable? For e.g. taxi from home to a london office (my contract is for a location in Watford).
- Can I still claim other expenses such as office eqiupment, journals etc?

Thanks a ton for any advise - am slightly unsure whether to move to permanent roles or to an umbreall company because of this 24 month issue.

Regards,
KD1

1. What is your current role exactly?
2. How much of your time do you spend at other sites v. the main sites as this can have a bearing on the 24 month rule?
3. Yes you can claim for other expenses - the 24 month rule applies only to travel and accommodation.