Reply to: 2 yr rule and on site only 2 days per week

[hyperD]

We are looking for motivated, responsible, and reliable representatives.

Wrong board mate...

[xoggoth]

14.4 months apparently viz (100%-40%)*24months

[ASB]

2 years has now passed at my current customers site, so no more travel expeces for me.

but....

I may be able to change my working conditions so I am only onsite 1 or 2 days a week. Could I then claim the travel for the 1 or 2 days I actually travel or will hector me.

It is possible. But it does depend upon the actual circumstances. If you are still on a full-time assignement then you are strictly stuffed,

In order to be able to claim the expenses (bearing in mind the 40% rule) then you need to establish a different permanent workplace. If you have other clients you may be able to claim them, or indeed even your home or office as a permanent workplace.

Anothe way is to ensure you do "substantive" company work at home. That might get you out of the net.

Check out your exact circumstances agains 490. You might just be OK.

[Ruprect]

How far apart do the contracts need to be before you can start charging the expenses again? I have read the city of london example on the hmrc site, however what if I was working in the city of london, then move to covent garden (for example). Both are in zone 1, however geographically apart... have any of you had a similar scenario and claimed/not claimed? And what did the tax man say when/if you were investigated?

[Ruprect]

Can some one point me at the regulations governing this so I can read through the regulations for myself.

http://www.hmrc.gov.uk ... and search for '24 month rule'

[dkg]

I have a realated question. I have two contracts one which I have been there a little over a year and the second is one I worked that is coming up for over a two year. I did work full time but now work when I can fit it in. The latter contract I have to travel to various sites to perform the work. I provide consutancy at end clients. Can I still claim these mileage / train fares if I extend over the two years. Also how long a break do I need to take before the two year rule no longer applies?

Can some one point me at the regulations governing this so I can read through the regulations for myself.

[RSoles]

I think the problem here is that, having spent the previous two years
on this site, you're already over the 40%. The rule applies to 40% of the past 24 months.
You'll need a break of x months (too early in the am to calculate) to bring you back below the 40% before the clock starts again.


RS

[VectraMan]

If after 2 years you're on site for 2 days a week, does that mean you work at home for the other 3 days? Does that mean if the site is now seen as your permanent place of work you can claim travel from there to your home for the other 3 days?

What happens if you've split your time between two different sites for more than 2 years? Can you have more than one permanent place of work?

[squivy]

2yr & 40% rule

Ok darren, what if it was a new contract was at the same site. Different agenct or project for example.
I know that doesn't reset the clock, but could the 40% rule apply if the time was split between sites?

[Darren@UptonAccountants]

Expenses

It's a different scenario to the one you've quoted....the employee (MrsG) has already been working at a clients for 2 years whereas in the quoted example, the employee was only working at his normal place of work and then sent away on site part time.

Para 3.14 on page 12 - "The test is whether the employee has spent, or is likely to spend, more than 40% of his or her time at that particular workplace over a period of more than 24 months. Where that is the case the workplace is a permanent workplace so travel between there and home is ordinary commuting for which there is no relief"

As MrsG has already spent 2 years full time at the place, this would be taken as a permanent workplace.

[Bradley]

40% rule

The 40% rule would apply to a new client/contract, but Mrs G had already been on site for the 2 years.

Darren - how does what you're saying fit in with the following example from the 490 booklet?

Example

Edward lives and works in New Brighton where he is employed as an engineer.
His employer sends him to work in Wrexham for 11/2 days a week for 28 months. For the rest of the week he continues to work in New Brighton which remains a permanent workplace. In considering whether Edward is entitled to relief for travel between home and Wrexham it is important to look at the amount of time he expects to spend there each week and for how long he expects to be in Wrexham. Because he expects to be in Wrexham for less than 40% of his working time, albeit over a period longer than 24 months, and he retains a permanent workplace in New Brighton, Wrexham is a temporary workplace for Edward and he is entitled to relief for the cost of getting there and back.

[Darren@UptonAccountants]

Travel

The 40% rule would apply to a new client/contract, but Mrs G had already been on site for the 2 years.

[tim123]

Surely Darren is wrong as you now qualify under the 40% rule.

Tim

[MrsGoof]

Thanks Darren

It's what I suspected but hoped I was wrong.

[Darren@UptonAccountants]

Expenses