Claiming travel expenses right at the end of 23rd Month

[scope]

Where do I stand if I after 23 months on a 23.9 month contract (to make sure we are talking contracts for same client less than 24 months) buy an annual train ticket? Would I be able to claim on expenses, as it was purchased before the 24th month? Or would they not allow it? Im just trying to see if purchasing an annual train ticket before my renewal (from which point I cant claim trvel expenses) would allow me to effectively get the travel tax free for the next year aswell.. I suspect the answer is no, but technically the expense happened when I could still claim.

[pmeswani]

Where do I stand if I after 23 months on a 23.9 month contract (to make sure we are talking contracts for same client less than 24 months) buy an annual train ticket? Would I be able to claim on expenses, as it was purchased before the 24th month? Or would they not allow it? Im just trying to see if purchasing an annual train ticket before my renewal (from which point I cant claim trvel expenses) would allow me to effectively get the travel tax free for the next year aswell.. I suspect the answer is no, but technically the expense happened when I could still claim.

Firstly, unless someone can correct me here, you have to stop claiming any expenses the moment you know your contract is going to be 24 months or more. So if you get a renewal after 18 months that lasts for 6 months or more, your expenses becomes BIK. I can't explain the ins and outs, but that is the gist of how I understand it. If I am wrong, fair enough.

[eek]

Where do I stand if I after 23 months on a 23.9 month contract (to make sure we are talking contracts for same client less than 24 months) buy an annual train ticket? Would I be able to claim on expenses, as it was purchased before the 24th month? Or would they not allow it? Im just trying to see if purchasing an annual train ticket before my renewal (from which point I cant claim trvel expenses) would allow me to effectively get the travel tax free for the next year aswell.. I suspect the answer is no, but technically the expense happened when I could still claim.

No because it would have been bought on the basis that you contract will be renewed taking you into the 24th month.

Remember that you can only claim expenses up to the point that your contract can be foreseen to extend over 24th months. So if after 13 months you (foolishly) signed a 12 month extension that would be the point when you had to stop claiming expenses.

[TykeMerc]

What they both said.

The 24 month limit kicks in as soon as you can reasonably assume you will pass 24 months. If you signed a 25 month contract to start then you can't claim expenses to a "temporary" workplace as that's assumed to be permanent at 24 months.

It's the same even if you've had multiple contracts with multiple customers if the travel is substantially the same.

[Steven@Parasol]

Where do I stand if I after 23 months on a 23.9 month contract (to make sure we are talking contracts for same client less than 24 months) buy an annual train ticket? Would I be able to claim on expenses, as it was purchased before the 24th month? Or would they not allow it? Im just trying to see if purchasing an annual train ticket before my renewal (from which point I cant claim trvel expenses) would allow me to effectively get the travel tax free for the next year aswell.. I suspect the answer is no, but technically the expense happened when I could still claim.

The above posters are right, the two year rule kicks in as soon as you know that you contract will go over 24 months.

So even if you are a month into a contract and are then told you will get an extension taking you over 24 months, the rule applies.

If you has bought the season ticket a month before you knew of the extension, then you would only be able to claim for that month.

[LisaContractorUmbrella]

Where do I stand if I after 23 months on a 23.9 month contract (to make sure we are talking contracts for same client less than 24 months) buy an annual train ticket? Would I be able to claim on expenses, as it was purchased before the 24th month? Or would they not allow it? Im just trying to see if purchasing an annual train ticket before my renewal (from which point I cant claim trvel expenses) would allow me to effectively get the travel tax free for the next year aswell.. I suspect the answer is no, but technically the expense happened when I could still claim.

As everyone has said the 24 month rule kicks in when you know that your contract will be extended beyond 24 months. Even if you have only just found out about the extension you would still not be able to claim the cost of the season ticket as 11/12th's of the cost relates to future months.

[scope]

Thanks for the replies.. I guessed so much..

I am fully aware of the situation of claiming past 24 months, so my next extension will only be up to 24 months, not beyond (I was trying to make that clear in my first post). If they choose to extend beyond 24 months with another extension I know I wont be able to claim travel expenses.

[eek]

Thanks for the replies.. I guessed so much..

I am fully aware of the situation of claiming past 24 months, so my next extension will only be up to 24 months, not beyond (I was trying to make that clear in my first post). If they choose to extend beyond 24 months with another extension I know I wont be able to claim travel expenses.

But as I hinted at if you buy an annual pass on the basis that you expect the contract to go beyond 24 months you really shouldn't claim for any part of that annual pass. While I do know that you can reclaim any unused parts of the pass I doubt the inland revenue would accept that argument.

[xoggoth]

Just an expectation or hope of staying on in the absence of an actual extension offer might does not count as knowing your contract will exceed 24 months but plainly if you are considering buying an expensive ticket you must have had that offer.