The 24 Month Rule in a nutshell

[antuk]

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?

[Old Greg]

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.

[Lance]

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.

[malvolio]

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.

[FreeZey]

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%.

[adubya]

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

[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

[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%

[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?

[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!