2 years contract - when can I return?

[Dbart]

Please can anyone advise me.

I have been in a contract position now for about 18 months. Currently due to end in 3 months. This means i will have done 21 months.

If I'm offerred an extension I will ensure it's for less than 3 months to ensure I don't exceed to 24 month rule.

It's meant I've lived away Monday to Friday and therefore claiming 4 nights B&B accomodation. Fuel for the travel each way and evening meals back from my limited company.

Two question please:-

1. Is the above all ok?
2. subject to me ending before the 24 year rule - when could I return to contract at the same place?

Thanks everyone.

[malvolio]

1. Yes it's all OK

2. Who knows, the rules aren't precise. Have a read of this :-

http://www.lpwcs.com/wordpress/artic...out-24-months/

[Dbart]

Thanks for replying.

Does anyone else have input or experience on step 2 please?

[Hex]

I believe that after 24 months you are subject to a rolling 40% of your time rule. You count up all the time you spent working at the client site over the last two years and if that is < 40% of your total time worked then you can claim travel etc from that point onwards.

So if you worked on site for 24 months and then stopped for a year, you would still not be able to claim because counting back from the end of that year for 2 years you were off site for one year and on site for one year - so that means 50% of your time. Once you stay away for a few months more you would go under 40%. In fact, you would have to stay away for 24 * 60% = 14.4 months before you could go back and start claiming travel etc.

It gets more complicated if you keep going back there (e.g. one day a week) after the 24 months.

The above is my understanding but it may be wrong - I'd check with an expert. There's a tax expert called Bob Jones that sometimes posts on here.

[ASB]

You can return whenever you want. Question is presumably at what points the expenses become chargeable rather than BIK. Suggest a search on something like 24 month rule.

However there is no absolute guidance. Some accountants suggest 40% gap. There is of course another avenue. If you can reduce your attendance on site to 40% of working time you are in the clear (probably).

Also if you undertake substantive work elsewhere then this may potentially ease things.

[Hex]

Try asking on shout99 as well. Their experts panel may give good advice and Bob Jones is on there.

http://www.shout99.com/contractors/

[northernladuk]

The idea of the 24 month rule is that that is (in their eyes) more than a reasonable amount of time for anyone to be doing a job and travelling to sort themselves out and relocate to the area. Try thinking about the spirit of the rule when deciding how to dodge it. That might give you a better insight in to what is acceptable and not?

Wooly I know but the different way of thinking may make things a little more obvious where no directives or rules apply.