The 24 Month Rule in a nutshell

[LisaContractorUmbrella]

Sorry for jumping on this old thread, but does anyone know how the 24 month rule would work in my situation:

a) Current and previous contracts with client don't specify a workplace
b) Depending on what project I'm working on, and manpower requirements, I could be working from any of four or five offices around the country.
c) Last 18 months has "Mainly" been in Office A (occasional stints for a few days at offices B-E)
d) For expense purposes I've just been claiming travel to and from Office A (since mileages average out).
e) Now my fingers are in more of my clients pies, I'm working for weeks at a time at offices B-E (but also A).
f) Now aware contract with this client extends a further 6 months (so 24 month rule applies).

If I now work from Office A for a day, am I caught by the 40% rule? As to my mind, all of Offices A-E are temporary workplaces, in so much as I don't know where I'll be from one week to the next, but on my expenses it looks like I've been at Office A all of the time.

If, over a 24 month period, you spend more than 40% of your time at client site A then the 24 month rule will apply

[rl4engc]

Sorry for jumping on this old thread, but does anyone know how the 24 month rule would work in my situation:

a) Current and previous contracts with client don't specify a workplace
b) Depending on what project I'm working on, and manpower requirements, I could be working from any of four or five offices around the country.
c) Last 18 months has "Mainly" been in Office A (occasional stints for a few days at offices B-E)
d) For expense purposes I've just been claiming travel to and from Office A (since mileages average out).
e) Now my fingers are in more of my clients pies, I'm working for weeks at a time at offices B-E (but also A).
f) Now aware contract with this client extends a further 6 months (so 24 month rule applies).

If I now work from Office A for a day, am I caught by the 40% rule? As to my mind, all of Offices A-E are temporary workplaces, in so much as I don't know where I'll be from one week to the next, but on my expenses it looks like I've been at Office A all of the time.

[BoredBloke]

Which is?

Excel Access VBA

[kal]

Actually there isn't a great deal of work around Manchester and Leeds in my skillset. That's the problem.

Which is?

[BoredBloke]

Actually there isn't a great deal of work around Manchester and Leeds in my skillset. That's the problem.

[malvolio]

The problem is that I can't put my rate up to compensate as it's already high to pay for my commute and expenses. Plus all the money if have to pay out would batter my tax allowences as it would have to be paid from my money and not company money, meaning I'd have am extortionate tax bill. Aberdeen and other cities are not as easy to get to as London is. Public transport is well setup for getting people between Manchester and London. Manchester and aberdeen not so.

Gosh. Hadn't thought of that...

You're wrong, incidentally, but no matter. Plenty of work around Manchester and Leeds though. Of course, the other way to avoid paying too much tax is not to earn any money at all.

[BoredBloke]

The problem is that I can't put my rate up to compensate as it's already high to pay for my commute and expenses. Plus all the money if have to pay out would batter my tax allowences as it would have to be paid from my money and not company money, meaning I'd have am extortionate tax bill. Aberdeen and other cities are not as easy to get to as London is. Public transport is well setup for getting people between Manchester and London. Manchester and aberdeen not so.

[malvolio]

I agree with the 24 month rule on one respct, in that there should be a cut off to stop people claiming for the same client/location for years on end. However, the problem I now face, after almost 2 years down at Canary Wharf, I have to exclude the biggest jobs market out of my job search - without the ability to offset my expenses then its not worth my while working in London. It hardly encourages you to get off your arse and find work when you get no tax relief on the expense of doing the job, simply because you happen to be in London again!

What's he problem? Put your rate up to compensate. Or get a job in Aberdeen for 20 months.

[BoredBloke]

I agree with the 24 month rule on one respct, in that there should be a cut off to stop people claiming for the same client/location for years on end. However, the problem I now face, after almost 2 years down at Canary Wharf, I have to exclude the biggest jobs market out of my job search - without the ability to offset my expenses then its not worth my while working in London. It hardly encourages you to get off your arse and find work when you get no tax relief on the expense of doing the job, simply because you happen to be in London again!

[DirtyDog]

A contact of mine has been claiming travel for same gig for four years because he 'wants to'.

Well, that's one attitude to risk