The 2 year rule - workaround?

[oldtimer45]

I have a (completely hypothetical ) query on the 2 year rule, which I could do with some advice on, as follows

Assume I worked for an umbrella company under PAYE for nearly 2 years, and had a contract at the same site, but on my 2nd anniversary resigned from the umbrella company and joined another umbrella, but continued the contract at the same site.

Could I in theory claim expenses from the new umbrella (and the taxman) as if it was my first contract, given that I had a new employer?

just a thought!

[THEPUMA]

Nope afraid not.

Even if you continue to work at a different site in the same vicinity, you cannot continue to claim expenses.

Joel

[BOBJ]

Some people get their rate increased to cover the lack of expenses etc...I don't imagine many companies agree to this though. You'd need to be pretty damn indispensable...

[Sockpuppet]

Anyway its from when you know you are going to be there over 2 years. So if you had 2 x 1 year contracts for the whole of the second one you couldnt claim.

[chris79]

Anyway its from when you know you are going to be there over 2 years. So if you had 2 x 1 year contracts for the whole of the second one you couldnt claim.

that's not true.

You would be fine in year 1

You would also be fine in year 2, but at the point in year 2 you are notified it will continue a day past 2 years, that is the point in which the 2 year rule applies, so it they notify you of an extension after 1 year and 11 months, you would be bound by the 2 year rule at exactly this point.

[Euro-commuter]

Some people get their rate increased to cover the lack of expenses etc...I don't imagine many companies agree to this though. You'd need to be pretty damn indispensable...

As in, they want to keep you for over 2 years?

[XLMonkey]

When it comes to travel expenses, the taxman doesn't care who you work for (or through), only where you work. 2 years in the same place and you are no longer entitled to travel expenses, even if you change clients during that period.

[Jammy Dodger]

i had a row with brooksons over this when i worked for the a few years ago.

after being told that it was based on vicinity, i asked what was the minimum distance that the taxman would consider as a new site......no answer.

[craigscoob]

.

.k

[Ruprect]

that's not true.

You would be fine in year 1

You would also be fine in year 2, but at the point in year 2 you are notified it will continue a day past 2 years, that is the point in which the 2 year rule applies, so it they notify you of an extension after 1 year and 11 months, you would be bound by the 2 year rule at exactly this point.

Not that I don't believe you chris, but could any of the old timers confirm this? If I sign a 1 year extension after one year do I have to stop claiming travel expenses at that point or not?