2 year rule..a bit cloudy this one

[Billy Pilgrim]

The way to calculate it is to look at when you first started working in a particular location. If it was less than 24 months ago (and you expect it to be less than 24 months from the end of your contract) then it is fine to claim the expenses. If it will be more than 24 months from the end of the contract then you can still claim expenses if you have spent less than 40% of the time in that location.

In your inital communications it seemed that it wouldn't be 24 months since you started working in London so that would be fine. Now that you've said that you did some work in London which will take you over the 24 months then you need to look at the overall percentage of time - which will be more than 40% - so you shouldn't claim them.

But could you class a few meetings as working in London...??? Looking back at my accounts for end of 2008 I make it 5 days out of 3 months that I went to London for meetings...rest of the time was midlands/home based. Would that REALLY start the two year clock??

[lje]

But could you class a few meetings as working in London...??? Looking back at my accounts for end of 2008 I make it 5 days out of 3 months that I went to London for meetings...rest of the time was midlands/home based. Would that REALLY start the two year clock??

In my opinion yes it would. At the end of the day you need to decide this for yourself and be willing to defend it to the HMRC if necessary.

[Billy Pilgrim]

In my opinion yes it would. At the end of the day you need to decide this for yourself and be willing to defend it to the HMRC if necessary.

Indeed. I just put it to the board to canvas opinion.

Despite the fact that there are guidelines they seem so open to misinterpretation that you can never feel safe.

Interpreted one way you could argue that any contract longer than 10 months would always fall foul of the two year rule since from the moment you sign it you will know that in 10+ months time you would have worked more than 40% of your time in a temporary workplace. Weird