2 Year Rule ?

[Bertie]

I live in Norfolk and have recently finished a two year contract in Manchester.

Have spent a few weeks at home 'resting' and it now looks like my next contract will also be in Manchester (different client).

Will the two year rule still apply (normal place of work / can't claim travel expenses thru my company) even though this will be a different client/contract ?

Any thoughts / advice appreciated

[Rookie]

Seem to remember this being discussed in the past.

Try here: http://forums.contractoruk.com/accou...ight=year+rule

[Bertie]

Seem to remember this being discussed in the past.

Try here: http://forums.contractoruk.com/accou...ight=year+rule

Thanks

[Bertie]

"EIM32106 - Travel expenses: travel for necessary attendance: the 24 month rule: breaks in attendance: example

An employee is employed as a computer consultant. She works full-time at a site for 18 months developing a new computer system. The work is then extended for another 18 months at the same workplace, for the roll-out of the new computer system. The roll-out is subject to a separate contract between the employer and client. A deduction is due for the full cost of travelling to the site for the whole of the first 18 month contract but no deduction is due for the cost of travelling during any part of the second 18 month contract.

The site is capable of being a temporary workplace because her attendance is for a limited duration, see EIM32075. Her attendance is in the course of a period of continuous work throughout the 36 month period (she works there for 40% or more of her working time) but it is not expected at the outset that the period will exceed 24 months. Therefore the site is a temporary workplace for the whole of the first 18 month contract.

After 18 months the expectation changes. With the addition of the second 18 month contract it is clear that the period at the site will exceed 24 months. Therefore, the site is treated as a permanent workplace from that time onwards. "


Thanks for the link to a previous discussion - which linked to the official rules.

As the above refers to same workplace and site, I would say that a different location (in my case 15 miles apart) / different company would mean the 2 year rule would not apply

[Troll]

I live in Norfolk and have recently finished a two year contract in Manchester.

Have spent a few weeks at home 'resting' and it now looks like my next contract will also be in Manchester (different client).

Will the two year rule still apply (normal place of work / can't claim travel expenses thru my company) even though this will be a different client/contract ?

Any thoughts / advice appreciated

Start a new company up and run the contract through that... sorted

[Fred Bloggs]

You're caught. Since you're travelling a long way to get to the North West region I think you'd have to be travelling to Liverpool or Chester instead for example, to argue you're not caught. Even then, you might be caught though as I understand it. Your trip needs to be significantly different to qualify again.

[Fred Bloggs]

Start a new company up and run the contract through that... sorted

That doesn't work. It's the person NOT the company that is caught by the 2 year rule.

[Bertie]

If it came to it, any judgement and / or defence would have to be based on documented rules and examples - especially those documented and published by the HMRC.

As far as I can see, the only 'official' example of how the rule applies is the one above.

With this in mind, I would would feel pretty confident about defending myself if it came to it.

That said, I'm gonna look pretty stupid if one of you guys refer me to a test case or sub clause that blows my theory out of the water !

[dang65]

You're caught. Since you're travelling a long way to get to the North West region I think you'd have to be travelling to Liverpool or Chester instead for example, to argue you're not caught. Even then, you might be caught though as I understand it. Your trip needs to be significantly different to qualify again.

This is where rules become totally absurd. If I lived in Birmingham and did an 18 month contract in Manchester followed by an 18 month contract in Bristol then I'd be entitled to claim expenses for both. If both 18 month contracts were in Manchester or both were in Bristol then I could only claim for the first 18 months? WTF is the logic in that?

[LisaContractorUmbrella]

The rule is that, if your journey does not change 'significantly' the 24 month rule will apply - unfortunately there is no definition for 'significant' so it is entirely subjective. It may be that an extra 15 miles could extend your journey time by 45 minutes - this could, IMHO, be considered significant.