Question about 2 year limit on expenses

[dts256]

The company I'm working for has been taken over by another company. My new contract (up for renewal soon) will be with the new company. I'm coming up to the two year limit for expenses and I'm wondering if this will count as a new contract so that I get another two years starting with my renewal. I've not been in this situation before so I'm not sure how it works in these particular circumstances.

[Clare@InTouch]

No, the two year rule is based on location, not client. Unless you significantly change your journey, or you're working for less than 40% of your time there, then the two year rule will apply and you'll not be able to claim travel or subsistence.

[dts256]

That's a bummer isn't it.
Thank you for the clarification.

[tarbera]

ask for a rate reduction

That's a bummer isn't it.
Thank you for the clarification.

and ask client to pay your expenses directly (out of your reduction) job done

[malvolio]

and ask client to pay your expenses directly (out of your reduction) job done

Good Idea. Personal payments from the client are always good. And don't forget to ask for a rate rise to cover off you new-found IR35 liability at the same time.

[css_jay99]

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

[Moscow Mule]

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

I think rule is something like 40% of the time for it to be temporary - plenty on the HMRC website about this with examples.

[Ruprect]

The company I'm working for has been taken over by another company. My new contract (up for renewal soon) will be with the new company. I'm coming up to the two year limit for expenses and I'm wondering if this will count as a new contract so that I get another two years starting with my renewal. I've not been in this situation before so I'm not sure how it works in these particular circumstances.

You realise it's only in relation to travel expenses right?

[Wanderer]

Don't make the mistake of thinking that because you are paying £500/month in expenses and you can't claim that any more that you should be getting a £500/month pay rise. You only get back 20% of the expenses so figure out how much your monthly expenses are, calculate 20% of that and that's the pay rise you have to ask for if you are going to keep working in the same location without being out of pocket.

Bear in mind that if you take another job then it has to be in a substantially different location or you can't start claiming again.

[LisaContractorUmbrella]

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

I'm afraid I don't think you will be ok. Assuming you work 5 days a week - over 24 months you will have worked approx 288 days in Kent and 192 days in Surrey (this is assuming 2 days per week every week in Surrey and working 48 weeks per year) - total time spent 480 days. 288 days is 60% of your time which exceeds the 40% rule. Sorry