Reply to: Two year rule on expenses when working 75% from home and/or IR35?

[northernladuk]

I've answered this question a hundred times already, just thought I'd take a different approach for once.

Anyone else asks, I'm going to point them to the definitive answer at Malvolios Blog » What

LOL I know you have and I know what you meant, just thought in this case the OP might not as you can see.

[malvolio]

Yes you did. I think there were much better ways of putting this.

I've answered this question a hundred times already, just thought I'd take a different approach for once.

Anyone else asks, I'm going to point them to the definitive answer at Malvolios Blog » What

[northernladuk]

Yes. As long as they are at the end of significantly different journeys to get to them both.

Or did I just confuse things again...?

Yes you did. I think there were much better ways of putting this.

[MugsGame]

I see what you're saying. I think. The offices are generally in different places in London and in the Midlands so I hope(!) that counts as significantly different journeys.

[malvolio]

I very much appreciate the responses.

One more point of clarification: I'm doing work, through my Ltd Co, for a consulting company who have offices (naturally) and I sometime work from their offices. I also work onsite at this consulting company's clients. I assume that both locations count towards the 40%?

Many thanks.

Yes. As long as they are at the end of significantly different journeys to get to them both.

Or did I just confuse things again...?

[MugsGame]

I very much appreciate the responses.

One more point of clarification: I'm doing work, through my Ltd Co, for a consulting company who have offices (naturally) and I sometime work from their offices. I also work onsite at this consulting company's clients. I assume that both locations count towards the 40%?

Many thanks.

[Pondlife]

How is that 40% worked out though? 40% of the day, so if you are only on site during normal office hours (~8 hours) you'll always be outside the rule!?

Or is it 40% of the working week (5 days) rather than 40% of the full week?

Or 40% of your time worked over a week, month, or longer?

If any of the info linked to explains this in sufficient detail (assuming HMRC have not been typically vague on the 40%) please clarify.

taken as 40% or more of the employee's working time

[malvolio]

Sigh...

It's on the HMRC website.

But given a 40 hour week, if you are consistently only physically on site for no more than 16 hours, the client site is never going to be a permanent workplace so the 24 hour rule cannot be applied to it.

But like the 24 month rule itself, you should look at the accumulative position, i.e from the start of the contract to the currently-known end of the contract.

[PAH]

less than 40% of your time on client site means the two year rule will not apply

How is that 40% worked out though? 40% of the day, so if you are only on site during normal office hours (~8 hours) you'll always be outside the rule!?

Or is it 40% of the working week (5 days) rather than 40% of the full week?

Or 40% of your time worked over a week, month, or longer?

If any of the info linked to explains this in sufficient detail (assuming HMRC have not been typically vague on the 40%) please clarify.

[malvolio]

You're a gent. I will read up some more but would still value any advice.

You just got it. Do pay attention.

In words of two syllables or less: less than 40% of your time on client site means the two year rule will not apply. IR thirty five takes no notice of how long your contract is.

HTH. I fear it may not.

[northernladuk]

i don't see why not. They will explain the cut off is 40 percent so he can work out if it counts to him. It may also help understand the difference between him claiming expenses form his LTD and him billing his client for it so it isn't an expense.

[d000hg]

In fact have em all...

Google search to 923 pages on 24 month rule from contractor UK

38000 pages on IR35 from contractor UK

IR35 on Google

24 Month Rule on Google.

Somehow I doubt the guides focus specifically on working part time, and most of that time at home. Hence the need for a thread to ask how things stand in this atypical scenario.

[MugsGame]

You're a gent. I will read up some more but would still value any advice.

[northernladuk]

Just found the 2 Year Master Thread which I'm ploughing through. I tried the search but didn't find anything conclusive - your thoughts still appreciated!

Concentrate on the number 40% when you see it....

and IR35 isnt affected by two years but sounds a bit of a brush up on it wouldn't go amiss!!

[northernladuk]

In fact have em all...

Google search to 923 pages on 24 month rule from contractor UK

38000 pages on IR35 from contractor UK

IR35 on Google

24 Month Rule on Google.