The 24 Month Rule in a nutshell

[northernladuk]

Many thanks to both of you for replying.

I still spend over 40% of my time going to the same location that I've been going to for 2 years. So as you say, I can't claim the £7,400 as expenses, (which would have saved around £1500 in taxation..)

I'd need to get down to 2 day on site (3 day working from my office). Only 2 days on client site that would save £4,440 travel expenses.. therefore only £2960 on travel, of which £592 would be saved in taxation.

.. so best option is to work on my site, rather than client!

Best option is to do what your client is comfortable with. Unless your absolutely sure it won't have any detrimental effect on your gig I wouldn't let the tax situation dictate how I deliver.

[richy]

Best option is to do what your client is comfortable with. Unless your absolutely sure it won't have any detrimental effect on your gig I wouldn't let the tax situation dictate how I deliver.

Good point. My client hasn't ever agreed to working on my site, rather than their's. At least my other client (dealt with by employee) does allow home-working for him.

[SlipTheJab]

Don't you just love HR

Current client I'm direct with offered a 6 month extension which would take me over the 24 months, agreed to 3 months with the dev mgr to finish on the 30th June 2015 = I can claim expenses for another 3 months before I have to stop. Eventually extension paperwork comes through at the 11th hour, the 30th is a Tuesday so HR have extended the end date to the 3rd July 2015 as it's a Friday and it makes their lives easier

[sojan]

Working from home and occassional travel to other locations

Will the below conditions taken into account for 24 month rule?
1. WFH be considered as another location?
2. Occasional Travel to other locations be taken into account ?
3. Holidays be taken into account ?

[malvolio]

Current client I'm direct with offered a 6 month extension which would take me over the 24 months, agreed to 3 months with the dev mgr to finish on the 30th June 2015 = I can claim expenses for another 3 months before I have to stop. Eventually extension paperwork comes through at the 11th hour, the 30th is a Tuesday so HR have extended the end date to the 3rd July 2015 as it's a Friday and it makes their lives easier

Actually you already have an expectation that the work will extend over the 24 month limit, so you should stop claiming now. Faffing around with artificial end dates doesn't work.

[malvolio]

Will the below conditions taken into account for 24 month rule?
1. WFH be considered as another location?

Yes, it is your permanent workplace, if you are running a limited. I leave you to work out why that's significant.

2. Occasional Travel to other locations be taken into account ?

Yes. I leave you to work out why but the words "bleedin'" and "obvious" come to mind.

3. Holidays be taken into account ?

What are holidays...? Why do you think they are relevant...?

Look, I gave a concise and usable summary of the rules at the start of this whole thread so we don't have to keep answering questions about how and when it applies. Try reading it properly. Then apply it to your circumstances.

[SlipTheJab]

Actually you already have an expectation that the work will extend over the 24 month limit, so you should stop claiming now. Faffing around with artificial end dates doesn't work.

My next extension has now been sorted and I am contracted up to the day before the 24 month rule kicks in. Expectations are pie in the sky surely and it's the contract in place that matters. At the end of my next extension the client may or may not offer another one and I may or may not accept it. So can't see how I am 'faffing round with end dates'? In fact I quite fancy a change of scene and may well refuse a further extension, well that my expectation as of today :-)

[ASB]

Expectations are relevant because that is how the legislation is framed.

now if you plan to refuse the next extension because it means no travel can be claimed fine. If not then you shouldnt be claiming now.

in practical terms you are right. The situation contracturally is a strong pointer. But expectation and intent are what matter in law. Judging those is difficult and a different question.

[sojan]

Yes, it is your permanent workplace, if you are running a limited. I leave you to work out why that's significant.

Yes. I leave you to work out why but the words "bleedin'" and "obvious" come to mind.

What are holidays...? Why do you think they are relevant...?

Look, I gave a concise and usable summary of the rules at the start of this whole thread so we don't have to keep answering questions about how and when it applies. Try reading it properly. Then apply it to your circumstances.

Thanks for your "valuable" input and polite gestures !! .The "true" and "concise" summary is not explaining any of the above questions if the contract doesn't specify a location. Hence i did ask specific questions of how you define a "work place" if working from home, visiting clients and not going to work-place (like holidays) will constitute working at a single location?

[malvolio]

Thanks for your "valuable" input and polite gestures !! .The "true" and "concise" summary is not explaining any of the above questions if the contract doesn't specify a location. Hence i did ask specific questions of how you define a "work place" if working from home, visiting clients and not going to work-place (like holidays) will constitute working at a single location?

OK, so go do some research. For example:

1. It is only a nutshell explanation, the detail on edge cases is in the rest of this thread or in the various first timer guides listed over there ---> Of even Google it, you will get plenty of advice.

2. Start with understanding what the rule is trying to achieve. Then you will see the difference between a permanent and a temporary workplace and why it is significant. Hint: home is normally your permanent workplace, as I suggested earlier (perhaps a bit too subtly...?)

3. Time is finite. Holidays don't exist. Attendance at the temporary location(s) is what matters. If you're not working, you're not there, are you?

If you are a contractor, that's your job and it's up to you to understand it as best you can. Understanding expenses is a pretty key element of it. WE don't mind answering good questions, basic ones tend to irritate - me, especially, which is why I did the original post - and perhaps ask yourself if you don't really know this area, what else don't you know that you should?