24 month rule as a perm

[b r]

IME as a perm (and many companies with lots of t&e) your expenses are covered by the company and they decide the policy for the expenses you can claim.

Sometimes it's less than HMRC lets you have tax-free (ie ppm).

The company then sets those expenses against it's gross income as per the tax policy of the relevant country they're operating in - never seen it impact the employee.

[malvolio]

Actually the real answer is "Ask your line manager". It's not your decision any more, it's company policy.

Or to put it another way, if you were subject to the same rules as a contractor, you would be inside IR35 by several miles so wouldn't be able to claim expenses anyway. So I have no idea why you are even asking.

[TheFaQQer]

^^ this. If your employer is sending you to places other than your designated permanent office, then you can reclaim the expenses incurred from them.

Should you spend >40% of your time at another location (say, you do two days a week in Leeds when your base is London) then, once you know that arrangement will be in place for at least 24 months (even if you've only been doing the travel for 18 months to date), you will no longer be able to claim tax relief on the expenses and they will become a BIK.

Travel from home to your designated permanent office is not claimable.

It works exactly the same as it does for contractors except we claim our homes are our designated office in order to claim t&s expenditure.

When I was a consultant, if the project went over 2 years then the company made good the loss in taxable expenses.

[northernladuk]

But as a perm why would I have one... checkmate!

Meh...

But TCP said same as me

[ladymuck]

^^ this. If your employer is sending you to places other than your designated permanent office, then you can reclaim the expenses incurred from them.

Should you spend >40% of your time at another location (say, you do two days a week in Leeds when your base is London) then, once you know that arrangement will be in place for at least 24 months (even if you've only been doing the travel for 18 months to date), you will no longer be able to claim tax relief on the expenses and they will become a BIK.

Travel from home to your designated permanent office is not claimable.

It works exactly the same as it does for contractors except we claim our homes are our designated office in order to claim t&s expenditure.

[TheCyclingProgrammer]

Just wondering how the 24 months rule which was designed for perms actually works for perms, as usual NLUK has muddied the waters

Permanent status with an employer is irrelevant. All that matters is the workplace.

If a workplace is considered permanent then there is no 24 month rule as this only applies for temporary workplaces.

If you're a full time employee then is very likely your employees office will be a permanent workplace. If they have multiple bases then it depends.

[SlipTheJab]

Maybe you should have asked your accountant then

But as a perm why would I have one... checkmate!

[northernladuk]

Just wondering how the 24 months rule which was designed for perms actually works for perms, as usual NLUK has muddied the waters

Maybe you should have asked your accountant then

[SlipTheJab]

Just wondering how the 24 months rule which was designed for perms actually works for perms, as usual NLUK has muddied the waters

[TheFaQQer]

You pay them, claim back from your employer. Employer generally has a dispensation to avoid having to declare them on your P11D (if they are big enough).

If the employer isn't repaying you then look for another employer.

[northernladuk]

What travel expenses will you have? Why won't your client pay them?

If you are talking 24 month rule then it's if you expect to be there 2 years. As a perm thats a good expectation so you are caught already no?
Mentioned in here.
https://www.gov.uk/government/consul...scussion-paper

[SlipTheJab]

Right here's one for ya, if I was to go perm with my current client (carrot is being dangled) how would I go about claiming travel expenses against tax for the 1st 2 yrs, is it an end of year thing? Seems as contractors we do this all the time but I've never heard of a permie actually doing this...