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

[Foxy Stoat]

Hi there, I've got a bit of a strange situation and I wanted to run it past you guys to try and work out when my actual 'end' of the 24 month expenses rule is.

I'm with an umbrella company and I started working for a client from the start of November 2010. This was initially a 3 month contract, which got renewed once for another 6, and then another 6. After that it ended and I left the company. However there was another completely different role in a completely different department, under a different director, which I applied for, and was interviewed for. I got the job, and went back to the same client, albeit in a different department, about 4 weeks later. This can last for 12 months, although of course I could terminate it earlier if I wish, and indeed will do if there is any risk that I am in breach of HMRC.

Now my question is, where does this leave me with regard to the 24 month rule? As I didn't know I would definitively be coming back to the same site, has this now reset, or does the very first contract come into play, meaning my 24 months will run out this November? At the moment I still field my expenses as normal, and my umbrella company is approving them, but I have no idea if they are fully aware of the situation. Surely they would be checking all this, right?

Thanks.

[Sockpuppet]

You'll still be caught by the 24 month rule. So effectively you can't claim expenses from the moment you signed the 12 month contract.

[NotAllThere]

As soon as you know your contract will bring you over the 24 months limit, you're caught (ok, there's some stuff about averaging, to take into account 4 weeks off, but it won't make any difference in your case). You can't claim T&S.

[centurian]

Slam dunk caught by the 24 month rule

Surprised brolly didn't pick up on it, but then you are the one liable, not them - the gap has probably fooled their computer system, but make no mistake, this is well within the rule, even under a very liberal interpretation.

[cojak]

You are caught.

Although no one has mentioned that it has nothing to do with the client, it has everything to do with location.

You're in the same location so that's you stuffed.

[Segush]

That sounds like a pain. So there is no reset even if you take a break - 4 weeks?

In my case my contract does not specify a duration, it is defined as "until the end of the assignment" or something like that. Does that make things different?

The department I work for are relocating at the end of October to a location 100 miles away from where we are at the moment, assuming I will go with them I take it the clock starts again? I would have been with them for circa 7 months by then...

Regards

[malvolio]

That sounds like a pain. So there is no reset even if you take a break - 4 weeks?

In my case my contract does not specify a duration, it is defined as "until the end of the assignment" or something like that. Does that make things different?

The department I work for are relocating at the end of October to a location 100 miles away from where we are at the moment, assuming I will go with them I take it the clock starts again? I would have been with them for circa 7 months by then...

Regards

I've answered this one many times.... It's a rolling 24 month window. There are subtleties, but basically if you look back from the known end of your current engagement and you have been working more than 40% of your time at that location for over 24 months, you cannot claim travel and expenses (or you can from YourCo, but you have to pay the BIK n them as normal income).

Do a forum search on the 24 month rule, and set aside an evening to read it all.

And your contract will have a duration. I suggest you go read it properly; what else have you missed...?

[Segush]

My contract says:

Termination of Assignment: Until completion of assignment
Notice Period: 1 week

Assignment is defined as "period during which the Contractor is engages by Employment Business to render services to the Client"

I asked to have a duration written in my contract but I was told it would not help me in terms of IR35.

Will read about the 24 month rule as so far I haven't been too bothered (first time contracting)

Regards

[LisaContractorUmbrella]

My contract says:

Termination of Assignment: Until completion of assignment
Notice Period: 1 week

Assignment is defined as "period during which the Contractor is engages by Employment Business to render services to the Client"

I asked to have a duration written in my contract but I was told it would not help me in terms of IR35.

Will read about the 24 month rule as so far I haven't been too bothered (first time contracting)

Regards

I should duck now if I were you

[Segush]

Duck?