Reply to: Does a gap of 3 months between contracts reset the 24 month rule?

[slackbloke]

Thank you for all the replies.

I didn't consider the possibility that 'time' at a temporary work location could be interpreted as 'time elapsed' (12+3+10=25 months) rather than 'time worked' (12+10=22 months) .

Suppose you did a 6 month contract once a year (January to June) at a particular site. Does that really mean that travel expenses are not claimable in year 3?

My opinion would be not claimable, as you would still be there over 40% of the time.

[Moptop]

The 24 month rule comes into place as soon as you know you will be there for more than 24 months, 3 months isn’t enough of a gap (not sure but its at least a year) so 12+3+10 = 25 months so you should have stopped claiming travel expenses when you took the 10 month contract.

Thank you for all the replies.

I didn't consider the possibility that 'time' at a temporary work location could be interpreted as 'time elapsed' (12+3+10=25 months) rather than 'time worked' (12+10=22 months) .

Suppose you did a 6 month contract once a year (January to June) at a particular site. Does that really mean that travel expenses are not claimable in year 3?

[TheBigYinJames]

Which recent changes are you referring to?
I remember it being this way in 1998.

I remember flares the first time round. 88 is recent for me
Seriously, I thought this was a recent thing, i thought they were 'cracking down' on expense claims

[Integrity]

I think the most heinous part of the recent changes is that if they can deem you to have made no substantive change to your journey then they can treat it as a single site.

So if you live in London and travel to a gig in Leeds, and then later, travel to a gig in Bradford or Wakefield, they could argue that the journey is pretty much identical, even if the places are quite far apart.

Which recent changes are you referring to?

I remember it being this way in 1998.

[TheBigYinJames]

What, you want me to Tax you twice.

No i want you to turn 28% into 88%

[rawly]

Is rawly available to work out my tax liability?

What, you want me to Tax you twice.

[TheBigYinJames]

My accountant said it has to be at least a year gap before you can claim again.

I think the most heinous part of the recent changes is that if they can deem you to have made no substantive change to your journey then they can treat it as a single site.

So if you live in London and travel to a gig in Leeds, and then later, travel to a gig in Bradford or Wakefield, they could argue that the journey is pretty much identical, even if the places are quite far apart.

[Batcatz]

Sadly, I wish you were right. I am in exactly this position, contract for 2 years, terminated, no work for 4 weeks then another new contract at same location doing different thing. No matter how much I read and re-read the info from HMRC, I can't claim :-(.

I left in Dec and went on holiday, came back to same gig for 2 months in Feb, left in March and back in April.

My accountant said it has to be at least a year gap before you can claim again.

Batcatz

[TheBigYinJames]

Oh yeah. I averaged eveything twice.
Just ignore me, and carry on everyone.

Is rawly available to work out my tax liability?

[slackbloke]

Oh yeah. I averaged eveything twice.

Just ignore me, and carry on everyone.

Sadly, I wish you were right. I am in exactly this position, contract for 2 years, terminated, no work for 4 weeks then another new contract at same location doing different thing. No matter how much I read and re-read the info from HMRC, I can't claim :-(.

[rawly]

No, 88% is the average.

Oh yeah. I averaged eveything twice.

Just ignore me, and carry on everyone.

[slackbloke]

Yes, if you add the %'s and not take an 'average'. I thought the MHRC site said 'average' time.

No, 88% is the average.

[rawly]

Ermm, I think your maths is wrong. It is 22 months out of 25. That is 88%

Yes, if you add the %'s and not take an 'average'. I thought the HMRC site said 'average' time.

[slackbloke]

This is an excellent question.

For the 24 Month rule to apply you need to spend at least 40% of your time engaged on a contract at a particular temporary location.

After 12 Months your contract ended and you then spent 0% time at the site for 3 Months. By the very nature the contract terminated and you had no indication a new one would happen in the future, then in my opinion the Clock was reset for your new 10 month contract.

Some might argue you spent 12+3+10 = 25 Months, out of which it was 100% (12/25) + 0%(3/25) + 100% (10/25) = 48% + 0% + 40%. The average over 25 Months of this is 29.3% - so using Mathematical averages you are still below 40%. That 0% period really pulls the average down doesn't it.

Ermm, I think your maths is wrong. It is 22 months out of 25. That is 88%

[rawly]

This is an excellent question.

For the 24 Month rule to apply you need to spend at least 40% of your time engaged on a contract at a particular temporary location.

After 12 Months your contract ended and you then spent 0% time at the site for 3 Months. By the very nature the contract terminated and you had no indication a new one would happen in the future, then in my opinion the Clock was reset for your new 10 month contract.

Some might argue you spent 12+3+10 = 25 Months, out of which it was 100% (12/25) + 0%(3/25) + 100% (10/25) = 48% + 0% + 40%. The average over 25 Months of this is 29.3% - so using Mathematical averages you are still below 40%. That 0% period really pulls the average down doesn't it.