more than 24 months claiming expenses - any way around?

[scope]

Hi all,

I've been lurking around the forum for a while trying to understand the world of contracting - now I finally have a question I need to ask:

I am currently working as following:

Me -> Umbrella company (Company A) -> Company that deliver workers to end Client (Company B) -> End Client (Company C)

I am coming up to 24 months shortly (multiple renewals) and with travel expenses in the region of £1000 every month it would be a shame if I cant claim this through expenses to get it tax free.. I think I understand the problem when I come up to the renewal that will take me over 24 months, however I would like if there is a way around this. As you can see above In effect I work for company B, who in turn delivers my services to Company C (this is also the way payments go: Company C -> Company B -> Company A -> Me). Would it make a difference if Company B was changed for another company that also deals with Company C? I would still travel to the same office, doing the same job - however I would like to check if this would give me another 24 months, as I in effect would be work for another company (even though the work I do is for Company C).

I hope I have explained the problem, and if there is any way of getting another 24 months (or whatever I end up doing, over and above 24 months) where I could claim travel expenses.

[cojak]

It's got nothing to do with the company and everything to do with the location. You could be with a different company working in a different office but in the same area as the first contract and they'ed still get you.

Google 24 month rule and this site will appear with more info.

[xoggoth]

http://www.hmrc.gov.uk/helpsheets/490.pdf

[gingerjedi]

Also you should stop claiming as soon as you know the contract is likely to be over 24 months, you should have stopped at the last renewal.

[TykeMerc]

What Cojak and Gingerjedi said is spot on.

1. If your journey is substantially the same then it's irrelevant who you're working for, as soon as you hit 24 months +1 day you can't claim expenses for travel to a temporary place of work. That work doesn't have to be for the same client ar even be in the same postcode.

2. As soon as you KNOW you're going to be at substantially the same travel for 24 months +1 day you should stop claiming. Example. You contract for 6 weeks, then get multiple extensions that take you to 18 months. A month before your last extension ends you then get offered and accept a 6 month extension, that takes you past 24 months and you should stop claiming expenses as soon as you accept the offer. That's at a bit more than 18 months in.

[northernladuk]

If you have been lurking you should have noticed the sticky with a load of links about this and also there is a 6 page threadon this exact topic only a few posts down from this one that covers this in great detail.

[Wanderer]

I am coming up to 24 months shortly (multiple renewals) and with travel expenses in the region of £1000 every month it would be a shame if I cant claim this through expenses to get it tax free..

As others have said, it's the location that counts not the company you work for.

If you are working through an umbrella, consider getting your contract IR35 reviewed and setting up a LTD. You will take home a lot more money, depending on your daily rate it might more than pay for your travelling costs...

[scope]

If you have been lurking you should have noticed the sticky with a load of links about this and also there is a 6 page threadon this exact topic only a few posts down from this one that covers this in great detail.

I know, but in my situation I am contracted to work with Company B, yet they hire me out to work for company C.. Which is why I though if my contract was with another company (Company D), it might change the way the 24 months are counted.

I would love to set up an LTD, but are too worried I'll be caught by IR35, as I am working for the same company, doing the same job, for a longer period of time. Is it all down to the wording of the contract, or do they actually look into where you are working, etc?

[Fred Bloggs]

I know, but in my situation I am contracted to work with Company B, yet they hire me out to work for company C.. Which is why I though if my contract was with another company (Company D), it might change the way the 24 months are counted.

No, it definitely doesn't reset the clock. To reset the clock you need to change locations.

[ShandyDrinker]

No, it definitely doesn't reset the clock. To reset the clock you need to change locations.

I think you have to be careful with this as I was looking at it only recently. The link (provided by another poster) on the HMRC website states something to the effect of if you spend more than 40% of your time in a particular location over 24 months then you will no longer be able to claim expenses.

I am in the situation where I have spent approximately 20 months at client A site, with a break of 5 months at other clients and have now been asked if I would be prepared to go back to client A. As travel and accommodation to this site is expensive (outside of the UK) I'm currently not sure whether I'd be able to claim travel and accommodation as it would probably put me over the 24 months.

So from Fred's post I changed locations but am not 100% sure that it does reset the clock even though I had no idea the extra work may come about...

Anyone else been in a similar situation and have a view?