Quick question on the 2 year rule

[Sausage Surprise]

Started at Client A in March 2011
Finished Client A end of October 2011
Started Client B beginning November 2011 (completely new client in a different location)
Finished Client B at end of December 2011 (2 months)
Started back at Client A in January 2012.

Does the 2 yr rule now start again from Jan 2012?

[MyUserName]

How different is the location?

[Sausage Surprise]

How different is the location?

Client A is 90 miles from home
Client B was 130 miles from home in a different direction

[eek]

Started at Client A in March 2011
Finished Client A end of October 2011
Started Client B beginning November 2011 (completely new client in a different location)
Finished Client B at end of December 2011 (2 months)
Started back at Client A in January 2012.

Does the 2 yr rule now start again from Jan 2012?

no because its a certain percentage over the 2 years. So if you renew in March 2013 having been there for 22 of the 24 months it probably counts but I'm not sure what that percentage has to be. Its lower than most people think however.

http://forums.contractoruk.com/accou...year-rule.html has some comments that may be worthwhile and experts will no doubt be around later.

[northernladuk]

Does the 2 yr rule now start again from Jan 2012?

No it doesn't.

It is less than 40% of your time in a rolling 24 month period...

Here are a load of links to peruse...

http://forums.contractoruk.com/accou...questions.html

[cojak]

Nope.

And I would say that you need at least a 6 month break between the same location, althought I would go for 9 - 12 months.

[BolshieBastard]

Nope.

And I would say that you need at least a 6 month break between the same location, althought I would go for 9 - 12 months.

6 months would be fine. In fact, you'd probably get away with 3 months unless a pedantic tax inspector actually examined your claims.

[LisaContractorUmbrella]

6 months would be fine. In fact, you'd probably get away with 3 months unless a pedantic tax inspector actually examined your claims.

Unless I've missed something - how will a gap of 3 months help? You still have to consider the 40% part of the 24 month rule and that is rolling

[BolshieBastard]

Unless I've missed something - how will a gap of 3 months help? You still have to consider the 40% part of the 24 month rule and that is rolling

Because Im limited and dont use a brolly. I know some brollies who wont pay travel expenses in the same geographical location unless there's a 12 month break!

And as I said, unless your company accounts are investigated by an arsey tax collector, it wont matter a fig. Brollies on the other hand will stop a contractor from being able to do this which is why i say 'Just say NO to brollies!'

[NotAllThere]

Excellent point.