2 year rule..a bit cloudy this one

[Billy Pilgrim]

Been on a contract since September 08 – which was based in the midlands until the end of December 2008 – and then has been predominantly (i.e. significantly more than 40%) based out of London

Been offered another extension (up till year end) – which takes me beyond two years in the same contract BUT NOT 2 years at the same location (only just mind !!!!)

At what point must I stop claiming expenses (infact its worse than that isn’t it – it means that I have to pay my ‘expenses’ as PAYE/NIC etc ??)

I’m hoping that I can still sign this contract since I will not be 2 years in the same location !!!

Any advice greatly appreciated on this one

[Stag Cozier]

At the point you know you are going to be there for more than 2 years i.e. when you sign the renewal; that's when you stop claiming your travel, meals and stopovers.

[LisaContractorUmbrella]

If the location of the new contract is not 'significantly' different to the original location then you should stop claiming expenses straight away as the 24 month rule applies as soon as your are aware that the contract will extend beyond 24 months

[lje]

It doesn't matter if you are in the same contract for more than 2 years - it's the location which matters. If you are now based in London and your extension takes you to less than 2 years based in London then you can still claim travel expenses.

[Billy Pilgrim]

It doesn't matter if you are in the same contract for more than 2 years - it's the location which matters. If you are now based in London and your extension takes you to less than 2 years based in London then you can still claim travel expenses.

Thats my take on it too - but was after a bit more advice from those on here - of which so far has been conflicting

Accountant is on hols at the moment so he is not in a position to help me at the moment - need to sign the contract or ask for an amendment tomorrow - but don't want to reduce the term by 3 months unless I really have to

[LisaContractorUmbrella]

Just re-read the OP - if you have been in the contract for two years or longer but at the same location for less than 2 years and the extension does not put you beyond 2 years you can still claim expenses

[Billy Pilgrim]

Just re-read the OP - if you have been in the contract for two years or longer but at the same location for less than 2 years and the extension does not put you beyond 2 years you can still claim expenses

Sounds about right to me too -- only fly in the ointment now is that my contract (and all renewals) actually specifies the midlands location as my place of work -- but my working practices are actually different - either London or home - hopefully that won't make any difference though

[northernladuk]

Another lazy 2 year rule that has been asked so many times before. Time for a sticky I think??

[Billy Pilgrim]

Another lazy 2 year rule that has been asked so many times before. Time for a sticky I think??

Indeed.

Was just after a bit of clarification from others before I sign the latest renewal - with my circumstances being slightly different to the norm (i.e. not in same location for all of contract)

I'm glad you could be bothered to reply though - cheers

[northernladuk]

If HMRC are going to come look at you you need to be squeeky clean. Having a contract that says Midlands but you are spending most of your time in the London area they are going to be all over you like a rash IMO. They don't care what the contract says, they will look at the working conditions.