24 month rule and multiple contracts with different jobs (same client)

[Foxy Stoat]

So what you're saying is that it's deliberate tax evasion but you should get away with it.

Wasn't saying that at all. Just there is a massive grey area around 'expectation', particularly as I now work for an entirely different department, doing a completely different job than when I first started. I left the client in February, I did not 'expect' to come back. But I was interviewed for, and got, a second job, and a new contract. So I think there is some degree of flexibility here.

[Foxy Stoat]

Routine investigations happen. It doesn't matter what you 'think'.

How likely it is to happen to you (or your colleagues) is a different question.

And as for your 'baloney' comment. Try reading the examples on the HMRC website.

And let's hope you don't plan to argue with them about travelling to different places in London.

But none of the examples apply to my situation, it is somewhat unique. The only real semi-constant is the location I travel to (which by the way, is not in London), and even then it was not a certainty I would becoming back. That location was my temporary workplace, I left it, got a new job and now this is once again my temporary location, on a brand new 12 month contract, with a subsidiary company.

[Foxy Stoat]

But regardless of which, I came to ask for advice, not to have people lecture me on something I didn't even know I was doing, because my umbrella company didn't say anything but kept processing my claims as normal.

The question is, what should I be doing, now??? For the best?

[malvolio]

But regardless of which, I came to ask for advice, not to have people lecture me on something I didn't even know I was doing, because my umbrella company didn't say anything but kept processing my claims as normal.

The question is, what should I be doing, now??? For the best?

Firstly, what umbrella company? This is personal taxation we're talking about, not corporate. It's your responsibility to declare your income correctly, nobody else's.

Secondly, just becuase you don't know or understand the rule doesn't make you right and everyone else wrong.

Thirdly, if you don't want answers, don't ask questions. Don't bitch if you don't like the answers, go look it up yourself.

Finally, going back to your OP, you've had contracts at the same location for potentially 27 months, whether you've actually donme that time yet or not. That kinda blows the 24 month barrier, doesn't it?

It's not fair, it's a rule that shouldn't apply to genuine contractors, but it does. Live with it.

[Foxy Stoat]

Firstly, what umbrella company? This is personal taxation we're talking about, not corporate. It's your responsibility to declare your income correctly, nobody else's.

Secondly, just becuase you don't know or understand the rule doesn't make you right and everyone else wrong.

Thirdly, if you don't want answers, don't ask questions. Don't bitch if you don't like the answers, go look it up yourself.

Finally, going back to your OP, you've had contracts at the same location for potentially 27 months, whether you've actually donme that time yet or not. That kinda blows the 24 month barrier, doesn't it?

It's not fair, it's a rule that shouldn't apply to genuine contractors, but it does. Live with it.

I'm a contractor with an umbrella company. Effectively, they are my employer. Every month I scan and email a copy of my rail ticket to them, and also add on my susbistence. They then check my claim, and approve it.

I pay them a hundred pound a month to look after me, if there is an issue with approving my claims, then they shouldn't be doing it. After all, that is what I pay them for.

It's the tone of some of your answers I don't like, like somehow I'm evil for not knowing some bullsh*t rule which my umbrella company is supposed to deal with, because they are effectively my employer and that's what I pay them for. It's not like I've stabbed anyone's granny now is it, so why make me out to be 'public enemy number one'?

Anyhow regardless the question still stands; what should I do NOW, for the best?

[Old Greg]

I'm a contractor with an umbrella company. Effectively, they are my employer. Every month I scan and email a copy of my rail ticket to them, and also add on my susbistence. They then check my claim, and approve it.

I pay them a hundred pound a month to look after me, if there is an issue with approving my claims, then they shouldn't be doing it. After all, that is what I pay them for.

It's the tone of some of your answers I don't like, like somehow I'm evil for not knowing some bullsh*t rule which my umbrella company is supposed to deal with, because they are effectively my employer and that's what I pay them for. It's not like I've stabbed anyone's granny now is it, so why make me out to be 'public enemy number one'?

Anyhow regardless the question still stands; what should I do NOW, for the best?

Declare it. Pay the BIK from the point at which you expected to be there 24 months. Anything else is tax evasion.

[eek]

I'm a contractor with an umbrella company. Effectively, they are my employer. Every month I scan and email a copy of my rail ticket to them, and also add on my susbistence. They then check my claim, and approve it.

I pay them a hundred pound a month to look after me, if there is an issue with approving my claims, then they shouldn't be doing it. After all, that is what I pay them for.

It's the tone of some of your answers I don't like, like somehow I'm evil for not knowing some bullsh*t rule which my umbrella company is supposed to deal with, because they are effectively my employer and that's what I pay them for. It's not like I've stabbed anyone's granny now is it, so why make me out to be 'public enemy number one'?

Anyhow regardless the question still stands; what should I do NOW, for the best?

That's not what you pay them for. You pay them to handle the invoicing of your end client and the processing of that invoice when paid into its consituent parts (VAT to HMRC, the expenses you legitimately claim to yourself, both parts of the NI on whatever is left to HMRC, the tax to HMRC and everything else to yourself).

They don't know the day to day details of your business. All they know is that you've claimed x in expenses (having asked appropriate questions and double-checked their advice) so they deduct that from your income, pay the appropriate tax and pay you the rest.

So the only thing you should do is declare the mistake and repay the tax you should have paid on the inappropriate expenses.

[Foxy Stoat]

Declare it. Pay the BIK from the point at which you expected to be there 24 months. Anything else is tax evasion.

I don't think it is 'tax evasion', if it was that simple, my business expenses could not have been approved. Besides which, there's no way my tax could be that high, it's already high enough without the extra £550 travel / food a month on top which I claim for. It can't all be from tax, that's not possible.

And how is the 24 months worked out anyway? Is that 24 FULL months? Does that take into account weeks I wasn't working for, not claiming for? This whole system is a complete mess.

And what if I just quit in a month? 'My' expectation was to only work up to 2 years anyway.

[Foxy Stoat]

So the only thing you should do is declare the mistake and repay the tax you should have paid on the inappropriate expenses.

Hang on, 'tax on the expenses'? So it's not the full amount then? So say, if I put through £550 a month, how much of that should have gone to HMRC?

And then how do I subsequently put through the 'un-taxable' part of the expense in later months?

[northernladuk]

Ignore all the other posters cause they are not giving you the answer you clearly want to hear. Forget all the correct advice they are giving you. Just go for it,fill your boots and go for it. The only advice you really need is not to bend down for the soap after you investigation....