Moving from umbrella to ltd on renewal

[speling bee]

I meant NLUK really.

[northernladuk]

I meant NLUK really.

But if the cap fits....

[northernladuk]

Hi Spelling Bee

Just to give my 2p's worth.

Joe's time at Bank #1 was a permanent location because he had no other location for work i.e. had had to work at the bank under that employment. Now that he's gone contracting his permanent location is his home office and Bank #2 becomes a temporary location so he can start claiming travel expenses up until the point he expects to be at that same location for over 24 months which in this case appears to be for the first 6 months of contracting there.

One thing a lot of people forget it that for a location to be temporary there has to be another location that is the permanent location, if there isn't then by default the first location is a permanent one and it is for this reason that employees can't claim for ordinary commuting.

HTH

Martin
Contratax Ltd

But wouldn't he still fail the 40% rule? He has still been there over 40% of the time over a two year period regardless where his permanent place assumed to be?

[ContrataxLtd]

But wouldn't he still fail the 40% rule? He has still been there over 40% of the time over a two year period regardless where his permanent place assumed to be?

The 40% rule would only kick in once he's been there, or expects to be there over 24 months. Up until that point, the contract, in my opinion is at a temporary workplace.

Martin
Contratax Ltd