Extension taking me over 2years

**DaveB** · 27 April 2011, 10:05

Rate increase to cover it I'd say. That way client co cant get snotty about the cost if they think you are billing them too much for expenses.

**pmeswani** · 27 April 2011, 10:25

Originally posted by Pogle View Post

I'd like to hear how others have dealt with this situation.

I've been at clientco for 15 months. I've just been offered an extension til July 2012.
I work away and stay in hotels during the week (3 nights).
So if I accept the extension I will fall foul of the 2 year expenses rule and be out of pocket. I shall not be doing this!
I don't mind staying but will have to have either an increase in rate or clientco pay expenses directly.

Any (helpful ) advice

Difficult one. I would ask the client if they would consider giving you an 8 month extension and then discuss a further extension at that point. By asking for an 8 month extension, you can argue that you didn't know that you were going to be there for 24 months or more.

Another suggestion is to ask if you could get a different office (located at a significant different location) added to your contract, so that you can continue to commute to the location (with the possible option of working at that location for 1 day a week, for example).

Another suggestion, ask for an increase in rate.

**Spacecadet** · 27 April 2011, 10:28

Originally posted by Pogle View Post

I'd like to hear how others have dealt with this situation.

I've been at clientco for 15 months. I've just been offered an extension til July 2012.
I work away and stay in hotels during the week (3 nights).
So if I accept the extension I will fall foul of the 2 year expenses rule and be out of pocket. I shall not be doing this!
I don't mind staying but will have to have either an increase in rate or clientco pay expenses directly.

Any (helpful ) advice

reduce your time in the office to "as required" so that out of every month you spend at least 50% working from home and make your home office your contracted normal place of work

**ChimpMaster** · 27 April 2011, 10:28

Ask for an extension for 8.5 months, or whatever it is that takes you just up to 23.5 months.

Yes, you do take on some risk as the client may not renew past that point, but that's something for you to assess.

**Wanderer** · 27 April 2011, 22:09

Originally posted by Pogle View Post

II work away and stay in hotels during the week (3 nights).
So if I accept the extension I will fall foul of the 2 year expenses rule and be out of pocket. I shall not be doing this!

Yeah, it's a bit of a blow but let's look at this calmly and work out how much the two year rule will actually cost you.

Let's say you currently spend £250/week on travelling expenses and you are a basic rate tax payer, outside IR35 and on the VAT FRS. You're are going to be out of pocket by £10/day. Doesn't sound so bad now, does it...

**ChimpMaster** · 28 April 2011, 12:26

Originally posted by Wanderer View Post

Y........
Let's say you currently spend £250/week on travelling expenses and you are a basic rate tax payer, outside IR35 and on the VAT FRS. You're are going to be out of pocket by £10/day. Doesn't sound so bad now, does it...

=£2,000/year.

Sounds a bit worst now, doesn't it...

**Platypus** · 28 April 2011, 13:10

Originally posted by ChimpMaster View Post

=£2,000/year.

Sounds a bit worst now, doesn't it...

Not compared to a daily rate of say £500 = £100,000 per year

**Acme Thunderer** · 29 April 2011, 14:58

Originally posted by Spacecadet View Post

reduce your time in the office to "as required" so that out of every month you spend at least 50% working from home and make your home office your contracted normal place of work

Not sure that will work. According to this EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule If you have spent more that 40% of your time in the past 2 years or longer at a place it is no longer a temporary place of work. So even if the OP only went 1 day a week the travel is not allowed as an expense as over the period it will still average out as greater than 40% of the period of working at the location.

**BolshieBastard** · 29 April 2011, 18:23

Since your contract is with the agent, I suspect you're going to have a hard time convincing the client to 'extend' you for a lesser period and \ or give you a rate increase to cover the loss of travel and subsistence because of the 24 month rule.

And even if you do, I suspect the agent probably wont wear it since they will be losing commission (and could potentially get you replaced with someone on a lower rate giving them more of their commission0.

No harm in trying but imo, your realistic options despite what others have said are find another role or stay where you are and take the hit over the loss of travel expenses.

Extension taking me over 2years