Quick question on the 2 year rule

[kingcook]

'Just say NO to brollies!'

+1

I often wonder how brollies survive. It shouldn't take long for a contractor to work out that "ltd co is the way to go" (TM)

[northernladuk]

+1

I often wonder how brollies survive. It shouldn't take long for a contractor to work out that "ltd co is the way to go" (TM)

You have seen some of the posts we get here. There is plenty of work out there for them yet.

[LisaContractorUmbrella]

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!'

It's got nothing to do with going brolly or Ltd BB - the fact is that the 24 month rule and the 40% rule are what they are and you (or your umbrella company) can chose to respect those rules or you can ignore them. I am sure there are umbrella companies out there who will break the rules in the same way as Ltd Co contractors - personally I don't think it's right but that's just MHO

[malvolio]

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!'

And your point is...?

The rule is simple. Work back from when you know the current contract terminates, at some point in the future. Count back 24 months from that date. If you have spent more than 40% of your time on the client site over that 24 months the rule applies. That includes forays on to other contracts and periods out of work. That sorts out the duration aspect.

As for "Client site", as we all know that is anywhere at the end of substantially the same journey, which for London workers is basically the area around nearest main line train station terminus, or the equivalent for us more rural types

You can then argue the point with Hector if he asks. At least you'll be working to the same parameters.

It really isn't as hard as people make it out to be.