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The 24 Month Rule in a nutshell

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  • FreeZey
    replied
    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?
    • Try to negotiate a higher rate to cover the non expensed travel, substance and accommodation costs?
    • Leave and find another contract at the same rate?
    • Accept the new costs?


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

    Leave a comment:


  • malvolio
    replied
    It's a good question, but it has an equally good answer. Work on the basis of time spent that directly leads to earned income - think of it in terms of hourly rather than day rate invoices. There is still an overhead of non-productive time for general admin and paperwork but that is not significant in terms of a working year so should be ignored.

    That therefore excludes commuting time (less, to be pedantic, any genuine work done on the train for example) but not time travelling to a different workplace. It also excludes any necessary rework and non-productive effort such as training or research.

    As with all such cases, the need is to be able to prove to HMRC that what you are claiming is proportionate and reasonable.

    Leave a comment:


  • Lance
    replied
    Originally posted by antuk View Post
    Can I ask a really dumb question - is it 40% of the working week (5 days) or the full week on the basis as a company owner you may work weekends as well?
    put it like this.... would you be willing to try and argue, in a tax tribunal, that you have worked a 7 day working week for the last 104 weeks?
    If the answer is no then you have your answer.

    Leave a comment:


  • Old Greg
    replied
    Originally posted by antuk View Post
    Can I ask a really dumb question - is it 40% of the working week (5 days) or the full week on the basis as a company owner you may work weekends as well?
    IIRC it is chargeable days. So if you work 3 days per week it would be adjusted. Happy to be corrected.

    Certainly in the case you describe, it is based on the 5 day week, not 7.

    Leave a comment:


  • antuk
    replied
    Can I ask a really dumb question - is it 40% of the working week (5 days) or the full week on the basis as a company owner you may work weekends as well?

    Leave a comment:


  • malvolio
    replied
    Originally posted by Kjohnson
    Good evening, my name is Kelly and I am studying my third year of a BA Honours Accountancy course. As part of my third year I need to produce a research dissertation on any subject, the subject I have chosen is IR35, heist the reason for posting on Contractor UK.
    I am hoping that a few nice contractors or freelancer can take a few moments to complete a questionnaire for me regarding IR35, any information given is completely anonymous and will only be used for my dissertation use.
    This as been approved by admin 😊
    Any questions please message me and thanks you for reading and taking part
    Kelly 😉
    https://docs.google.com/forms/d/e/1F...ULamA/viewform
    Just a little curious about why the 24 month rule is relevant...?

    Leave a comment:


  • MidlandGig
    replied
    Same client/location but the contractor is relocated

    Hi,

    Need some guidance from the experts about this 24 months rule for claiming expenses, I've been on a contract since last 20 months at same contract and commuting/claiming for 15 miles journey to the client. But recently I've moved away (relocated) from the same client which made my journey to be 125 miles (one way) and accommodation expenses to pay.

    Got the extension of the contract for another 6 months, but i'm not sure whether i can claim the mileages and accommodation (for 4 days near client)

    Thanks for looking.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by the00 View Post
    At the moment I am travelling every week to a client site in the EU. I don't expect it at the moment, but what if this situation extended past 24 months?

    My business can claim travelling expenses from the client. I doubt there is any limit on that.
    I also doubt the client will pay for your personal travel just because you've hit a tax threshold.

    Leave a comment:


  • Lance
    replied
    Originally posted by the00 View Post
    At the moment I am travelling every week to a client site in the EU. I don't expect it at the moment, but what if this situation extended past 24 months?

    My business can claim travelling expenses from the client. I doubt there is any limit on that.
    your business can claim what it likes from your client, for as long as it likes. What you can claim personally from your business is what the 24-month rule is all about.

    You are more complex though as you may have tax liabilities in your client's country.
    I think the 24-month rule still counts, in as much as if your tax liability is all UK based then the rule still stands.

    Leave a comment:


  • the00
    replied
    24 month rule if working abroad

    At the moment I am travelling every week to a client site in the EU. I don't expect it at the moment, but what if this situation extended past 24 months?

    My business can claim travelling expenses from the client. I doubt there is any limit on that.

    Leave a comment:

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