2 year rule, how long before I cant return?

[Bryn Rogers]

Hello all,

The title says it really. Is there a hard fixed length of time I need to be absent before I can return to the same clientco site and claim expenses again (while living away from home).

Thanks.

[DaveB]

Three months seems to be the rule of thumb. Might be able to get away with less if you can show you were working elsewhere for another client in the meantime.

[deckster]

The rules are that you can claim expenses up until you expect to spend over 40% of your time at a site for more than 2 years.

I have always interpreted this in a rolling sense, ie add up the time you have spent (or expect to spend) over a two year period; if it's > 40% then you can't claim.

[expat]

Perhaps one of the tax guys who reads this board could answer that? If they are really trying to help us be legal, that is.

[BolshieBastard]

The rules are that you can claim expenses up until you expect to spend over 40% of your time at a site for more than 2 years.

I have always interpreted this in a rolling sense, ie add up the time you have spent (or expect to spend) over a two year period; if it's > 40% then you can't claim.

**** that! It may be the rule but I pay myself travel expense for the full 2 years.

Oh, and I havent been caught by HMRC's 'finest' either. So **** em again!

[NotAllThere]

I have always interpreted this in a rolling sense, ie add up the time you have spent (or expect to spend) over a two year period; if it's > 40% then you can't claim.

Then you are doing yourself a disservice, or you're not being clear about waht you mean. You can claim right until the point that you know that you're going to be there more than two years. So if you get a 2 year contract, you can claim right to the points where you get a renewal taking you over.

[LisaContractorUmbrella]

The 24 month rule comes into play as soon as you become aware that your contract will extend beyond that period. e.g. if you have an 18 month contract which is then extended for another 12 months, the ruling will apply at the point when the extension is confirmed.

It will also apply if you were to have a 12 month contract with one agency at site A and then secured an 18 month contract with a different agency at site A. It is the same situation with an umbrella company - changing company has no effect on the 24 month rule as you are still working at the same site.

When you change contracts, if the difference in travel is not significant the 24 month rule will also apply i.e. if you have a 12 month contract in the banking district and then get an 18 month contract for a different bank but in the same area.

With regard to leaving a site and coming back again - the 40% rule will apply. If you work at a site for 18 months, leave for 4 months and then come back for another 18 month contract the 24 month rule will apply as, in 40 months you worked for 36 months at the same site which is clearly more than 40% of the total period.

HTH

[deckster]

Then you are doing yourself a disservice, or you're not being clear about waht you mean. You can claim right until the point that you know that you're going to be there more than two years. So if you get a 2 year contract, you can claim right to the points where you get a renewal taking you over.

Yes you're quite correct, I didn't actually mean what I wrote Of course the 40% rule only comes into effect after you have been (or expect to be there) 2 years.