(Another) two year rule post

[Markerton]

Hello everyone,

I've had a search but couldn't find a reply to my issue, but I apologise if it has been answered elsewhere.


Being fairly new to contracting, I figured I'd come and speak to you lot as my Google'ing isn't helping me find a straight answer.


My assignment started in August 2013. In April 2014, I was offered a separate post and got my title officially changed with my Umbrella organisation in July 2014. Since then, they have renewed my contract until 31st December 2015.

When I accepted the new assignment via my Umbrella organisation I got a phone call from then stating my assignment will take me past 19th August 2015, thus crossing the 'two year rule', which I knew was going to happen as the contract date was so long.

In short:
Job 1: August 2013 - July 2014
Job 2: July 2014 - 31st December 2014

Job 2 (extended): 1st January 2015 - 31st December 2015


An ex-colleague of mine said that the two year rule gets reset if you accept a new position, but I'm confident it's all based on geographic location.


Could someone please straighten this out for me and let me know where I stand? I'm set to lost a lot of money (it's not a high-paying contract) in additional tax.


Thank you in advance.

Mark

[cojak]

Yes, you are correct, it is geographical.

Expenses stop as soon as you know you will pass the 24 month rule.

See here for more details: http://forums.contractoruk.com/accou...-nutshell.html

[Markerton]

Yes, you are correct, it is geographical.

Expenses stop as soon as you know you will pass the 24 month rule.

I'll find the HMRC ruling later (or maybe someone else can?).

Okay, so this applies even with an entirely different position?

I thought so.

[jmo21]

An ex-colleague of mine said that the two year rule gets reset if you accept a new position, but I'm confident it's all based on geographic location.

Before one of the usual lot come on and ask this chap "What does your accountant say?"..... I also have an ex-colleague, great developer, long time contractor, who all says the same thing based on what his accountant told him.

[BolshieBastard]

Before one of the usual lot come on and ask this chap "What does your accountant say?"..... I also have an ex-colleague, great developer, long time contractor, who all says the same thing based on what his accountant told him.

I dont believe any qualified accountant would say such a thing.

[northernladuk]

Can't have searched very hard.....

[TheCyclingProgrammer]

Your eye colleague is wrong. If job 1 and 2 are in the same location, then you have to stop claiming expenses now I'm afraid.

[scope]

Get the contract changed to July 2015.. then if things work out you'll get another one closer to the time.. A contract is only as long as the notice period anyway.

[SimonMac]

12 month extension is rare, are you sure its not a FTC?

If it is a genuine contract why not accept a 6 month extension and claim for that period before stopping when you hit 24 months

[jmo21]

I dont believe any qualified accountant would say such a thing.

Believe what you like.