I am trying to work out the effect that the 2 yr rule will have on me. My basic understanding is that I can no longer claim ‘everyday travel’ expenses from my office (home) to my place of work (site). I know many people on here say to up your rate to cover the travel costs, but if I pay myself more then I use up more of my personal allowance don’t I?
For example
Personal allowance is £38k for the year.
Take £2500 a month “salary” = £30k for the year
Draw £300 travel expenses a month = £3600
Take “top up divi’s” of £8k
Total in my pocket = £41,600
Now with the 2 ur rule
Take £2500 a month “salary” = £30k for the year (and have to spent £300 a month on travel)
Draw no travel expenses a month = £0
Take “top up divi’s” of £8k
Total in my pocket = £38k
For example
Personal allowance is £38k for the year.
Take £2500 a month “salary” = £30k for the year
Draw £300 travel expenses a month = £3600
Take “top up divi’s” of £8k
Total in my pocket = £41,600
Now with the 2 ur rule
Take £2500 a month “salary” = £30k for the year (and have to spent £300 a month on travel)
Draw no travel expenses a month = £0
Take “top up divi’s” of £8k
Total in my pocket = £38k
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