Contracts longer than 2 years, tax etc

[PandaCat]

Hi Everyone! My first post.
I've been a contract programmer working form home for many years so I feel I should know something about contracting. I'm hoping for a short answer to a question I'm hoping will be relevant to me: My current contract started 2 years ago in July with current end date of end of June (2 years minus a couple of days). I'm working by the usual set up, of my own Ltd company and an agent 'between' me and the company I'm 'working' for. If I am offered another contract extension (please) will my tax, NI etc. liability change when I've worked in the same contract for more than 2 years?
I ask as I have vague memories of an agent telling me, a couple of years ago, if I took a contract with company xxx if they wanted to keep me for more than 2 years my contract would end at 2 years and I would have to take one (?) month off and return on a new contract. I'm not sure if that was for tax purposes or to prevent me being entitled to sick pay etc. which I fully understand is not in the company's interest and why they use contractors.

In short: does anything change to my disadvantage after a certain period of time in one contract or could I stay (subject to any new things the government bring in) for the next 10 years paying tax and NI the same as I do now?

Thanks

[tarbera]

Short answer

You can't claim travel expenses after 2 years (but you work from your basement anyhoo)

Nothing else changes, client might have a 2 year contractor rule that chucks you out after that amount of time

[northernladuk]

Read the newbies guides on the right hand side. 24 month rule becomes an issue as Tarbey says but also read and understand IR35.

[WordIsBond]

HMRC will probably tend to assume you are inside IR35 if you are in the same contract too long. Case law isn't on their side but I'd guess if investigated they might push you harder than they might the next guy.

Too long in the same contract could mean your contacts get stale and make it harder to get contracts later.

All that said, if the money's good and you like the work, keep invoicing.

[PurpleGorilla]

I’m working with folk who have been ‘contracting’ at the same client for five+ years.

[tarbera]

HMRC will probably tend to assume you are inside IR35 if you are in the same contract too long. Case law isn't on their side but I'd guess if investigated they might push you harder than they might the next guy.

.

Sorry this is just wrong

[northernladuk]

Sorry this is just wrong

Which bit?

I can see why length of time 'can' be a factor in IR35 cases. A vast majority of people I know that are 5 years in to a gig are so part and parcel it's not true.

HMRC do see length as an issue as it's specifically mentioned in the notes from the recent appeal win.

Length of engagement

61. HMRC do not ascribe any particular significance to this factor save that longer contracts tend to indicate employment and this contract was open ended.

[malvolio]

Which bit?

I can see why length of time 'can' be a factor in IR35 cases. A vast majority of people I know that are 5 years in to a gig are so part and parcel it's not true.

HMRC do see length as an issue as it's specifically mentioned in the notes from the recent appeal win.

But only in the context that the worker has allowed themselves to be allocated work not in their original contract schedule, thus moving them from being a supplier to being someone who can be told what to work on. D&C write large.

You would think, after 18 years, people would begin to understand this kind of detail, wouldn't you...

[PandaCat]

Thanks guys! Really helpful replies
*Fingers crossed* I get to stay longer. I don't think I could ever claim for my commute from Bedroom via Bathroom and Kitchen to Study even with all the hold ups in between. So that's not going to be an issue.

I shall enjoy reading the other threads on this forum and picking up lots of tips!
Thanks!

[psychocandy]

Pandacat - Not being funny you've been contracting two years (at least) and haven't found this out for yourself. Worse still you've asked the agent and believed what they said (which as you can see generally turns out to be either complete bollacks).

But as others have said 24 month rule expenses is the main one.

And no leaving for one month makes no difference. Where on earth did agent get that idea from?