Reply to: 2 year rule versus limited company

[k007]

What about contracts that involve travelling to different sites on a daily basis? how does the 2 year rule kick in then if you are there for more then 2 years with two new contracts and one requires you to travel on a daily basis? i.e contract states one location but has over 100 different sites ranging from 3miles to 9 miles from the main site?

Does it then become the fact that you are working for the same client stiill, or do they take the locations into consideration?

[TheFaQQer]

Would my claiming period start from the very first time I claim expenses?

No - it started when you started work there, whether you claimed any expenses or not.

And as soon as you know that you will be there > 2 years, then you stop claiming expenses. So, if you have been there 23 months and you accept a three month contract, then you have to stop claiming when you sign the new contract.

[Archangel]

But when does my expense claiming time count from? From the first month I make a claim as with the agency I never did put any expense claims or from the time I started with my brolly company and put the 1st months claim in?

Its a tricky one I think...

It starts from the moment you start work at a location (i.e. The City). Nothing to do with agency, brolly, client or anything else.

Not tricky at all.

[k007]

But when does my expense claiming time count from? From the first month I make a claim as with the agency I never did put any expense claims or from the time I started with my brolly company and put the 1st months claim in?

Its a tricky one I think...

[NotAllThere]

Client, agency, brolly, ltd. , contract. All irrelevant. Where you are working is all that matters.

[k007]

24 month contract rule

How about if you are being paid PAYE for 3 months by your Agency not claiming any expense and then join a Umbrella company and start to claim expenses where does the 24 month rule kick in?

is it from the time you join a umbrella company and start claiming expenses?
or from the beginning of the contract.

I have been on a ongoing contract with the same client for 23 months.
The first 3 months was not claiming any expenses, then claimed through a umbrella company. Had a month of so did not claim anything. Now they want me to enter a new contract but my job will involve visiting all their client sites BUT they are putting the same client site on the Contract.

Any ideas as to what I should do and where I stand?

Would my claiming period start from the very first time I claim expenses?

[neilmcl]

Hi All

Can I have some clarificaition please

Worked in London on contract from 18/12/06 to present

Currently livining in Nottingham

I will be working in Leek (by Stoke) 3 days a week and London 2 days with my latest extension 5/10/08 to 2/01/09

Does my clock get reset to 0 ???

Can I still claim for trips to London ???

Thanks

If you can show that you work, say 1.5 days, in London then you should get away with it. Unless you're contract states 2 days in London then how is the HMRC going to know whether you were there the full 2 days or left for Nottingham the morning of day 2 and work from home for the remainder of that day.

[THEPUMA]

Hi All

Can I have some clarificaition please

Worked in London on contract from 18/12/06 to present

Currently livining in Nottingham

I will be working in Leek (by Stoke) 3 days a week and London 2 days with my latest extension 5/10/08 to 2/01/09

Does my clock get reset to 0 ???

Can I still claim for trips to London ???

Thanks

I think the answer is that it depends. If we assume that, once you take account of your company administration duties, the 2 days spent in London, represents less than 40% of your working week, then the examples of Edward and Ellery in the HMRC guidance (http://www.hmrc.gov.uk/helpsheets/490-chapter3.pdf) would suggest that you can claim the travel.

However, this seems inconsistent with para 3.10 which states that "Even if the employee attends the workplace only one or two days a week, if it is on a regular basis, the workplace may still be a permanent workplace.".

I think if I were you I would either claim the travel if your circumstances are similar to those of Edward or Ellery. If you are uncomfortable with this, you could request an opinion from your PAYE tax office but the risk with that is it could be the catalyst for a PAYE compliance visit which could result in an IR35 investigation.

PUMA

[The Lone Gunman]

But my new contract has a different address (Stoke) than my previous one (London).

Does that make any difference

Go and look at the HMRC web site as instructed by others.
Once you have read it, if you don't understand something then come back and ask.

There is no point badgering us because 1) we are only offering our experience and opinion. 2) We are not responsible for HMRC rules.

[TykeMerc]

But my new contract has a different address (Stoke) than my previous one (London).

Does that make any difference

In my opinion yes, otherwise those of us who have to attend regular meetings in one location would be screwed.
The way I treat it is the main location is the one I start the clock at and alternate locations are ignored unless they are geographically close to the main location. In your case Leek.

[AndyGarbs]

But my new contract has a different address (Stoke) than my previous one (London).

Does that make any difference

[XLMonkey]

Does my clock get reset to 0 ???

Can I still claim for trips to London ???

Thanks

Nope and nope. You are still spending 40% of your time in London, so its still classed as your place of work. You can claim for trips to Stoke.

All the blurb and some examples are on the HMRC website - search on Declared Place of Work.

[AndyGarbs]

My Situation

Hi All

Can I have some clarificaition please

Worked in London on contract from 18/12/06 to present

Currently livining in Nottingham

I will be working in Leek (by Stoke) 3 days a week and London 2 days with my latest extension 5/10/08 to 2/01/09

Does my clock get reset to 0 ???

Can I still claim for trips to London ???

Thanks

[NickFitz]

Use a full stop at the end of a sentence. Or even a question mark or an exclamation mark!

Or create some dramatic tension by using an ellipsis...

[THEPUMA]

Proud owner of 5 Xeno Geek Points

Use a full stop at the end of a sentence. Or even a question mark or an exclamation mark!