2 year rule

[TheFaQQer]

By-the-way, and only as I was talking about it - does having 2 concurrent contracts mean I'm more or less untouchable as to IR35 status?

No. IR35 is assessed on a contract by contract basis, so having two makes no difference.

[Old Greg]

I don't think it's complicated: you are suffering from poor advice, that's all...

Also, you can continue to claim expenses, the only difference is that you will have to pay tax on them as a benefit in kind, so there's not really much point in claiming them. The logical thing to do though is work them out as a proportion of your income and when you get the fateful renewal that blows the 24 months, ask for a proportionate rate increase.

As for how long you are there, surely it is a sign of a well run business that a client wishes to retain your services for an extended period - which incidetnally was one of the arguments used by the 9 year guy...

Thanks for that - I probably have had poor advice but I still maintain it's complicated (a temporary place of work can be 2 separate places with different employers within the square mile?), but that's what my accountant should be sorting out for me.

[ASB]

By-the-way, and only as I was talking about it - does having 2 concurrent contracts mean I'm more or less untouchable as to IR35 status?

Initially the paymaster general stated that the whole picture would be looked at. But unsurprisingly this didn't make it into the legislation.

As stated it's a contract by contract basis - but remember that the contract being assessed is not the one you have signed, simply one that is inferred from the arrangements.

In the event that this is a marginal then the whole picture should be considered in determining status and in this circumstance multiple concurrent contracts might be a point away from IR35.

[damo111176]

Someone I know expects their contract to roll over the 2 years with the same end client at the same location.

The contract is set as the clients head office not the loval office he attends. He has been advised by other colleagues that they have carried on claiming subs and mileage regardless of being with the company over 2 years as a contractor. He believes that becauise he has had his contract reworded, notice period extended and a few other things that he has reset the 2 years yet will still continue to attend the same office.

So who's right, I was under the impression that 2 years at the same location regardles of change of position or contarct put it as a perm workplace?

[malvolio]

So who's right, I was under the impression that 2 years at the same location regardles of change of position or contarct put it as a perm workplace?

That's certainly the way I understood it to be. Essentiallly HMRC's view is that if you travel to the same small area to work for more than two years, it's not exactly a temporary workplace any more. YourCo can still pay for the travel, of course, it's just that you have to pay tax on it, so it's still a bit of a saving.

[THEPUMA]

That's certainly the way I understood it to be. Essentiallly HMRC's view is that if you travel to the same small area to work for more than two years, it's not exactly a temporary workplace any more. YourCo can still pay for the travel, of course, it's just that you have to pay tax on it, so it's still a bit of a saving.

I don't understand. How is it still a bit of a saving?

[damo111176]

That's certainly the way I understood it to be. Essentiallly HMRC's view is that if you travel to the same small area to work for more than two years, it's not exactly a temporary workplace any more. YourCo can still pay for the travel, of course, it's just that you have to pay tax on it, so it's still a bit of a saving.

Thats what I thought, guess its similar to people claiming expenses they don't actual incur etc , many will do it and many will get away with it. I'll sleep easy.