40% rule. 40% of what?

[ittony]

I've got a temporary part time contract which starting to look like it might go beyond 24 months, however its pretty close to 40% depending on how you measure it. So is it 40% of 5 * 52, or 40% of days actually worked (which may be 6 * 52, less holidays), or something else?

[malvolio]

I's not a hard and fast rule, merely HMRC's usual fuzzy description of the reality, but 40% of time worked is the way I read it: i.e. less than 60% on site.

[WordIsBond]

40% of working time. It is hard and fast and specific.

https://www.gov.uk/hmrc-internal-man...anual/eim32080

https://www.gov.uk/hmrc-internal-man...anual/eim32092

The second link is an example in which someone only works two days a week, one at a temporary site that exceeds 24 months. Because it is more than 50% of working time, even though it is only one day a week, the 24 month rule applies.

[Skye2011]

Yes, it is 40% of your working time.

The rules are quite clear, and although the guidance is old it is all there for you. And for once with HMRC some good examples given.

[MonkeysUncle]

Hi
On the back of this is it 40% at one client??
To expand
If I am working for 2 clients, both in London and close to one another but only doing 20% at 1 and 30% at another.
Does that count as 50% in one location (as they are both close to one another and there is no change to my travel)
or it is per contract?
I read somewhere that location is everything!!!

[malvolio]

Hi
On the back of this is it 40% at one client??
To expand
If I am working for 2 clients, both in London and close to one another but only doing 20% at 1 and 30% at another.
Does that count as 50% in one location (as they are both close to one another and there is no change to my travel)
or it is per contract?
I read somewhere that location is everything!!!

Take a look at the sticky. The first thing it says is worth remembering - "Not again"...

The rest is pretty relevant as well

HTH.