2 year rule (slightly different to the usual question)

[DrEvil]

3 months time until I'll be up to 2 years at my current client.

However in anticipation and awareness of the two year rule I'm currently in contract negotiation to work from home instead which is over 100 miles away. This contract hopefully will take me well into next year. However there may be a requirement for me to come in may be a day a week, sometime a couple of days a week.

How does the 2 year rule apply to this given my new workplace will be home. Can I still claim travel expenses to visit the clients site?

[Craig@Clarity]

If your spend less than 40% on site and the contract is of limited duration (which I assume it would be) then you could claim your travel expenses etc. See the link EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule

[DrEvil]

Thanks Craig. I'm aware of the 40% rule however I think I'm falling into one of those grey areas
My understanding of the 40% rule was measured over a 2 year period have I been at that site.

Is it your belief that if my main workplace shifts to home and as I'll be there say 80/60% of the week that I can ignore the 2 year rule??

[SallyPlanIT]

3 months time until I'll be up to 2 years at my current client.

The 24 month rule comes into effect from when you "know" that you will be on site for 24 months or more, so for example, if you undertook a 12 month contract then had it extended for a further 12 months, the point at which you commenced that second contract is the point at which the rule comes into effect and you stop claiming the expenses.

If the 3 months you have now until the 24 month period is under a new contract, then you should have ceased claiming at the start of it.

[northernladuk]

If your spend less than 40% on site and the contract is of limited duration (which I assume it would be) then you could claim your travel expenses etc. See the link EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule

But that is 40% over a rolling period is it not so he cannot claim the odd travel to the other location until he is back under the 40% no?? If he travels the first week in to his new contract he is still 100% at that site and over 2 years.

[DrEvil]

The 24 month rule comes into effect from when you "know" that you will be on site for 24 months or more, so for example, if you undertook a 12 month contract then had it extended for a further 12 months, the point at which you commenced that second contract is the point at which the rule comes into effect and you stop claiming the expenses.

If the 3 months you have now until the 24 month period is under a new contract, then you should have ceased claiming at the start of it.

No at present my contract runs out in 2 weeks time, well before the 2 years. I've told them that if they want to extend me I have to work from home as I'll lose my expenses on the moment I agree a new contract. They have agreed to this though nothing has been signed yet. However they will want me on site at least 1 maximum 2 days a week.. I love all these lovely clear rules

[DrEvil]

But that is 40% over a rolling period is it not so he cannot claim the odd travel to the other location until he is back under the 40% no?? If he travels the first week in to his new contract he is still 100% at that site and over 2 years.

Thats my understanding too but its confusing as I'll have the same client but a different workplace which I guess is the key point. Its just that I'll be occasionally visiting a place I used to work at permanently surely??

[Craig@Clarity]

In my opinion, the way I interpret it is the current site is a temporary one since DrEvil hasn't been at the same site for 24 months. His new location is at home which I assume is also his trading address and therefore a permanent location as that is where he is employed from under his own limited company. He performs work from his permanent location and under his contract with his client is required to work 1 or 2 days away from his permanent location which accounts for less than 40% of his time.

It's similar, in my opinion to someone who has a 3 year contract to do specific work for a client but only travels 1 or 2 days to site i.e. less than 40% of their time. It would still count as a temporary workplace regardless of the total length of the contract.

[northernladuk]

Thats my understanding too but its confusing as I'll have the same client but a different workplace which I guess is the key point. Its just that I'll be occasionally visiting a place I used to work at permanently surely??

But the place your are visiting is still considered your permanent work place until you have spent less than 40%. Again, thats how I understand it.

Either way we are fudging a policy that is grey at best and was never meant to accomodate us. Thinking from a different angle...

Bearing in mind this only has a percentage change to what is actually in your pocket is it really worth pushing the boundries for one trip a week to save a small percentage of that? Is it a long journey and is it really worth risking?

[northernladuk]

In my opinion, the way I interpret it is the current site is a temporary one since DrEvil hasn't been at the same site for 24 months. His new location is at home which I assume is also his trading address and therefore a permanent location as that is where he is employed from under his own limited company. He performs work from his permanent location and under his contract with his client is required to work 1 or 2 days away from his permanent location which accounts for less than 40% of his time.

It's similar, in my opinion to someone who has a 3 year contract to do specific work for a client but only travels 1 or 2 days to site i.e. less than 40% of their time. It would still count as a temporary workplace regardless of the total length of the contract.

But if you take the 40% as a rolling factor the old site is not at temp one. It is a site he has been at 100% of time in last two years or does this rolling period not work like this? It is the same period we discussed when someone asked how long before you can go back to an old site.