Quick question - 24 Month Rule

[chrisl]

Just a quicky as i know how many times this has been done before, i cant find my exact circumstances though.

If i now work over 2 years at the same place of work, and have stopped claiming mileage expesnes, if the client decides to send me to another office say once a month 100 miles away, can i still claim this as it isnt the same place of workplace i spend 99% of my time.

Also if i am sent abraod once every few months, i guess i can still claim flights as normal based on the fact i am not going to my normal place of work.

[pmeswani]

Just a quicky as i know how many times this has been done before, i cant find my exact circumstances though.

If i now work over 2 years at the same place of work, and have stopped claiming mileage expesnes, if the client decides to send me to another office say once a month 100 miles away, can i still claim this as it isnt the same place of workplace i spend 99% of my time.

Also if i am sent abraod once every few months, i guess i can still claim flights as normal based on the fact i am not going to my normal place of work.

Personally, I would check if you can reclaim your costs from the client rather than claiming the cost from your Ltd co.

[Flubster]

With the usual IANAA disclaimers, yes - you can claim for the journeys to these other places of work.

[Gonzo]

With the usual IANAA disclaimer too, I concur.

The location that you have previously been travelling to can no longer be classed as a temporary workplace so you can no longer claim travelling expenses to it.

Any other locations will still be classed as a temporary workplace (until they are no longer a temporary workplace due to you attending them too frequently for too long).

[Bob Jones]

In the circumstances you quote attendance at the new workplace is not affected by the 24 month rule. Even though HMRC instructions may suggest otherwise there is now no such thing as a “normal” workplace. That was a non statutory term in common use before the new legislation came into effect in 1998 but, on the assumption that travelling expenses are not in the performance of the duties and already allowable, it is necessary to consider the workplace and whether it is either permanent or temporary - the latter being subject to restrictions.
On the assumption that attendance at the workplace is for a period of limited duration or some other temporary purpose then the expense is allowable as you will not be spending a significant amount of time at the workplace. “Significant” is not defined in law but the rule of thumb is 40%. As long as the attendance is for a period of limited duration or a temporary purpose frequency/regularity is not an issue. The claim will pass or fail by virtue of S339(5) of the Act and for the claim to be considered for failure attendance has to be for more than 40% of the time.
Travel abroad will qualify on the same basis as above. There are some special rules relating to travel abroad but they come into play only if the claim otherwise fails. When considering travel abroad the claim is first of all considered under the travel in the performance of the duties rule. If that fails then consider under the temporary workplace rules and if that fails then, and only then, consider under the special rules relating to travel abroad.
Hope this helps .. further information on travel rules is available at http://www.contractoralliance.co.uk/...ctor_expenses/

Bob
www.internet-taxation.co.uk

[TykeMerc]

What they said yes, since the alternate location isn't substantially the same trip it's clearly not subject to the 24 month rule as applied to your current location.

[chrisl]

Thanks for your help all