24 month rule affects hotel?

[jmo21]

What is annoying is the virtual restraint of trade that the 24-month rule brings in. If I've implemented a successful project at one client over the last 20 months, why can't I leverage that knowledge at a local rival of theirs without falling foul of the expenses rule? In effect, you're going from £80ish to £140ish for a £100-a-night hotel.

Look at it more as why should the tax payer continue to help you after a certain point?

[LondonManc]

Look at it more as why should the tax payer continue to help you after a certain point?

What an odd way of thinking of it. If I'm a contractor, why would I move house to be near a contract?

[b r]

The whole problem is thinking like an employee and not a business.

As a business if you can make a profit sending someone 200 miles away, after all costs, then you would. And if that contract extends to 2, 3 or even 10 years you would, but unless you'd some form of long-term guarantee you may not employ someone local to do it. It all depends.

I spent years travelling with businesses, not once did anyone talk of '24 month' rules.

But then these were businesses, and not disguised employment - so become a business.

[jmo21]

What an odd way of thinking of it. If I'm a contractor, why would I move house to be near a contract?

Not in the slightest.

No-one is stopping you, you are simply being extended a tax break for a certain period of time. And it's not my thinking, it's HMRC's :-)

[LondonManc]

The whole problem is thinking like an employee and not a business.

As a business if you can make a profit sending someone 200 miles away, after all costs, then you would. And if that contract extends to 2, 3 or even 10 years you would, but unless you'd some form of long-term guarantee you may not employ someone local to do it. It all depends.

I spent years travelling with businesses, not once did anyone talk of '24 month' rules.

But then these were businesses, and not disguised employment - so become a business.

As jmo said, it's not about not being a business, it's about HMRC. If you're running a business and have two key clients in different towns, you're not going to move house and move your office to be near the other one if you're in the same town as the first.

[LondonManc]

Not completely true. The 24 month rule kicks in as soon as you expect to go over two years.

[northernladuk]

Not completely true. The 24 month rule kicks in as soon as you expect to go over two years.

Indeed and if you are 12 month contracts it could fall that is at the beginning of the 2nd contract. Ouch!

[WordIsBond]

Indeed and if you are 12 month contracts it could fall that is at the beginning of the 2nd contract. Ouch!

Yeah, I suppose if someone has significant travel expenses they should not sign a second 12 month contract. Put a termination date on it a week before. Use your brain. You are going to want a higher rate once the two year thing kicks in.