Mileage and 24 month rule

[malvolio]

surely 2 x 12 month contracts is ok as that is only 24 months not more than 24 months ?

Yes that's fine. It's only once you are committed to going over 24 months the problem starts, and that applies if you learn that on the first day, the last day or any day in between.

[oxtailsoup]

I am working for a client in London with two London addresses.
The first address is Central London W1 and the second address is near Wembley. I can work at either address (my decision). Each week I travel to London for two days (1 night in hotel). I work from home for the other three days.

I also travel to Glasgow every other week just for a day.

My train fares to London are claimed back from the client (and hotel bill).

I am now in my second year of the contract (its a three month rolling contract) and my contract states that my working address is my home office. I don't know if this would make one iota of difference but it seemed more IR35 friendly.

Will I still be able to claim expenses for travelling to London after the 2 year rule?

[Cowboy Bob]

surely 2 x 12 month contracts is ok as that is only 24 months not more than 24 months ?

Depends on how it's done. Say that in between the two 12 month periods you have a week off - I always take a small break between extensions, for example. Chances are the client is going to want to start the second contract when you return from your break - in which case you have instantly hit the 24 month rule.

[FiveTimes]

Depends on how it's done. Say that in between the two 12 month periods you have a week off - I always take a small break between extensions, for example. Chances are the client is going to want to start the second contract when you return from your break - in which case you have instantly hit the 24 month rule.

If you know that the renewal is going to take you over the 24 month period, couldn't you negotiate for the renewal to be 11 months ?

[Bluebird]

I am working for a client in London with two London addresses.
The first address is Central London W1 and the second address is near Wembley. I can work at either address (my decision). Each week I travel to London for two days (1 night in hotel). I work from home for the other three days.

I also travel to Glasgow every other week just for a day.

My train fares to London are claimed back from the client (and hotel bill).

I am now in my second year of the contract (its a three month rolling contract) and my contract states that my working address is my home office. I don't know if this would make one iota of difference but it seemed more IR35 friendly.

Will I still be able to claim expenses for travelling to London after the 2 year rule?

No, you are still caught.

[Bluebird]

If you know that the renewal is going to take you over the 24 month period, couldn't you negotiate for the renewal to be 11 months ?

yes.

[oxtailsoup]

No, you are still caught.

I thought there was something about a 40% rule? i.e. it is only regarded as your normal place of work if you spend more than 40% of your time there. I spend 40% or less of my time in the London offices so it is regarded as a temporary place of work?

[Bluebird]

I thought there was something about a 40% rule? i.e. it is only regarded as your normal place of work if you spend more than 40% of your time there. I spend 40% or less of my time in the London offices so it is regarded as a temporary place of work?

Yes there is a 40% rule, however as your 2 sites are both in London I don't think that applies - it's another of the "fuzzy" IR rules

[DaveB]

Yes there is a 40% rule, however as your 2 sites are both in London I don't think that applies - it's another of the "fuzzy" IR rules

It depends where in London the offices are. HMRC counts "The City" as one location but Wembly should be far enough away to count as a different location.

[oxtailsoup]

But surely if the 40% rule is correct then I won't be caught by the 2 year rule? i.e. my main place of work will be at my own office at home as I usually spend 3 days a week there? And the 2 sites in London can always be one site in London if that helps as I can choose which one I work at. But it is only for 2 days per week max anyway.

Why is everything so bloody fuzzy with these types of things? Has anyone got a link to the rule on the HMRC web site... I can't find it. Will also write to SJD for their view.