The 24 Month Rule in a nutshell

[malvolio]

Having studied this thread at length I thought I was fully clued up on the 24 month rule! Unfortunately my accountant has been unable to give me a straight answer on the 'awareness of exceeding 24 months' bit so I thought I'd get some opinions.

I've had an open ended 'from time to time' contract with Client A for the past 24 months which involved a 100 mile round trip so have obviously been claiming mileage. As my days worked were 50% of my total I was aware of the importance of not exceeding 24 months so haven't made myself available since July, without actually resigning from the contract, the intention being to find work somewhere closer. I have signed a contract with Client B but the work has been unexpectedly delayed until the New Year so am considering some days offered by Client A next week.

If I take the work I obviously wont claim mileage but it crossed my mind that it's difficult to prove when I was aware that I'd work past the 24 month point?

Am I jeopardising my previously paid expenses if I bust the 24 months due to the open ended nature of my contract with Client A?

The rule is based on when you "become aware", but as you say that is a bit nebulous (gosh...). However, since you never work without a signed contract and that contract will contain start and end dates, it's quite easy to point to a known or reasonably assumed termination date. And as I keep saying you work back from that point, not forward from today, and keep it under review. Once you are certain you will exceed the 24 month rule, whether it's 24 months at a set location or some combination of on-site and off-site working, then you stop claiming tax relief on expenses.

[NobbyClark]

Having studied this thread at length I thought I was fully clued up on the 24 month rule! Unfortunately my accountant has been unable to give me a straight answer on the 'awareness of exceeding 24 months' bit so I thought I'd get some opinions.

I've had an open ended 'from time to time' contract with Client A for the past 24 months which involved a 100 mile round trip so have obviously been claiming mileage. As my days worked were 50% of my total I was aware of the importance of not exceeding 24 months so haven't made myself available since July, without actually resigning from the contract, the intention being to find work somewhere closer. I have signed a contract with Client B but the work has been unexpectedly delayed until the New Year so am considering some days offered by Client A next week.

If I take the work I obviously wont claim mileage but it crossed my mind that it's difficult to prove when I was aware that I'd work past the 24 month point?

Am I jeopardising my previously paid expenses if I bust the 24 months due to the open ended nature of my contract with Client A?

[SteelyDan]

Pretty much. The 24 month rule hasn't changed.

There is some argument about London as the journey to get to various parts can vary quite a bit.

No it's not London, further north. Ta.

[ladymuck]

Using this thread as a reference, is this still the case (14.4 months), or have things changed?

I left location X end Dec 2017, and have the chance to go back there in September 2019, but with a different client; so same city but different role/client.

Is the clock reset & I'm OK to claim expenses again?

Pretty much. The 24 month rule hasn't changed.

There is some argument about London as the journey to get to various parts can vary quite a bit.

[SteelyDan]

The only way you can go back is to go to another contract at a significantly different location for 14.4 months* and then return.

Using this thread as a reference, is this still the case (14.4 months), or have things changed?

I left location X end Dec 2017, and have the chance to go back there in September 2019, but with a different client; so same city but different role/client.

Is the clock reset & I'm OK to claim expenses again?

[PerfectStorm]

To a person. It is all about BIKs...

Not only that, but it predates your time as a contractor and covers 'the area' the work is taking place in, not the client/office!

[northernladuk]

Why does the rule not apply? 2 days WFH means 3 in the office 3 days out of 5 is 60% in the office, thats quite a bit over 40%

So doesn't apply. You've hit 24 months and work over 60% so 40% doesn't apply. Just make sure you stop claiming at the last renewal that takes you over.

Pretty standard situation really surely?

[Parisno]

Since the rule doesn't apply, I suggest you do nothing

Why does the rule not apply? 2 days WFH means 3 in the office 3 days out of 5 is 60% in the office, thats quite a bit over 40%

[malvolio]

Sorry if this has already been answer earlier in the thread I only read a few pages in.

What's the advice after 24 months?

I do 2 day's WFH and 3 on client sites so I'd come in at exactly 40%.

Since the rule doesn't apply, I suggest you do nothing

[adubya]

I just sucked it up, but my subsistence costs are under £500/month.