The 2 year rule - workaround?

[Bluebird]

I am OK with the two year boundary definition.

[I was more interested in whether it would effectively start again if I resigned from my current umbrella and started anew as an employee of another company (or even got a LTD)

Also, the company I am currently contracted to want to move me from my current location to another office 4 miles out of town - does this count as a different location or not? (still the same post town)

my understanding is that changing your employer has no impact on your place of employment - it's where you work regardless of who you work for - I had a gig a while ago via an agency for 12 months, then went direct to the client for 12 months - the client wnated to extend again but it would have meant going over the 24 months.

On the second point, HMRC makes reference to things like depots and such. if you are working for the same company and they are moving you from Head Office to a another Office within the same area, the head office will still be seen as your "permanent location" so changing offices doesn't get you round this either nor would the closure of an office and relocating.

As I said this is MY understanding, suggest you check with HMRC or an accountant for a professional view.

[oldtimer45]

2 year rule

I am OK with the two year boundary definition.

[I was more interested in whether it would effectively start again if I resigned from my current umbrella and started anew as an employee of another company (or even got a LTD)

Also, the company I am currently contracted to want to move me from my current location to another office 4 miles out of town - does this count as a different location or not? (still the same post town)

[Bluebird]

I concur with what chris has said. I have read this serveral times in the post and have confirmed it with accountant and HMRC !!!!

you "could" be ok for year 2 it depends on the dates, ie

Initial Contract 1/1/06 - 31/12/06
extension for 1/1/07 - 31/12/07 is ok,

however once you get told the contract goes on after 31/12/07 then you can't claim from that point

i.e. if you get told on 31/07/07 that your contract will be extended, then you can't claim expenses from 31/07/07.

[PAG]

Not that I don't believe you chris, but could any of the old timers confirm this? If I sign a 1 year extension after one year do I have to stop claiming travel expenses at that point or not?

I concur with what chris has said. I have read this serveral times in the post and have confirmed it with accountant and HMRC !!!!

[Ruprect]

that's not true.

You would be fine in year 1

You would also be fine in year 2, but at the point in year 2 you are notified it will continue a day past 2 years, that is the point in which the 2 year rule applies, so it they notify you of an extension after 1 year and 11 months, you would be bound by the 2 year rule at exactly this point.

Not that I don't believe you chris, but could any of the old timers confirm this? If I sign a 1 year extension after one year do I have to stop claiming travel expenses at that point or not?

[craigscoob]

.

.k

[Jammy Dodger]

i had a row with brooksons over this when i worked for the a few years ago.

after being told that it was based on vicinity, i asked what was the minimum distance that the taxman would consider as a new site......no answer.

[XLMonkey]

When it comes to travel expenses, the taxman doesn't care who you work for (or through), only where you work. 2 years in the same place and you are no longer entitled to travel expenses, even if you change clients during that period.

[Euro-commuter]

Some people get their rate increased to cover the lack of expenses etc...I don't imagine many companies agree to this though. You'd need to be pretty damn indispensable...

As in, they want to keep you for over 2 years?

[chris79]

Anyway its from when you know you are going to be there over 2 years. So if you had 2 x 1 year contracts for the whole of the second one you couldnt claim.

that's not true.

You would be fine in year 1

You would also be fine in year 2, but at the point in year 2 you are notified it will continue a day past 2 years, that is the point in which the 2 year rule applies, so it they notify you of an extension after 1 year and 11 months, you would be bound by the 2 year rule at exactly this point.

[Sockpuppet]

Anyway its from when you know you are going to be there over 2 years. So if you had 2 x 1 year contracts for the whole of the second one you couldnt claim.

[BOBJ]

Some people get their rate increased to cover the lack of expenses etc...I don't imagine many companies agree to this though. You'd need to be pretty damn indispensable...

[THEPUMA]

Nope afraid not.

Even if you continue to work at a different site in the same vicinity, you cannot continue to claim expenses.

Joel

[oldtimer45]

I have a (completely hypothetical ) query on the 2 year rule, which I could do with some advice on, as follows

Assume I worked for an umbrella company under PAYE for nearly 2 years, and had a contract at the same site, but on my 2nd anniversary resigned from the umbrella company and joined another umbrella, but continued the contract at the same site.

Could I in theory claim expenses from the new umbrella (and the taxman) as if it was my first contract, given that I had a new employer?

just a thought!