Reply to: HMRC audit going badly

[LisaContractorUmbrella]

Hello - I haven't moved location but...
I stopped claiming at the point I knew I'd pass 24 months
I've had 18 months not claiming.
Can I start claiming again?

I would argue that not claiming is the same in principle (and material effect) as not working there.

Would really value your opinions...
Thanks
Peter

Absolutely not - the 24 month rule applies to the location of your assignment; if you have worked there for more than 24 months you cannot claim travel or accommodation expenses

[cojak]

I would argue that not claiming is the same in principle (and material effect) as not working there.

Would really value your opinions...
Thanks
Peter

Well you could argue it, but you'd be wrong.

You must in a different location physically to start claiming.

[northernladuk]

Hello - I haven't moved location but...
I stopped claiming at the point I knew I'd pass 24 months
I've had 18 months not claiming.
Can I start claiming again?

I would argue that not claiming is the same in principle (and material effect) as not working there.

Would really value your opinions...
Thanks
Peter

You could of couse read the whole thread and understand it. If you fail at this you could at least give us a decent explaination of your situtation. I ASSUME you are still at the same client. The clock doesn't start again until you move out of the area to a new client or office. If your location hasn't changed then you can no longer claim...ever..

I can't even understand your argument.

[lje]

Hello - I haven't moved location but...
I stopped claiming at the point I knew I'd pass 24 months
I've had 18 months not claiming.
Can I start claiming again?

I would argue that not claiming is the same in principle (and material effect) as not working there.

Would really value your opinions...
Thanks
Peter

Have you worked there for more than 40% of your time for the last 2 years? If so the answer is no you can't claim as it isn't a temporary workplace.

[peterpork]

Claim / Stop / Start Again (without changing location)

Hello - I haven't moved location but...
I stopped claiming at the point I knew I'd pass 24 months
I've had 18 months not claiming.
Can I start claiming again?

I would argue that not claiming is the same in principle (and material effect) as not working there.

Would really value your opinions...
Thanks
Peter

[northernladuk]

FTFY

I am in your debt good sir.

[Scrag Meister]

Bear in mind this rule wasn't designed for us. It was more for permies relocating to different parts of the country to help. Think of it this way. Would a permie that is working in Broadgate consider a job in Canary Wharf. The answer is yes, it is a change but it is still commutable. That means there is no need for relocation help which I believe means the clock doesn't stop.

Again, if it is in an area that would be considered as commutable for permie job it would be ridiculous for us to consider this as a clock restart. Thats the rule of thumb I go for. Yes yes lots of argument about it but its a start.

FTFY

[northernladuk]

Bear in mind this rule was designed for us. It was more for permies relocating to different parts of the country to help. Think of it this way. Would a permie that is working in Broadgate consider a job in Canary Wharf. The answer is yes, it is a change but it is still commutable. That means there is no need for relocation help which I believe means the clock doesn't stop.

Again, if it is in an area that would be considered as commutable for permie job it would be ridiculous for us to consider this as a clock restart. Thats the rule of thumb I go for. Yes yes lots of argument about it but its a start.

[Fred Bloggs]

I think the vast majority of the journey would be the same as surely you would be on the same train to liverpool street / kings cross.

I agree, I think you'd lose the argument. Myself, I intend to be a little more careful from now on as a result of this thread.

[Scrag Meister]

When I first started contracting in the City of London in 2007, I was commuting from Devon and subsequently had 2 extensions that lasted me 3 years, I stopped claiming expenses after 2 years.

ClientCo2 was about 400 metres from ClientCo1 and therefore I didn't start claiming expenses.

During contract 2, I was asked to work in Canry Wharf instead of the City, checked with my accountant and their view was NO you can't start claiming expenses again, even though it adds another half an hour to a 45 minute commute. That's a 66% increase in commute and via a different route.

Since then my children in Devon have grown up loads, I bought a house up here and things are totally different.

But Central London and Canary Wharf as far as I'm concerned are too similar a location.

[eek]

Broadgate to Canary Wharf is 3.5 miles according to Google maps which is definately not significant so for me it will not restart the clock.

True but I think a london commute could be seen as a change in location if it forced a change in commute type (say from Train to car).

While a change from Broadgate to Canary Wharf would not be a material change as its commutable by train a change from Broadgate to say Enfield or Barking may be significant.

[northernladuk]

Just jumping into the thread without reading all that preceded this, so I may misunderstanding you. Are you saying people can't work because they can't get tax relief on expensive commuting costs that result from them living very far from where work is?

That's all backwards. Firstly, no-one is supposed to be claiming commuting expenses on an ongoing basis. In theory it is something to be claimed temporarily in special circumstances. (If the letter of the law allows some contractors to claim it more often than not, then lucky them, but I doubt that's what politicians envisaged when they framed the laws.) The general principle is that people are supposed to pay commuting costs out of taxed income. Secondly, if people want to work, it's their responsibility to live within commuting distance of where the work is. I certainly wouldn't vote for someone to receive a public subsidy (which is what tax relief would be) for living further away.

Forgetting the arguments of the implimenation of the the rule I think this is a very good comment on the whole situation. The ability for us to claim commuting is a good bonus but should not be expected. Changing expecations could make the whole thing a lot less painful when 24 months kicks in. It's tough don't get me wrong but I agree with IR35 avoiders comment.

[northernladuk]

It would be from Cambridgeshire, but the journey time would increase by about 25mins and they are a few miles apart.

Broadgate to Canary Wharf is 3.5 miles according to Google maps which is definately not significant so for me it will not restart the clock.

[eek]

It would be from Cambridgeshire, but the journey time would increase by about 25mins and they are a few miles apart.

I think the vast majority of the journey would be the same as surely you would be on the same train to liverpool street / kings cross.

[TeeDeeEye]

It also depends where you set out from. Setting out from say, Manchester, I think you'd be caught because the overall journey isn't significantly different. IMO, of course.

It would be from Cambridgeshire, but the journey time would increase by about 25mins and they are a few miles apart.