24 Month Rule

[northernladuk]

You adding 1 and 1 and coming up with 3....

I work 16 hour days.... 8 on client site.... 8 on my company projects....

Well you are hardly flowering us with information so we can help you are you?

[Craig at Nixon Williams]

The 24 month rule is quite straightforward insofar as you are either caught by it or you aren’t - if you have the expectation to remain at a site for 24 months then it is not considered a temporary workplace by HMRC. You cannot get around it this by calling your London accommodation an office, though as other posters have pointed out, if you do use part of the flat, or even your own home to carry out business admin or elements of your contract then you can claim £4 per week.

Hope this helps!
Craig

[LisaContractorUmbrella]

Isn't it an unfair to the people that live so far away from London, that London becomes a permanent work place?

I've just recalculated my accounts on not taking expenses as I have gone over two years in Jan 2013.

So now paying all my expenses via DLA then dividends.

Its a bit of a b*tch as I have about £1500 expenses a month and now have to pay higher rate on them. I have a flat in London which is purely for business reasons - but have now been advised that as I sleep there it has duality of use.

No specific questions as such just wondered does anybody else have any views/experiences on this?

Rib

The 24 month rule is what it is. If you work for more than 24 months, or know that you will work for more than 24 months, at the same site or at a location that is not significantly different from the previous location, you will be caught by it. It's not 'unfair', it's just the rules.

[ribble]

Looks like potentially I'm going to be able to renegotiate my contract to have my expenses reimbursed. So I guess this would make it a non issue.... Haven't read anywhere that suggests this would be an issue....

[northernladuk]

Looks like potentially I'm going to be able to renegotiate my contract to have my expenses reimbursed. So I guess this would make it a non issue.... Haven't read anywhere that suggests this would be an issue....

Personally I wouldn't approach it like that. Your companies tax issues and costs are your concern, not your clients/agents. To go in and start complaining about the rule and your tax issues to your client/agent looks highly unprofessional IMO. Go in and tell them you would like your rate increasing and when they ask why advise them your operating costs have gone up making the current rate untenable. The actual details of the situation are not their concern... Have a number in your head that you want and negotiate down to that and if you don't get them be prepared to walk. If you are with an agent they will smell a bluff or half hearted attempt a mile off and take you over a barrel. If they think you are not prepared to walk you will not get it.

but that is my opinion.

[ribble]

Personally I wouldn't approach it like that. Your companies tax issues and costs are your concern, not your clients/agents. To go in and start complaining about the rule and your tax issues to your client/agent looks highly unprofessional IMO. Go in and tell them you would like your rate increasing and when they ask why advise them your operating costs have gone up making the current rate untenable. The actual details of the situation are not their concern... Have a number in your head that you want and negotiate down to that and if you don't get them be prepared to walk. If you are with an agent they will smell a bluff or half hearted attempt a mile off and take you over a barrel. If they think you are not prepared to walk you will not get it.

but that is my opinion.

Really? Why the misguided higher moral ground reply? I think that is uncalled for. I didn't even mention anything about my relationship with my client. It seems as if your personal opinion is somewhat limited.

Truth be told I had a face to face negotiation with my client who I trust on the subject and they agreed to work with me as they value my work and want to retain my services. No different on their part to working with a big consultancy.

[northernladuk]

Really? Why the misguided higher moral ground reply? I think that is uncalled for. I didn't even mention anything about my relationship with my client. It seems as if your personal opinion is somewhat limited.

Man you are a proper little prick aren't you. All you have done is have a go at me in this thread despite me pointing out, and giving you supporting evidence that the advice you have has been given is wrong. I really don't need your thanks, I do this for me but your attitude just stinks. It isn't a higher moral ground reply... it is a good business sense reply. It is very simple, your business's tax affairs are nothing to do with your client. Go in an negotiate but don't use your tax affairs as evidence.

Truth be told I had a face to face negotiation with my client who I trust on the subject and they agreed to work with me as they value my work and want to retain my services. No different on their part to working with a big consultancy.

But a big consultancy doesn't come to the table with price increases moaning about their tax going up and their inability to run their business properly. A point I just made yet you feel the need to have a go. I was just pointing out, which we have done many times to people that could have potentially gone in and done the same thing, that telling clients you want a rise because you don't get tax relief on your expenses is just shoddy.

You really need to re-think your attitude towards people that have actually provided you with some valuable answers.

And before you start crying about it being my opinion... welcome to being the 4th worst poster on the boards in one thread....

[Jubber]

The 24 month rule is what it is. If you work for more than 24 months, or know that you will work for more than 24 months, at the same site or at a location that is not significantly different from the previous location, you will be caught by it. It's not 'unfair', it's just the rules.

Never had to worry about this, but if I got a new gig, for a different client in a different building in a different street, but the same city, sure as hell I'd claim. Argue hard as well if an inspector didn't allow it.

[ribble]

Man you are a proper little prick aren't you. All you have done is have a go at me in this thread despite me pointing out, and giving you supporting evidence that the advice you have has been given is wrong. I really don't need your thanks, I do this for me but your attitude just stinks. It isn't a higher moral ground reply... it is a good business sense reply. It is very simple, your business's tax affairs are nothing to do with your client. Go in an negotiate but don't use your tax affairs as evidence.



But a big consultancy doesn't come to the table with price increases moaning about their tax going up and their inability to run their business properly. A point I just made yet you feel the need to have a go. I was just pointing out, which we have done many times to people that could have potentially gone in and done the same thing, that telling clients you want a rise because you don't get tax relief on your expenses is just shoddy.

You really need to re-think your attitude towards people that have actually provided you with some valuable answers.

And before you start crying about it being my opinion... welcome to being the 4th worst poster on the boards in one thread....

You jump to conclusions based on purely your own experience and perception. You also seek comfort in fact you are providing advice in quantity and not quality... And your opening comment is just a prime example of true professionalism.

Thanks for your help anyhow.

[SueEllen]

Never had to worry about this, but if I got a new gig, for a different client in a different building in a different street, but the same city, sure as hell I'd claim. Argue hard as well if an inspector didn't allow it.

The rules aren't black and white.

A city may not be the same location or it could be.

For example someone living in London going to client sites in different parts of London over a 3 year period could easily be exempt from the 24 month rule but someone who lives in Scotland going to the same client sites won't be.