Travel & Subsistence 2yr rule question

[thunderlizard]

As of next month I won't be able to claim the 40p a mile or subsistence.

Yes you will. You'll just have to pay tax on it, that's all. I'm sure you'll barely notice it.

[The Lone Gunman]

Just one final point, if I go Ltd does the fact that I have spend the last 2yrs on the same contract work against me from an IR35 point of view ?

Cheers

Steve

Oh FFS!!!! Do some research!
The length of contract will be examined, but it is the contract as a whole that will determine your status.
A decent legal could be able to argue that you have achieved preferred supplier status. They should also be pointing out that some projects are long term commitments, assuming that you havent just been doing odd jobs here and there. Even then, there are arguments.
If you are going to get involved in this then learn what you are getting into and how to stand your corner.

[swebb]

Just one final point, if I go Ltd does the fact that I have spend the last 2yrs on the same contract work against me from an IR35 point of view ?

Cheers

Steve

[swebb]

Thanks for the quick responses. As I thought they got me by the short and curlys.

As for when I knew, I don't offically yet. The contract ends the day before the 2yrs is up. I'm then going on holiday and then when I get back with any luck the company will have decided if they are going to offer me another extension.

[The Lone Gunman]

How many Knoob Heads does it take to work it out for themselves?

As far as Hector is concerned 2 years is a reasonable length of time for you to decide to relocate.
This is based on you and the location. The employer and end client don't matter, just you and the location. You can change employer, you can change client, but as long as they are in a certain location you run out at 2 years. As Gonz said, the 2 years is limited to when you knew it was going to be more than 2 years. As soon as you knew you stopped being able to claim.
A location is a little less clearly defined but could be "The City of London" for instance. Moving next door or 100 yards or even half a mile is not necessarily a change of location. I would suggest if you take the same train or motorway to work then it is the same location.

[Gonzo]

Hi,

I've been working for a client for just under two years now via an umbrella company. As of next month I won't be able to claim the 40p a mile or subsistence. Does this still hold true if I switch from the umbrella and go Ltd ? Would the IR still see this as a carry over into 2yrs or does working there via a different legal entity change things ?

Thanks in advance for any advice.

Steve

Once you knew you would be visiting the site for more than 24 months then it ceases to be a temporary workplace and you can no longer claim travel costs as an expense.

How long ago did you know that you would be there longer than 2 years? Because that's how much BIK you are going to have to pay on the travel expenses you have already claimed.

[chris79]

Hi,

I've been working for a client for just under two years now via an umbrella company. As of next month I won't be able to claim the 40p a mile or subsistence. Does this still hold true if I switch from the umbrella and go Ltd ? Would the IR still see this as a carry over into 2yrs or does working there via a different legal entity change things ?

Thanks in advance for any advice.

Steve

Yes they would, changing outfits wouldn't solve anything here.

[swebb]

Hi,

I've been working for a client for just under two years now via an umbrella company. As of next month I won't be able to claim the 40p a mile or subsistence. Does this still hold true if I switch from the umbrella and go Ltd ? Would the IR still see this as a carry over into 2yrs or does working there via a different legal entity change things ?

Thanks in advance for any advice.

Steve