My life as a contractor- Day 2

[TheFaQQer]

Well it took me until working day 15 (Monday), to get my first face to face interview. I got offered the contract the next day, and was told I was "head and shoulders" above the competition

Congrats

Its a six month contract, at the top end of my rate range (or at least the range I had in my mind before I started), central London, and sounds like a really interesting role Its a 2-3 year project, so fingers crossed it will all work out and I can stay there for a long time.

So - will you be claiming expenses then or not?

[NorthWestPerm2Contr]

Well it took me until working day 15 (Monday), to get my first face to face interview. I got offered the contract the next day, and was told I was "head and shoulders" above the competition

Its a six month contract, at the top end of my rate range (or at least the range I had in my mind before I started), central London, and sounds like a really interesting role Its a 2-3 year project, so fingers crossed it will all work out and I can stay there for a long time.

The agent hand delivered the contract yesterday, which I have signed and returned. I start a week Monday, so that will be a total of 24 bench days between finishing my permie job and starting my contract job. Not bad for a "stupe" hey boo

Really happy and looking forward to starting

Thank you everyone for your advice and encouragement

Well done mate, you definitely seem a lot wiser than when I first set about contracting, but then again I didn't have that much experience and really took a risk at an especially risky time.

Your calm and collected approach is definitely the way to go as your better off waiting 3 weeks to get say 400/day than immediatley jumping into a 300/day role.

Way to go.

[kempc23]

Congrats

So - will you be claiming expenses then or not?

Yes of course, its a temporary place of work, as my contract is only for 6 months. So as far as I am aware, I will be there for 6 months, until that changes contractually. If I end up being there for 2 years, or as soon as my contract will extend to beyond two years, it is no longer a temporary place of work. Thats the way I understood it anyway?

My travel expenses are minimal in any case.

[kempc23]

Or maybe not....


Just had a chat with my accountant. He seems to think that because I have been working in London for the past 6 years, the new location will not count as a temporary location. So therefore I will not be able to reclaim travel expenses to and from work.

Does this sound right? Although my office was in London for the past six years, I was in London for probably <50% of the time, and in my actual office for < 20% of the time.

[kempc23]

Found the below on the HMRC website, which seems to clarify that I will not be able to reclaim travel expenses

A computer consultant is the only employee of a company that she controls. She is a specialist in banking systems. She spends 18 months working full-time at the headquarters of a merchant bank in Lombard Street in the City of London. She then moves next door to design a new computer system for a different bank where she expects to stay working full-time for 22 months. After that assignment she moves to a bank close by on Cheapside for 17 months. The employee expects to work continuously in the City of London albeit on the premises of different banks. Her travel from home to work will be broadly the same every day. No deduction is due for the cost of travel between her home and any of these workplaces.

This example illustrates the effect of the rule in Section 339(7) ITEPA 2003 that requires us to ignore a change of workplace if that change does not have any significant effect on the employee's journey to work, see EIM32280.

Each of these workplaces would be capable of being a temporary workplace because her attendance is for a limited duration, see EIM32075. Each workplace taken in isolation would not be excluded from being a temporary workplace by the further rule explained in EIM32080. Her attendance is in the course of a period of continuous work (she works at each workplace for 40% or more of her working time) but her time at each workplace taken in isolation does not exceed 24 months. However, when we ignore the change of workplace and consider the length of time spent at the three workplaces as if they were a single workplace, the total time spent does exceed 24 months. Therefore each of these workplaces is a permanent workplace.

[jmo21]

Or maybe not....

Just had a chat with my accountant. He seems to think that because I have been working in London for the past 6 years, the new location will not count as a temporary location. So therefore I will not be able to reclaim travel expenses to and from work.

Does this sound right? Although my office was in London for the past six years, I was in London for probably <50% of the time, and in my actual office for < 20% of the time.

I'm sure someone posted a link on this recently, if the distance between the 2 locations is greater than 10 miles then you're fine. Was it on ContractorCalculator?

Was talking about this recently with a friend of mine, he just refused a contract extension as it would take him past 2 years (think he was at 20 month point). I pointed out to him that his contract before that one was about 2 miles away.

He said his accountant says it's fine, it's per workplace. Now as far as I am concerned that is totally wrong, and if he ever gets investigated he'll get pulled up on it.

So don't always believe what your accountant says!

I don't think there is an example on HMRC's site that deals with that specific example though.

Anyone ever asked HMRC directly?

[robin]

I'm really confused why do they write things that make you have to read it 10 times even then it seems not 100% clear!

However, when we ignore the change of workplace and consider the length of time spent at the three workplaces as if they were a single workplace, the total time spent does exceed 24 months. Therefore each of these workplaces is a permanent workplace.

Yes but I thought it was the change of workplace and the fact they were under 24 months that made it not look permanent!

So at what point are you ok? Is it after a certain time? if you work more than so many miles from your last job? Surely if its location related then over time if you only keep getting jobs in the same locations you will get to a point where you can never claim expenses again!

Edited as just seen post above..so every job I get I will have to make sure its 10 miles away from any other job I have had otherwise if not I have to add it onto the time of that other job to make sure I don't go over 24 months of being at the same location?

[whitehorse]

Going for my own first interview

Guys,
Maybe this is a digression, but i'm going for my very first contract interview tomorrow. I'm still keeping my perm job while i'm contract hunting.

From my research, i see IP, routing, switching security, MPLS VPN's attract an average rate of £350/day here in Scotland where i live. The agency i'm working with is talking about £250. Do i haggle, or let it go as this is my first contract oppurtunity?

Thanks all

[kempc23]

I'm sure someone posted a link on this recently, if the distance between the 2 locations is greater than 10 miles then you're fine. Was it on ContractorCalculator?

Was talking about this recently with a friend of mine, he just refused a contract extension as it would take him past 2 years (think he was at 20 month point). I pointed out to him that his contract before that one was about 2 miles away.

He said his accountant says it's fine, it's per workplace. Now as far as I am concerned that is totally wrong, and if he ever gets investigated he'll get pulled up on it.

So don't always believe what your accountant says!

I don't think there is an example on HMRC's site that deals with that specific example though.

Anyone ever asked HMRC directly?

No it was on the HMRC website. According to my accountant, London is considered as "one place", which is odd, as you can easily have two hour commutes if you are one side of london and work on the other.

The ten mile thing doesnt help me either

[northernladuk]

All sorts of different mileages have been mentioned and never agreed on but the term 'geographical location' has been used before but is still grey. I don't think you can put a mileage on it for mathematical reasons. Think about an isoceles triangle. If the base is 10 miles different the actual distance travelled from home to work is the same. I am sure HMRC would argue that in that case there is no significant change in distance travelled. If it is 10 miles further in a straight line then yes is will be different.

Thing is what is significant? I would not call 10 miles significant but I play safe with these types of things.

The way it was explained to me is that it was designed for us but think of it like a permie. The idea of this arrangement is to provide a break for two years for someone that has moved a considerable difference, say Manc to Brum. 2 years seems to be a reasonable time for that person to make a decision to relocate. If he decides not to then no more cash, it is on his head. If he does move then problem solved.
As to whether or not it restarts is whether or not his next role is far enough to consider relocation. If he lived in Brum center and travelled 20 miles south and then got a new job 20 miles north he isn't going to relocate, he is going to just take in his stride. I would say then that because he doesn't think to relocate then HMRC wouldn't see this as significant enough to re-start the clock. Does that make sense.

Generally people are happy to work with in a largish radius of home without quesion. A 20-30 mile commute isn't unreasonable so draw a circle around your house at that radius and anything in that area I would expect HMRC to argue is not worthy or restarting the clock.

This is probably just as grey, offers no answer and in fact err's on the side of HMRC which could be pretty gauling for some people but it seemed to give an understanding of what HMRC are trying to aim at.

That help at all?