24 Month Rule

[ASB]

Incurred by whom, though? That is the point. If YourCO pays for the travel and accommodation directly and passes this on to the client then fine, obviously. This thread started off talking about "avoiding" the tax on personal expenses reclaimed from YourCO. Different thing entirely.

That is a fair comment. But is there not a wider picture?

It becomes irrelevant to you, and the contracting community in general. For example, my company will pay my travel exes indefinately. But after 2 years I personally cannot get a tax reclaim. I am still incurring the exes, but in effect get extra salary to cover most of them.

The op would appear to have negotiated himslef into this position.ii

[Podgy]

I've just exhausted the 24 month rule by working for the same client over 2yrs and rented temporary accommodation for the duration.

I now will continue at the same site/client but for only 2 days pw and will be living back to my main residence some 150 miles away, so will stay just 1 night pw in hotel.

As my journey to my 'temporary' workplace has substantially changed - will this reset the 24month clock?

[malvolio]

I've just exhausted the 24 month rule by working for the same client over 2yrs and rented temporary accommodation for the duration.

I now will continue at the same site/client but for only 2 days pw and will be living back to my main residence some 150 miles away, so will stay just 1 night pw in hotel.

As my journey to my 'temporary' workplace has substantially changed - will this reset the 24month clock?

Nope.

[TheCyclingProgrammer]

I've just exhausted the 24 month rule by working for the same client over 2yrs and rented temporary accommodation for the duration.

I now will continue at the same site/client but for only 2 days pw and will be living back to my main residence some 150 miles away, so will stay just 1 night pw in hotel.

As my journey to my 'temporary' workplace has substantially changed - will this reset the 24month clock?

How has your journey changed? You're just there less time.

[northernladuk]

I've just exhausted the 24 month rule by working for the same client over 2yrs and rented temporary accommodation for the duration.

I now will continue at the same site/client but for only 2 days pw and will be living back to my main residence some 150 miles away, so will stay just 1 night pw in hotel.

As my journey to my 'temporary' workplace has substantially changed - will this reset the 24month clock?

Technically you should have exhausted the 24 month rule BEFORE you were there 2 years. It should have been when you knew you were going to be there so probably before the extension that took you over 2 years.

For your current situation you want to read up on the 40% rule as well.

[Andrew@Wisteria]

Nope.

Agree, caught by 24 month rules.

Per EIM32080

A workplace is a temporary workplace if an employee goes there only to perform a task of limited duration or for a temporary purpose. So even where an employee attends a workplace regularly, it will be a temporary workplace and so not a permanent workplace, if the employee attends for the purpose of performing a task of limited duration or other temporary purpose.

[ASB]

I've just exhausted the 24 month rule by working for the same client over 2yrs and rented temporary accommodation for the duration.

I now will continue at the same site/client but for only 2 days pw and will be living back to my main residence some 150 miles away, so will stay just 1 night pw in hotel.

As my journey to my 'temporary' workplace has substantially changed - will this reset the 24month clock?

I would not dispute the general prognosis of no. But there is a possibility that if you are doing substantive work from other locations it might just be covered under the 40% ruling. Unlikely, but depending upon the overall circs of your business not impossible.

[ASB]

Technically you should have exhausted the 24 month rule BEFORE you were there 2 years. It should have been when you knew you were going to be there so probably before the extension that took you over 2 years.

For your current situation you want to read up on the 40% rule as well.

Missed the last sentence before I responded. It is a possibility.

[malvolio]

Missed the last sentence before I responded. It is a possibility.

Nope (he says again). IMVHO.


Same journey, same location, different frequency perhaps. But other engagements don't apply; this is no longer a temporary workplace. The 40% rule applies to this "journey" for the 24 months preceding the anticipated end of the contract.

[cojak]

24 Month Rule

As 99% of the other posters said, it doesn't matter a flying fart what your new arrangement is - if you were staying over 5 days a week previously when you discovered your contract extension will take you over 24 months you will NOT be able to claim expenses for that LOCATION. The only way you can claim again is by working at another location for 14.4 months* before returning.

For example, I was unable to claim expenses for the last 6 months of my contract in London. I left in March 2013 and so I will not be able to take another contract there until June 2014.

It's not a difficult rule to understand, only to accept.

(*Some accountants say 6 months, some say 9 months but this is playing with the 40% ruling. But 14.4 months is the straight calculation for working 5 days a week for 2 years.)