24 month rule

[kingcook]

I find this interesting. I am curious to know the views of contractors on this. If you are in a position where you can negotiate the term of the contract, how much term would you sacrafice to enable more travel claims? For example, if you were to extend from 12 to 23 months instead of 24, do contractors generally consider it a worthwhile risk to sacrafice say, a months income, in order to claim travel for an additional 11 months?

I'm currently in a 12 monther. If offered another 12 months, I would say i'm only available for 11 months, possibly longer after that, and accept the fact that I would be subject to the 24 month rule after those 12+11 months.

I wouldn't, say, agree to a 51 week or 364 day extension as opposed to the 12 months. Too close to the wire IMO! The difference between 11 months and 51 weeks/364 days is negligible anyway.

[cojak]

I accepted a 6 month extension last year knowing that I couldn't claim.

I'm now deliberately taking contracts to keep me out of the London area until May next year (I spent a lovely summer in Yorkshire and am commuting home every night in the current contract so it isn't a hardship).

It's all part of being a contractor.

[ASB]

Martins post of course gives a strong hint as to the dates you might like to be negotiating extension for in order to delay expectation of 24 months being exceeded until the last minute.

Interesting sets of answers. General consensus seems to be not to let the tax tail wag the business dog. Which is a good thing.

The difference in cost isnt that big. After all if spending 1500 on exes its only 300 a month extra in most cases.

Though if I personally were in the position of having large exes and offered say a 12 month extension I might chance it say I can only commit for 6 months.

[GB9]

I find this interesting. I am curious to know the views of contractors on this. If you are in a position where you can negotiate the term of the contract, how much term would you sacrafice to enable more travel claims? For example, if you were to extend from 12 to 23 months instead of 24, do contractors generally consider it a worthwhile risk to sacrafice say, a months income, in order to claim travel for an additional 11 months?

If I were in that situation and, dependent upon the project, I would start looking elsewhere close to the 2 year mark. If I didn't find something else then only at that point would I know that I were to stay over 2 years. Don't know what the ruling would be for that.

Not a problem I have ever had though.

[kal]

How come you actually know what the rule is called but appear to be willing to do even the most basic bit of research so as not to embarrass yourself and maybe even find the answer to your question?

The Expenses section in the links to the right will explain it
Searching the forums will have brought up hundreds of links explaining it
Using google you will find threads explaining it
Asking your accountant would explain it.

It must take time and effort to fail so miserably. Try re-directing that time and effort in to research next time huh.

I'll say it again... jeez

[northernladuk]

hi

i am in a 6 month contract which been extended once and likely to be extended again ( hopefully) but no one knows for sure ...

my question is in regards to expenses and 24 month rules...
if contract is extended agand and again and goes beyond 24 month , lets say 28 month ... will all my past expenses become invalid ?

or its just that i cant claim more expenses from date when contreact goes beyond 24 month until 28th?

thanks

How come you actually know what the rule is called but appear to be willing to do even the most basic bit of research so as not to embarrass yourself and maybe even find the answer to your question?

The Expenses section in the links to the right will explain it - http://www.contractoruk.com/expenses/
Searching the forums will have brought up hundreds of links explaining it - http://forums.contractoruk.com/welco...uk-forums.html
Using google you will find threads explaining it - https://www.google.co.uk/search?q=bo...=24+month+rule
Asking your accountant would explain it.

It must take time and effort to fail so miserably. Try re-directing that time and effort in to research next time huh.

[jmo21]

I find this interesting. I am curious to know the views of contractors on this. If you are in a position where you can negotiate the term of the contract, how much term would you sacrafice to enable more travel claims? For example, if you were to extend from 12 to 23 months instead of 24, do contractors generally consider it a worthwhile risk to sacrafice say, a months income, in order to claim travel for an additional 11 months?

If it was that much time I might consider it, but have never been in that situation.

I'd also be wary of telling the client "I'll extend X - 1 months because I want to be able to keep on expensing mileage". Sounds a bit greedy.

[MyUserName]

I find this interesting. I am curious to know the views of contractors on this. If you are in a position where you can negotiate the term of the contract, how much term would you sacrafice to enable more travel claims? For example, if you were to extend from 12 to 23 months instead of 24, do contractors generally consider it a worthwhile risk to sacrafice say, a months income, in order to claim travel for an additional 11 months?

I was under the impression that irrational and inconsistent dates like this would be inspected carefully by HMRC so make sure you had not just done it for the sake of the 24 month rule. So if you have several 3 monthly extensions and then a 2 month and 3 week one HMRC might call you on it. I suppose the test would be that they would ask the client about the dates and see if they got a valid business reason in reply.

[Martin at NixonWilliams]

Martins post of course gives a strong hint as to the dates you might like to be negotiating extension for in order to delay expectation of 24 months being exceeded until the last minute.

I find this interesting. I am curious to know the views of contractors on this. If you are in a position where you can negotiate the term of the contract, how much term would you sacrafice to enable more travel claims? For example, if you were to extend from 12 to 23 months instead of 24, do contractors generally consider it a worthwhile risk to sacrafice say, a months income, in order to claim travel for an additional 11 months?

[ASB]

Martins post of course gives a strong hint as to the dates you might like to be negotiating extension for in order to delay expectation of 24 months being exceeded until the last minute.

[Martin at NixonWilliams]

hi

i am in a 6 month contract which been extended once and likely to be extended again ( hopefully) but no one knows for sure ...

my question is in regards to expenses and 24 month rules...
if contract is extended agand and again and goes beyond 24 month , lets say 28 month ... will all my past expenses become invalid ?

or its just that i cant claim more expenses from date when contreact goes beyond 24 month until 28th?

thanks

You should cease claiming for travel expenses at the point that you expect to exceed 24 months. Past claims up to this point can still be claimed.

For example - If your contract is for 18 months and after 15 months you are offered a 12 month extension, you should cease claiming from the 15th month onwards as this is the point that the expectation arose.

I hope this helps.

Martin

[kal]

hi

i am in a 6 month contract which been extended once and likely to be extended again ( hopefully) but no one knows for sure ...

my question is in regards to expenses and 24 month rules...
if contract is extended agand and again and goes beyond 24 month , lets say 28 month ... will all my past expenses become invalid ?

or its just that i cant claim more expenses from date when contreact goes beyond 24 month until 28th?

thanks

Jeez...

[namnadasht]

hi

i am in a 6 month contract which been extended once and likely to be extended again ( hopefully) but no one knows for sure ...

my question is in regards to expenses and 24 month rules...
if contract is extended agand and again and goes beyond 24 month , lets say 28 month ... will all my past expenses become invalid ?

or its just that i cant claim more expenses from date when contreact goes beyond 24 month until 28th?

thanks