Clarification on "2 year rule"

[Ardesco]

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.

Yes that is definitely the case. Can't you get the contract end date moved forward so that it doesn't end up being over 2 years...

[Chugnut]

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

Madness.

How on earth is anyone supposed to know at what point the extra 10 miles makes a difference within the context of the journey? 100 miles? 75 miles? This is wide open to interpretation.

Once again, another delightful grey area when clarity is needed. Clearly there's no point asking HMRC; one person will say 100 miles, the next 75.

[chris79]

Yes that is definitely the case. Can't you get the contract end date moved forward so that it doesn't end up being over 2 years...

I guess I could ask my agency if they are willing to do this, I'm concerned that by doing so might have any 'investigation' implications?

[chris79]

Madness.

How on earth is anyone supposed to know at what point the extra 10 miles makes a difference within the context of the journey? 100 miles? 75 miles? This is wide open to interpretation.

Once again, another delightful grey area when clarity is needed. Clearly there's no point asking HMRC; one person will say 100 miles, the next 75.

Exactly what I was thinking, it's nuts.

[Ardesco]

I guess I could ask my agency if they are willing to do this, I'm concerned that by doing so might have any 'investigation' implications?

How? You are effectively saying you are only available up until this point, maybe because you have something else on the back burner. What are they going to investigate you for?

[Ardesco]

Exactly what I was thinking, it's nuts.

Of course it's nuts, but that's the Nu Liemore way!! FUD and legislation that means you can backdate your decisions so that you can screw honest law abiding tax payers out of even more money in the future should the fancy take you......

[SueEllen]

Madness.

How on earth is anyone supposed to know at what point the extra 10 miles makes a difference within the context of the journey? 100 miles? 75 miles? This is wide open to interpretation.

Once again, another delightful grey area when clarity is needed. Clearly there's no point asking HMRC; one person will say 100 miles, the next 75.

Most of the laws/rules in the UK have grey areas. Otherwise the solicitors and barristers in this country wouldn't make as much money.

Anyway if HMRC lose they just change the law in their favour.

[DS24]

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.

If you are offered a new contract, then get the length changed so that you are under two years.

The absolute worst thing is to have signed a one year contract (that will take you over the two years). You work on it for six months, claiming no expenses because you are over the two year rule. Client terminates the contract, so you weren't there for the two years. You can't go back and claim the expenses, though.

It's only fair

[moorfield]

Is there any documented account of Hector doing anyone for not complying?
I had a quick squiz on the PCG site but couldn't see anything.

[GreenerGrass]

So moving to Canary Wharf after 2 years in the Square Mile you should still be able to claim travel expenses? - if you live near London (but not Scotland, unless you are an MP)