Travel Expenses ?

[Gonzo]

No they don't. This may be the example that they use in the guidance notes, but the legislation explicitly says any two sites which are close to each other.

tim

Yes but when I looked through them I couldn't find out the boundaries of what is "close".

MyCo's accountant suggested that the two sites should be at least 10 miles apart to reset the clock, but I could not find any explicit reference to the distance in the guidance notes. - Guidance notes that I have been unable to find again on the HMRC site because the search is so unhelpful.

EDIT - I will correct myself here, I have trawled all through the guidance notes (when I could find them) but I haven't read the actual legislation.

[tim123]

No, they arn't. But the HMRC regulations explicitly count The City as one location.

No they don't. This may be the example that they use in the guidance notes, but the legislation explicitly says any two sites which are close to each other.

tim

[ASB]

No, they arn't. But the HMRC regulations explicitly count The City as one location. This is the only area where this applies. You can happily do two 18 month gigs in Battersea, for example, or Manchester, or any none City location providing they are not in the same building and claim travel for both. Quite why you would want to spend three years working in Battersea is another question.

It's worse than that. Unfortunately can't fiond the references on HMCR 'cos it's almost impossible to find anything. I'm sure there is something about it in 490 though.

Anyway, my understanding:

The City is explicitly mentioned as an example only. Manchester, Leeds etc count in much the same way. The "same destination" is based on geographical proximity and your start point.

So if you took a west end contract and then a city contract the IR could (but wouldn't normally) argue that it did not reset the clock - if you were starting from say Newbury.

[DaveB]

Sorry, typed it wrong, I meant to say, any two geographically close locations, followed by the rest of the sentence.



They are similar enough. Remember these rules aren't just made for IT contractors.

tim

No, they arn't. But the HMRC regulations explicitly count The City as one location. This is the only area where this applies. You can happily do two 18 month gigs in Battersea, for example, or Manchester, or any none City location providing they are not in the same building and claim travel for both. Quite why you would want to spend three years working in Battersea is another question.

[tim123]

Sorry, wrong. If that was the case you could never claim more than 2 years travel as a contractor ever..

Sorry, typed it wrong, I meant to say, any two geographically close locations, followed by the rest of the sentence.

All the jobs in the city are not the same. If I do a job in the city as a developer and then another as a PM that is not the type of same type of job.

They are similar enough. Remember these rules aren't just made for IT contractors.

tim

[DaveB]

No this is not correct.

Any two job locations which could be considered as you continuing in the same type of employment are the same for the 24 month rule.

The point about the rule is that it isn't just the location that you work at that has to be similar, the job type does as well. This is why the city is the best example of the same area, because all the jobs are the same.

tim

Sorry, wrong. If that was the case you could never claim more than 2 years travel as a contractor ever. If you do a development gig in scotland for 18 months and another in london for 18 months you are able to claim travel for both despite the jobs being functionally the same, development work.

All the jobs in the city are not the same. If I do a job in the city as a developer and then another as a PM that is not the type of same type of job. However I would still be caught by the travel rules as the "location" is the same for each. If I do the development gig in the city and PM in Manchester then I dont get caught by it as the locations are different. This applies even if it is for the same client.


As a contractor your permanent place of employment for tax purposes is your home address, or it should be. Travel to client sites from home therefore counts a business travel subject to the 2 year / 40% rule. If you are a permie and are being asked to travel to different sites then you only get to claim costs for travel to the site that isnt classed as your permanent place of employment and again the 2 year / 40% rule applies.

[tim123]

The only addresses HMRC class as being the same area is The City of London. Otherwise you are fine as long as the phyical addresses are differant. Might raise a few eybrows if it was on the same street but should still be ok as long as it is a differant client and building.

No this is not correct.

Any two job locations which could be considered as you continuing in the same type of employment are the same for the 24 month rule.

The point about the rule is that it isn't just the location that you work at that has to be similar, the job type does as well. This is why the city is the best example of the same area, because all the jobs are the same.

tim

[Gonzo]

The only addresses HMRC class as being the same area is The City of London. Otherwise you are fine as long as the phyical addresses are differant. Might raise a few eybrows if it was on the same street but should still be ok as long as it is a differant client and building.

Thanks.

The example that HMRC give in their guidance notes to show two sites in close proximity not resetting the 24 month clock (from memory) are two roads in the City that are actually next to each other. Which is very helpful.

[DaveB]

The site becomes your 'permanent place of work' (and you can no longer claim travel) the moment that you know you will be travelling there for 24 months, so you cannot necessarily claim travel the full 24 months.

Also, if you take another contract at a location close to the first site then then the 24 month clock is still running.

I have scoured the guidance notes on the HMRC website and I cannot work out where the boundaries of resetting the 24 month clock lie. Obviously contracts in two different cities would do it, but it is less clear about what would happen if you took 3 months off and then went back to a contract close to the first one.

Usual disclaimer at this point - I am not an accountant. etc etc

The only addresses HMRC class as being the same area is The City of London. Otherwise you are fine as long as the phyical addresses are differant. Might raise a few eybrows if it was on the same street but should still be ok as long as it is a differant client and building.

[Gonzo]

Slightly more complicated than that

Provided you have receipts, it's not your permanent place of work and you've been there less than 2 years, then yes you can claim it as an expense from your company.

HTH

The site becomes your 'permanent place of work' (and you can no longer claim travel) the moment that you know you will be travelling there for 24 months, so you cannot necessarily claim travel the full 24 months.

Also, if you take another contract at a location close to the first site then then the 24 month clock is still running.

I have scoured the guidance notes on the HMRC website and I cannot work out where the boundaries of resetting the 24 month clock lie. Obviously contracts in two different cities would do it, but it is less clear about what would happen if you took 3 months off and then went back to a contract close to the first one.

Usual disclaimer at this point - I am not an accountant. etc etc

[hi_viji]

@ Pondlife


Thanks

[Pondlife]

Provided you have receipts, it's not your permanent place of work and you've been there less than 2 years, then yes you can claim it as an expense from your company.

HTH

[Flubster]

Holy moly....cue flaming...

[hi_viji]

Hi,

I am a first time contractor and I work at a different city. Every weekend I travel back to home/office (5hrs by train) and my travel bills are quite heavy. Can I pay this to my salary (from my Ltd. Company) as Business Travel/ Onsite Travel Allowance / ????

Cheers,
Viji