(Another) two year rule post

[Gaz_M]

My current contract has been extended until July next year (which takes me up to exactly 2 years). I've been told they want me for one extra year from then but that will be at another location (approx. 15 miles away). I contacted SJD & they said that was fine to continue to claim all travel expenses.

According to this, and other threads on the subject, that shouldn't be allowed.

I'm confused.

[Markerton]

My current contract has been extended until July next year (which takes me up to exactly 2 years). I've been told they want me for one extra year from then but that will be at another location (approx. 15 miles away). I contacted SJD & they said that was fine to continue to claim all travel expenses.

According to this, and other threads on the subject, that shouldn't be allowed.

I'm confused.

Unless I'm mistaken it's because you'll now be going to a different location.

[TheCyclingProgrammer]

My current contract has been extended until July next year (which takes me up to exactly 2 years). I've been told they want me for one extra year from then but that will be at another location (approx. 15 miles away). I contacted SJD & they said that was fine to continue to claim all travel expenses.

According to this, and other threads on the subject, that shouldn't be allowed.

I'm confused.

Because it's about location, not contract or client. Extension at new location means 24 month rule doesn't bite.

[Gaz_M]

Unless I'm mistaken it's because you'll now be going to a different location.

Because it's about location, not contract or client. Extension at new location means 24 month rule doesn't bite.

But people are saying London counts as the same location and that can easily be 15 miles apart.

[TykeMerc]

But people are saying London counts as the same location and that can easily be 15 miles apart.

True, but if that final 15 miles is on the end of a 100 mile trip the argument is that the trip is substantially the same, a local stop or two on the train or underground isn't that different that the clock gets re-set.

As an example people working in the financial district of the city or at multiple Canary Wharf clients should stop expensing travel as soon as their expectation is that they will cross 24 months at that general location.

[northernladuk]

My current contract has been extended until July next year (which takes me up to exactly 2 years). I've been told they want me for one extra year from then but that will be at another location (approx. 15 miles away). I contacted SJD & they said that was fine to continue to claim all travel expenses.

According to this, and other threads on the subject, that shouldn't be allowed.

I'm confused.

It's all about perception as there are no hard and fast rules. I would like to know more about the circumstances of the role but IMO 15 miles is a bit close for me to reset the clock personally. Devil is in the details though. If that 15 miles kept me in the same geographic location i.e both gigs were in Manchester then no I wouldn't. If one was in Manchester the other in Cheshire maybe I would think about it.

Accountants don't really care that much, they know some level of mileage will reset it and they have probably never seen it investigated but it's not their risk really.

[Gaz_M]

It's all about perception as there are no hard and fast rules. I would like to know more about the circumstances of the role but IMO 15 miles is a bit close for me to reset the clock personally. Devil is in the details though. If that 15 miles kept me in the same geographic location i.e both gigs were in Manchester then no I wouldn't. If one was in Manchester the other in Cheshire maybe I would think about it.

Accountants don't really care that much, they know some level of mileage will reset it and they have probably never seen it investigated but it's not their risk really.

It's Bradford to Leeds.

However, if/when I move to Leeds I could commute by train rather than by car but I'm guessing a travel expense is a travel expense and it's still all about location.

[TheCyclingProgrammer]

But people are saying London counts as the same location and that can easily be 15 miles apart.

Well you didn't say anything about what location your contracts were in.

Yes, London as a whole *can* be considered the same location but more context is needed. A commute from one side of London to the other could be significantly more expensive and costly than a journey locally on the other side of London. On the other hand, for somebody travelling from 2 hours away by train, the journey to London and the cost may not be broadly different wherever you are actually working in London.

[TheCyclingProgrammer]

It's Bradford to Leeds.

However, if/when I move to Leeds I could commute by train rather than by car but I'm guessing a travel expense is a travel expense and it's still all about location.

Personally, I'd see a journey from Bradford to Leeds as broadly the same journey, regardless of the precise location in Leeds, particularly if the journey cost is largely the same.

Ultimately, this is a matter of personal taxation as it affects whether any travel expenses you claim from YourCo are subject to tax/NI as a BIK or not. Its up to you to self-assess as both an employer (e.g. whether or not it needs to go on P11D) and as an employee/director on your self-assessment. Speak to your accountant and ask them their view.

Claim if you feel the journey is different enough and can argue your case if it ever came up in a compliance check with HMRC. There is no definitive answer.

[northernladuk]

Personally, I'd see a journey from Bradford to Leeds as broadly the same journey, regardless of the precise location in Leeds, particularly if the journey cost is largely the same.

Ultimately, this is a matter of personal taxation as it affects whether any travel expenses you claim from YourCo are subject to tax/NI as a BIK or not. Its up to you to self-assess as both an employer (e.g. whether or not it needs to go on P11D) and as an employee/director on your self-assessment. Speak to your accountant and ask them their view.

Claim if you feel the journey is different enough and can argue your case if it ever came up in a compliance check with HMRC. There is no definitive answer.

This ^

Doesn't help that I am from Bradford and that area is all the same to me so slightly skews the situation but the last line nails it for me.