24 mth rule - same distance travelled

[vwdan]

One end to a city is not a change in geographical location. You are still in x city so how can that reset the clock? If I work 10 mins from one client and the next journey is double that, a whole extra 10 mins. Does that reset the clock. There has to be a level of common sense applied here.

Also bear in mind the OP's comment.



And if 20 minutes resets the clock what on earth doesn't??

Absolutely black and white this one.

Because it's not just about changes in geographical location, it's about changes in journey due to a change in location. C'mon, you know this from the classic "Building a Bridge" example!

I'd missed the two hours bit, so I'm inclined to agree (Though I'd still rather see it on a map) - but 20 minutes could easily be a significant difference if the route changes a lot.

[Hobosapien]

Yep only location matters not how quick you commute to it. Otherwise we could do one contract via car then the next via train to make it look like a different journey.

City location is obviously trickier to justify a real change due to the nature of commuting into the city (limited routes). If outside a city limits then 20 mins can be a long way (e.g. 20 mins up a motorway). So 20 mins in this context is of no use to determine if the new location will be an issue.

In the past I've had several contracts within 20 mins of each other but as they were north of London close to M1/A1 I successfully claimed travel expenses as it fit the spirit of the rules.

Just go with your accountant's advice. He's liable if it's wrong.

[jmo21]

fwiw, a contractor colleague of mine didn't extend one contract as it would take him over the 24 month rule.

His next contract was 10 mins from the old one, in the same city, and his journey was marginally different.

HIS accountant advised him that was absolutely fine, so he carried on with his travel expenses.

I tried to explain it to him, and got a "well my accountant says its fine why should I listen to you" response.

[WordIsBond]

There's no way to answer this without specifics and the only one who has specifics is the OP and his accountant.

If you are taking the train, and it is the same line and only different by one stop, the journey is basically the same. If you have to change to a different line, HMRC is not likely to try to argue it is the same journey -- they'll go after easier targets.

Unless OP wants to give us more specifics, I'd say his accountant knows more than any of us and I'd back that advice.

OP, you might want to ask the accountant to tell you, on a scale of 1-10, how much risk there is in claiming.

[Hobosapien]

OP, you might want to ask the accountant to tell you, on a scale of 1-10, how much risk there is in claiming.

The real question is how much risk there is of being investigated by HMRC*. Unless that happens then there is no risk in claiming.

* If the expenses are large then maybe that would be a trigger for an HMRC investigation.

[Burnerg81]

It's the same joinery via car until the last 20 mins at which point I'll go left rather than right... Not exactly significant to me...

Is what someone said about my accountant being liable correct? I always thought I was or do you mean I'll be able to try and recoup the money back from my accountants firm if it came to it?

The amount is significant - about £12k taking into account about 25k miles driving p.a.

[Burnerg81]

It's the same joinery via car until the last 20 mins at which point I'll go left rather than right... Not exactly significant to me...

Is what someone said about my accountant being liable correct? I always thought I was or do you mean I'll be able to try and recoup the money back from my accountants firm if it came to it?

The amount is significant - about £12k taking into account about 25k miles driving p.a.

....and one hotel a week

[malvolio]

I've said it before several times. Assume for the sake of argument that you get there by train and there are railway connections available.
.
Would you travel to the same main line station to get to the office?

If so, the clock isn't reset...

Ok it's a crude way of doing it but it's how HMRC would look at it.

[MrButton]

I personally wouldn’t expense it given the details.

Maybe try and negotiate with the client to help out by paying for your hotel or something.

£12k is significant considering the Corp tax and personal tax you’ll have to pay on it now to meet your costs. Is it worth it? Can you get a local contract? Or remote contract?

[WordIsBond]

It's the same joinery via car until the last 20 mins at which point I'll go left rather than right... Not exactly significant to me...

So from that point on, it's 20 minutes to the left for one gig and 20 minutes to the right for the other gig? If so, then they are 40 minutes apart? That starts to be significant.

As Mal said above, what's the closest rail station? Is it the same with both gigs or is the closest station different?

If it is different you might do well to take the train some of the time, rather than driving, just to emphasise it is a different journey....