24 Month Rule

[stek]

24 Month Rule

Switch to LLP, 24 month rule doesn't apply but research it first, I was told that when I was with an LLP, I didn't check.

[Brussels Slumdog]

Would this be legal

Your company pays the rent ie £1000 a month and the company charges you a daily rate based on the number of nights ie £600, which is deducted from your salary.
You cannot claim the £600 as you have exceeded the 24 months.

Your company deducts £1000 less £600 for tax

[ribble]

You got my view.. If you don't like it don't cry on public forums....

I have a great family, house, friends and end to end contracts for a good number of years. That makes me rich beyond my wildest dreams but thank you for your advice, I will take it in to consideration.

1. I didn't cry - I made a point.
2. My observation was about you replying to every single post.... So when you refer to your family and friends I presume you actually mean 'online associates'

[ribble]

If it's really a financial imposition you could close down your Ltd and open another. Providing the client and agency don't throw a tantrum, (do it at renewal time perhaps to avoid too much hassle) you can effectively "reset" the 24 month clock.

What impact that may have on other aspects of your business is another matter though. It would probably make it more difficult to argue that you're "in business on your own account" if you're not building brand loyalty and corpoate identity blah, blah, blah.

24 Month rule is personally based - so this would make diddly all difference.... Plus far to much hassel for the other income streams I have built up.

[Clare@InTouch]

Switch to LLP, 24 month rule doesn't apply but research it first, I was told that when I was with an LLP, I didn't check.

The usual permanent vs temporary workplace arguments still apply if you're self employed, so it would apply for an LLP.

There's no benefit in kind on a "company" car in an LLP though.

[ribble]

But your clients location is now your permanent place of work so claiming it as an office wouldn't help would it? You could also get in to other issues about using a residential let as a business premises. Does your letting contract not forbade it being used as a business property?

You misunderstood - I said proportion and use of home as office not rent per say.

[northernladuk]

You misunderstood - I said proportion and use of home as office not rent per say.

So that would be the £4 a week charge then?

have a look at this page..

Use of Home as an Office - What Can I Claim? | ContractorInfo

So where would you claim your 'office' is? London or Devon?

[Maslins]

It's needed for business purposes because I live in Devon and work out of London. Never there at weekends.

I think the logic is when you get to the stage you know you'll be working in London for >24 months, if the travel bothers you, you'd move closer to London.

It's not realistic to expect everyone to move home every 3 months when they get a new contract, so I guess someone at some point decided 24 months was the cut off.

Whilst I agree the rules can be a little complex to understand, I think the logic behind them is sound. It's your choice to live in Devon, you've been working in London long enough to know the travel is expensive, yet you choose not to move. Why should the taxpayer subsidise that choice?

[ribble]

So that would be the £4 a week charge then?

have a look at this page..

Use of Home as an Office - What Can I Claim? | ContractorInfo

So where would you claim your 'office' is? London or Devon?

London.... B*gger that link goes against what I was advised.

[ribble]

I think the logic is when you get to the stage you know you'll be working in London for >24 months, if the travel bothers you, you'd move closer to London.

It's not realistic to expect everyone to move home every 3 months when they get a new contract, so I guess someone at some point decided 24 months was the cut off.

Whilst I agree the rules can be a little complex to understand, I think the logic behind them is sound. It's your choice to live in Devon, you've been working in London long enough to know the travel is expensive, yet you choose not to move. Why should the taxpayer subsidise that choice?

No I think 24 months is sound. The crappy bit is London as a whole as a single workplace. I completely agree that it should apply if you are at a single client for more than two years. I've moved from a client in West London to Canary Wharf. That's just silly.