24 month rule and getting extension to run just short of it

[northernladuk]

What a load of tosh. So anyone who starts a BAU rule shouldnt claim because they'll be there more than two years. Heard it all now.

You do know that some companies get BAU people in to cover permies for things like maternity leave, permies seconded to other depts for a few months etc? These sort of gigs they know up front how long they want you.

Fair enough but that would indicated in the reason for you starting to the role so has a defined end date. That would be a temp contract not a BAU one if though the duties are the same. Were any of these reasons given when you started or was the client looking for a permatractor just fill a role?

Also, I do BAU and project work not just BAU.

You mean whatever the client directs you to do?

[psychocandy]

Well you should.. How can...



Not be anything but expecting a renewal which is Mal's point.

Grey area and I will agree asking for a slightly shorter length is a bit dodgy.

BUT, just because local guys ask for me to be renewed means nothing. It goes off as a request only to head office.

[northernladuk]

Grey area and I will agree asking for a slightly shorter length is a bit dodgy.

BUT, just because local guys ask for me to be renewed means nothing. It goes off as a request only to head office.

It's an expectation and a reasonable grounds to believe you will be extended. The head office stuff is just the paperwork.

There has to be the expectation there or else you wouldn't have come up with the plan that they agreed.

[MrMarkyMark]

I think I do in this case I must admit. Not sure I agree with the "expecting a renewal" argument.

You could argue that after a year, you could expect to recieve extensions after this over 24 months. But in reality you cant expect anything.

I've been offered extensions verbally int he past that have then been vetoed by head office and didnt happen.

Sorry in my book, I can't expect to be somewhere until the contract is offered.

You have been offered on this occasion and you know this takes you over 24 months.

Not only that you have stated as such on here

[psychocandy]

Depends on your appetite for risk. This is one of those things that will only come to light if HMRC ever do a thorough investigation into your expenses.

I've had such an investigation years ago (so their approach may have since changed) and IIRC they didn't even want to check the contract terms or start/end/renewal dates as regards the 24 month rule. They just wanted breakdown of the expenses figure for mileage, accommodation, PIE, to make sure it looked legit, then moved onto pension contributions, then got bored after about 6 months of letters to and fro and said I owed them nothing.

Not sure the worry is worth it for a few months of expenses. They are like a dog with a bone if they think you're hiding something, whether you are or not.

Yeh know what you mean. Unofficially asking for a shorter term was about as far as I would go here.

I dont think its worth the risk now I've officially recieved notification from agency of an extension offer past 24 months.

[LondonManc]

Suck it up PC - they've offered the 3 month extension so you now have the expectation that it will go over the 24 months. The only option you've got (and you need to be prepared to walk) is to ask for an extra £25 a day or whatever amount you think you can get away with. Justify it with your experience of clientco. That said, you're also now well into part and parcel so the IR35 flag probably needs a look as well.

[northernladuk]

Makes no odds to the client. Come November they're either going to want me to stay over xmas or not - two weeks isnt going to matter.

Also, as you know, just because the contract says end of november they could get rid of me end octrober if they so desired.

Even if you get canned BEFORE the end of a gig that takes you over 24 months you still CANNOT claim...

Example
Hassan has worked for his employer for 3 years and is sent to perform full-time duties at
a workplace for 28 months. The posting is unexpectedly ended after 18 months. No tax
relief is available for the cost of travel between his home and the workplace, because his
attendance is expected to exceed 24 months (though in fact it does not). The workplace is
therefore a permanent workplace and the journey is ordinary commuting.

Section 3.21 of this document...

Remember the rule is about the workplace being temp or perm which dictates whether you can claim or not. Thinking like that makes this example understandable.

[northernladuk]

At the end of the day.. They OFFERED you 3 month. The expectation is set. No amount of fudging the dates is going to change anything. The rule applies whatever. Claiming would evasion so it's up to you if it's worth the risk.

[Hobosapien]

Only the paperwork matters. That's all HMRC can check during any future investigation. They aren't going to bother contacting the client or hold interrogations under lie detector tests, they'll just ask for the paperwork.

So when an extension goes over 24 months that the point you legitimately can't continue to claim expenses. Simple.

[psychocandy]

You have been offered on this occasion and you know this takes you over 24 months.

Not only that you have stated as such on here

Well yes I have now!!