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The 24 Month Rule in a nutshell

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    The 24 Month Rule in a nutshell

    How many more times....

    a) It's about the journey, not the client and not why you are there

    b) Go to the known (or anticipated) end date of your current gig.

    c) Count back 24 months by the calendar.

    d) If between those two dates you have spent less than 40% of your time at that location, the 24 month rule doesn't apply.

    e) Reassess it weekly in case it changes to over 40%. As soon as it does the 24 month rules will apply.
    Blog? What blog...?

    #2
    The 24-month rule has nothing to do with your company. And it has nothing to do with contracting or permanent employment.

    It has EVERYTHING to do with location.

    If you have been there 24 months and spent over 40% of your time there (and 1 day a week WFH still makes it over 40%), then you will not be able to claim once you know that your contract will take you over 24 months.

    (See Mal above if you've spent less than 40%.)

    And the location can mean anywhere in the City of London (or close to it) or similar.

    I would say that 50 miles and you can argue it but I've heard people being challenged for working along the M4 corridor between Bristol, Swindon and London.

    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.

    I would only feel safe if I moved from London to Manchester, Leeds, Birmingham, or Bristol.

    *Acountants argue about the duration. Some say 6 months, some say the the full 14.4. Take your pick depending on your appetite for risk...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      And a shed load of links to support the above.

      PCG quick summary with further link for members

      https://www.pcg.org.uk/travelling-ex...-24-month-rule

      Many links of the HMRC website which will probably lead to more as there is a lot of documentation and it can be a bit confusing in some situations hence the endless discussions but here is the HMRC link

      EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule

      A search showing all the results of posts regarding 24 month rule on ContractorUK. Many of these deal with peoples situations rather than theory so something might help here. Be aware of the GIGO factor though.

      https://www.google.co.uk/search?q=24...ntractoruk.com

      and of course.. Good old Google...

      https://www.google.co.uk/search?q=24...=24+month+rule
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by cojak View Post
        The 24-month rule has nothing to do with your company. And it has nothing to do with contracting or permanent employment.

        It has EVERYTHING to do with location.

        If you have been there 24 months and spent over 40% of your time there (and 1 day a week WFH still makes it over 40%), then you will not be able to claim once you know that your contract will take you over 24 months.

        (See Mal above if you've spent less than 40%.)

        And the location can mean anywhere in the City of London (or close to it) or similar.

        I would say that 50 miles and you can argue it but I've heard people being challenged for working along the M4 corridor between Bristol, Swindon and London.

        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.

        I would only feel safe if I moved from London to Manchester, Leeds, Birmingham, or Bristol.

        *Acountants argue about the duration. Some say 6 months, some say the the full 14.4. Take your pick depending on your appetite for risk...
        Appetite to risk is a factor. I'm prepared to defend myself over a change from a 100 mile journey to N London to a 100 mile journey to S London, which necessitated a completely different journey and resulted in a significantly lower journey cost.

        2016 update courtesy of eek
        Limited company Directors who are working inside IR35 can no longer claim for travel and subsistence.
        April 2016 | Changes to Travel and Subsistence Expenses
        Last edited by Old Greg; 12 May 2016, 18:39.

        Comment


          #5
          Originally posted by cojak View Post
          *Acountants argue about the duration. Some say 6 months, some say the the full 14.4. Take your pick depending on your appetite for risk...
          Some clarity on the 14.4 month break in attendance…

          The amount of time that must elapse before returning to the same site is entirely dependent on your circumstances – if you use the steps outlined by Malvolio at the point that you are going to return to a site then you should know whether you can make a claim.

          The 14.4 months that has been quoted is the time that is necessary for the clock to reset if you have been at a single location for the entire 24 month period – if you spend 24 months at one site, 14.4 months will need to elapse at a different site (i.e. 60% of 24 months) until 40% of your time (out of the previous 24 months) was at the original site (9.6 months).

          If the first claim is less than 24 months, or if you don’t expect the second claim for visiting the site to be 24 months then the 14.4 month time frame will be different.

          Hope this helps!
          Craig

          Comment


            #6
            Can someone just knock up a spreadsheet to do the calculation for me?
            Originally posted by MaryPoppins
            I hadn't really understood this 'pwned' expression until I read DirtyDog's post.

            Comment


              #7
              Doesn't the 24 rule come in when you know you are going to be in a location for 24 months, e.g. If after 22 months you get a 3 month extension, it starts at the 22 month stage?

              Comment


                #8
                Originally posted by SussexSeagull View Post
                Doesn't the 24 rule come in when you know you are going to be in a location for 24 months, e.g. If after 22 months you get a 3 month extension, it starts at the 22 month stage?
                That is correct - it is entirely based on your expectation.

                Comment


                  #9
                  Originally posted by SussexSeagull View Post
                  Doesn't the 24 rule come in when you know you are going to be in a location for 24 months, e.g. If after 22 months you get a 3 month extension, it starts at the 22 month stage?
                  Yes

                  Comment


                    #10
                    Originally posted by SussexSeagull View Post
                    Doesn't the 24 rule come in when you know you are going to be in a location for 24 months, e.g. If after 22 months you get a 3 month extension, it starts at the 22 month stage?
                    Yes - that would be point (b) in the original post.
                    Originally posted by MaryPoppins
                    I hadn't really understood this 'pwned' expression until I read DirtyDog's post.

                    Comment

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