Reply to: 24 month rule

Changing Employers

I was once told by an accountant that changing employer without changing locations (e.g. moving between an umbrella and a PSC while staying at the same client) DID reset the clock.

Re: Re:Changing Employers

If you're with a brolly for 23.5 months and then go Ltd with the same client, you could become IR35 fodder, which defeats the point in this thread.

As a Ltd and trying to be a business, changing customers is normal i.e. don't say changing employers.

Having worked in the city, unless the rules have changed, I don't ever recall anybody I know ever getting more than 24 months. They had to stay away from the city for a while (alreay mentioned above) to reset the clock.
As always, seek professional advice as rules can change and we maybe all correct depending on the rules you quote for that tax year.

Re: Re:Changing Employers

"Section 3.14 example "Eloise" states that changing employer but continuing to work at a similar location does not reset the clock"


But did Eloise change employers? She worked for ‘a company she controlled’. She didn’t get a P45 from her company she just moved from contract to contract as contractors do and the geographical area kicked in.

Edit - {Para - taken out}


The Etaion example looks more interesting as they (IR) mention 26 months and not 24-months as we all know it!


Professional advice is require here.

Re:Eloise

Tim123 - the example you quote does not involve a change of employer, just a change in client location.

Looks like they weren't a muppet after all...

Re: Re:Changing Employers

Agree with Tim.

There's problems like that when you work in the city and move between companies (literally streets apart). The IR sees it in a strange way.

Re: Re:Changing Employers

then obviously you spoke to a muppet who had not read IR490.

www.inlandrevenue.gov.uk/...ts/490.pdf

Section 3.14 example "Eloise" states that changing employer but continuing to work at a similar location does not reset the clock.

tim

Re:Changing Employers

changing employer does not reset the clock.

Funnily enough that's what I thought until I called the Revenue and they confirmed the point ...

Re: Re:24 month rule

Looks like the co-op has made a good point then - possibility of 4 years expense claims !

Re: Re:24 month rule

changing employer does not reset the clock.

A change of work location (to somehwere further away than the office across the road) is required.

tim

Re:24 month rule

the above means that you re-set the 24 month clock when you move employers

Re:24 month rule

It's the company, not the individual.

What about if your working for an umbrella company and then after 2 years you move to your own ltd company. Is the ruling on the person or the company ??? (if you understand what i mean)

As with many of the queries on this forum, everyone has there own opinions on 'grey areas'

Their

F in "So bored, I visited Accounting and Legal" mode

this is not a grey area.
It's clearly detailed on IR's website as mentioned earlier and also in both Ann Redstone's IR35 books

I did ask K&B, but its always good to get more than one perspective on this.

As with many of the queries on this forum, everyone has there own opinions on 'grey areas'