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length of @#%$ issues

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    length of @#%$ issues

    Are there any issues regarding tax/ir35 etc if a contract goes over 2 years?
    I have been in the same contract, in the same location and through the same agency for almost 2 years and I think I have heard somewhere that after 2 years in the same contract you are treated differently by IR.
    Does anyone know if this is the case, or have I got the wrong end of the stick completely?

    Thanks.

    #2
    After two years (or actually after the point when you know it will go over two years such as when you begin an extension beyond that point) you are no longer able to claim travel and subsistence payments. Look at Booklet 490 on IR webtulipe.

    Not related to a two year period as such but the longer the contract the more likely it is to be considered by the IR as subject to IR35, although length is only one of many factors.

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      #3
      Hi xoggoth,

      many thanks for the answer, mush appreciated.

      Comment


        #4
        what happens if you close your existing limited company, and sign the new contract through a newly setup replacement ?

        the 2 entities are legally separate, so do they hit you as an individual, or hit the company ?

        Comment


          #5
          The rules are individual based. The name of the employer/client is irrelevent.

          tim

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            #6
            We've done this before so check the archives.
            It even includes examples from the IR pdf which highlights the problems of working and moving between customers in the city (literally streets apart).

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