Question about 2 year limit on expenses

[contractor55]

With regards to the 2yr rule. if you have been contracting for 18 months for a Co. and then they offer you another 1 year then as I understand it you should stop the claim at the 18th Month mark as you know the contract takes you over 24 months - Is this correct ?

However say you leave the contract on the 23rd month - can you confirm back the travel etc as now you are under the time limit

[Waldorf]

I have been at the same gig for 3.5 yrs now

I live in London and work in Kent. I sometimes have to go to another office in Surrey (...about 1-2 times a week )

I take it that I am still allowed to claim home to Surrey trip despite the 2yr rule?

...pls let it be OK.... cos I have been claiming it for the last 1.5yrs and it does come up to a fair wedge!



css_jay99

Based on lisa's calculation Surrey seems to be ok.

Perhaps this will help - http://www.nixonwilliams.com/images/...nth%20Rule.pdf

[dts256]

Thanks all for your replies.

Ruprect
I was under the impression that it applies to subsistance as well as travel expenses, or have I got this wrong ?

Tarbera
I like your idea of asking for a rate reduction and then claiming the expenses back, but I'm not sure if it's going to be possible in my case.

I work for a very large company and there's probably going to be just too many people involved in different teams for them to believe that it'd be worthwile. Add to that, that we've just been taken over by another company and are currently going through the process of converting to the new systems. But I'll probably have a chat with my manager about this to see if he thinks it'd be feasible.

Also there's a few other contractors around who've been here for for a long time, so I'll have a chat with them as well to see how they've tackled this.

[Clare@InTouch]

Thanks all for your replies.

I was under the impression that it applies to subsistance as well as travel expenses, or have I got this wrong ?

That's correct, as subsistence is only claimable because it's part of allowable travel - therefore you cannot claim either if you exceed the 24 months.

[northernladuk]

Tarbera
I like your idea of asking for a rate reduction and then claiming the expenses back, but I'm not sure if it's going to be possible in my case.

You shouldn't like it. It's rubbish. Check Mals post below it and read it with a hugh <sarcasm> tag in front of it. But he is right. Contractors do not claim expenses, permies do. If you start doing this you will raise a huge flag for IR35 which I am sure you have read up on.

[dts256]

Northernladuk - Thanks for pointing that out. What I meant was that I like the idea of still being able to take home the same amount

This is the first time I've been in this situation, so I've never really had to consider the lack of expenses or IR35 before. I have done some reading on this but I am have really only just started to look at this.

A few people have mentioned that IR35 only comes into play if you pay yourself dividends. Is this correct ?

[LisaContractorUmbrella]

Northernladuk - Thanks for pointing that out. What I meant was that I like the idea of still being able to take home the same amount

This is the first time I've been in this situation, so I've never really had to consider the lack of expenses or IR35 before. I have done some reading on this but I am have really only just started to look at this.

A few people have mentioned that IR35 only comes into play if you pay yourself dividends. Is this correct ?

Sort of. It is only if your contract falls outside of IR35 that you are able to draw dividends from your personal limited company - whether or not you are inside or outside of IR35 depends of the level of supervision, direction and control that the client has over your working practises

HTH

[dts256]

Thanks Lisa.

Does it make any difference if you're working through an umbrella company, as in that case you are an employee (of the umbrella company) and you are treated as such for tax and NI, albeit that you pay the employer NI as well.

[Clare@InTouch]

Thanks Lisa.

Does it make any difference if you're working through an umbrella company, as in that case you are an employee (of the umbrella company) and you are treated as such for tax and NI, albeit that you pay the employer NI as well.

IR35 won't apply if you're working through an umbrella, but you may have to be aware of the upcoming Agency Workers Regulations.

Lisa can advise on what travel expenses you can claim through a brolly, that's her field of expertise

[LisaContractorUmbrella]

IR35 won't apply if you're working through an umbrella, but you may have to be aware of the upcoming Agency Workers Regulations.

Lisa can advise on what travel expenses you can claim through a brolly, that's her field of expertise

Thanks Clare You are right - IR35 does become irrelevant because all brolly users are automatically paid via PAYE. With regard to travel expenses, that will depend on individual circumstances - I would mention that we have a guide to expenses on our website but that would get me in trouble with mods