Does mileage clock reset with new consultant but the same client?

[malvolio]

Sorry the vagueness, here are the clarifications.
Consultant - Agency
Mileage clock - Claiming Mileage expenses 24 months rule
Manager - Client Manager
Mileage expenses - Car mileage expenses
IR35 - Mine is a standard IR35 contract

If you had bothered to read the sticky at the top of this forum (that's this one...) which was written so we didn't have to keep answering the same dumb question every other week, you will see why the clock isn't going to be reset; from the point you knew you were over 24 months, you can no longer claim expenses.

[FatLazyContractor]

I've got to wonder why a client manager would keep a contractor that knows so little about his own affairs. I hope you put a little more effort in to your work for your client than you do running your own business.

Isn't that what the 'Technical' section meant for?

[Harish]

You mean, you are inside IR35 ?

Yes

[DannyF1966]

Sorry the vagueness, here are the clarifications.
Consultant - Agency
Mileage clock - Claiming Mileage expenses 24 months rule
Manager - Client Manager
Mileage expenses - Car mileage expenses
IR35 - Mine is a standard IR35 contract

Right, changing agency won't make any difference, if indeed you can do that at all. You're still working in the same place and still making the same journey to work. In fact, even if you get another contract in a similar location it might not make any difference, according to What is the 24 Month Rule? - Contractor Weekly, HMRC can “ignore a change of workplace if that change does not have any substantial effect on the employee's journey to work". (although I'm not sure what they mean by "substantial")

So basically if you're in any one location for more than 24 months, and in fact I believe that it's as soon as you know you'll be there for more than 24 months, you won't be able to claim travel expenses. And switching from driving to getting the train won't get around it either, because it's still travel expenses, just in a different format. You can still get your company to reimburse you for train tickets, but you won't be able to offset it against tax.

[Harish]

If you had bothered to read the sticky at the top of this forum (that's this one...) which was written so we didn't have to keep answering the same dumb question every other week, you will see why the clock isn't going to be reset; from the point you knew you were over 24 months, you can no longer claim expenses.

But I'm changing the agency so wouldn't that be treated as a new contract? My accountant says Yes but I'm not 100% sure, thats why posing the question.

[Harish]

Right, changing agency won't make any difference, if indeed you can do that at all. You're still working in the same place and still making the same journey to work. In fact, even if you get another contract in a similar location it might not make any difference, according to What is the 24 Month Rule? - Contractor Weekly, HMRC can “ignore a change of workplace if that change does not have any substantial effect on the employee's journey to work". (although I'm not sure what they mean by "substantial")

So basically if you're in any one location for more than 24 months, and in fact I believe that it's as soon as you know you'll be there for more than 24 months, you won't be able to claim travel expenses. And switching from driving to getting the train won't get around it either, because it's still travel expenses, just in a different format. You can still get your company to reimburse you for train tickets, but you won't be able to offset it against tax.

Thanks a lot, exactly the information I need.

[FatLazyContractor]

But I'm changing the agency so wouldn't that be treated as a new contract? My accountant says Yes but I'm not 100% sure, thats why posing the question.

Does change in agency also mean change in location of work?





EDIT - Glad you got it!

[DannyF1966]

Thanks a lot, exactly the information I need.

I'm still fairly new here myself, it may not be 100% correct! Although I'm sure someone will point out any mistakes in due course

[Harish]

Does change in agency also mean change in location of work?





EDIT - Glad you got it!

No, its the same client. The client manager only advised to me change the Agency so I was a bit confused. Anyways now things are clear and I dont want to go through that route.

[northernladuk]

But I'm changing the agency so wouldn't that be treated as a new contract? My accountant says Yes but I'm not 100% sure, thats why posing the question.

This is covered in the very first bullet point on the very first post. Try doing a bit of work for yourself hey...

PS.. Sack your accountant.. Now!!