Clarification on "2 year rule"

[chris79]

Sorry to hijack this thread, but can anyone help clarify my own position here:-

Contracted for the same client since Aug 06 but under different umbrellas/ltd co's.

Site A
------
Aug'06-Jan'07 - Umbrella
Jan'07-Mar'07 - Limited co. 1

Site B
------
April'07 - current - Limited co. 2

So technically to summarise, I've worked for the same client, but at 2 separate locations, firstly under an umbrella, then a limited co through an MSC. I then moved to a new location approx 10 miles away for the same client and formed a new limited co. due to the MSC legislation.

When does my 2 years start from? I'm guessing it would be from April 07 as it's a new company, and its outside the square mile?

[r0bly0ns]

Sorry to hijack this thread, but can anyone help clarify my own position here:-

Contracted for the same client since Aug 06 but under different umbrellas/ltd co's.

Site A
------
Aug'06-Jan'07 - Umbrella
Jan'07-Mar'07 - Limited co. 1

Site B
------
April'07 - current - Limited co. 2

So technically to summarise, I've worked for the same client, but at 2 separate locations, firstly under an umbrella, then a limited co through an MSC. I then moved to a new location approx 10 miles away for the same client and formed a new limited co. due to the MSC legislation.

When does my 2 years start from? I'm guessing it would be from April 07 as it's a new company, and its outside the square mile?

I believe it's a personal thing, so it doesn't matter who youi were working for, just how long you were working at the 'location'.


I believe that 10 miles would be a suitable distance away from site A, so would agree that the clock would reset when you moved to site B.

However I am not a specialist

[NotAllThere]

IIRC, the criterion used is "Is the journey substantially the same". If yes, then it's considered the same place.

[chris79]

Hmm, the journy is half the distance from my registered business address, it used to be 20 miles, now it's 10. I guess I can reset the clock then from April.... the worst that can happen is I'll have to repay my claimed mileage?

[SueEllen]

Hmm, the journy is half the distance from my registered business address, it used to be 20 miles, now it's 10. I guess I can reset the clock then from April.... the worst that can happen is I'll have to repay my claimed mileage?

Is the journey substantially the same as in time to get to the workplace, distance and cost?

[r0bly0ns]

Is the journey substantially the same as in time to get to the workplace, distance and cost?

Surely those aren't the criteria?


Do HMRC honestly say that traveling 10 miles east on the M62 would take you to the same location as travling west 10 miles on the same road?

[SueEllen]

Surely those aren't the criteria?


Do HMRC honestly say that traveling 10 miles east on the M62 would take you to the same location as travling west 10 miles on the same road?

You can read the criteria yourself in my previous post.

The example HMRC give you is for the city of London where travelling into the zone 1 for different clients means your journey is substantially the same give or take a tube stop. The same could be argued for any other city or town centre.

Travelling 10 miles East and 10 miles West on a motorway will take you to different places so very few people would argue it's substantially the same journey.

[r0bly0ns]

Phew

[Hex]

You can read the criteria yourself in my previous post.

The example HMRC give you is for the city of London where travelling into the zone 1 for different clients means your journey is substantially the same give or take a tube stop. The same could be argued for any other city or town centre.

Travelling 10 miles East and 10 miles West on a motorway will take you to different places so very few people would argue it's substantially the same journey.

According to Bob Jones the Taxation expert on shout99 website, the difference between sites has to be viewed in context of the whole journey. So if you were travelling to London from Scotland then whether you go 10 miles east or 10 miles west at the end of a 300 mile journey would make little difference to the journey itself. If you were only doing a 15 mile journey it would.

There is a post here going in to this further:

http://www.shout99.com/contractors/s...le.pl?id=46521

[chris79]

Damn, I'm glad I read this thread and was reminded about the situation regarding "knowing" if you will exceed 2 years..

I had a 12 month contract originally signed on 6th April 2007, but there was a change in T&C's which means that the contract now ends on 11 April 2008. I've heard through the grapevine there are plans to offer me a 12 month extension, so this means that technically when I sign it, it takes me into 2 years and a week.

I guess this means that at the point I sign the 12 month extension, I will KNOWINGLY be breaking 2 years, so I must stop claiming travel expenses from the date I sign which will probably be sometime in the next few weeks?

If this is the case, it's worked out pretty sh*t because the change in contract has effectively extended my first 12 months by a week, so on renewal it makes it knowingly 2 years and a week.

Not the end of the world I guess if this is definitely the case (which from what I've read sounds like it is).. I only claim 20 miles a day, not a huge amount like some people I know.