Reply to: 24 Month Rule

[OwlHoot]

moving home doesn't seem to count, moving offices significantly does.

OK, so you could take monday-to-friday lodgings and every two years swap your registered office from home to there, and then claim your home is technically your workplace and you just visit clientco a few days a week, or something like that.

[vetran]

Right, so if I live 20 miles from my work location I claim travel expense for upto 24 months.

Or until you know it is a permanent workplace or 24 months whichever is sooner. which is why you might sign up for 12 months and 11 months 27 days. Then consider another contract, diversify or take the hit

moving home doesn't seem to count, moving offices significantly does.

[OwlHoot]

The additional payment for the first 10,000 miles reflects the expenses of keeping a car... Once you hit 10,000 miles supposedly those servicing costs have been covered so what's left is supposed to cover fuel and not those other expenses.

That crossed my mind, but it seems a specious argument. After all, if the per mile payment is supposed to cover fuel and servicing then the mileage should be immaterial because the more miles one does the more the car will need servicing or even replacing.

[GlenW]

Looks like I'm going to have to fund the Quattroporte all by myself then.

[TheFaQQer]

If the journey is different, then I don't see why you cannot reset the clock. Maybe one for the accounting forums where an accountant might look at it?

Don't know what I was thinking when I wrote that.

No, you don't claim it. Nice thinking, but it wouldn't reset the clock.

[eek]

Interesting. On a related note, anyone know the reasoning for capping the top rate mileage allowance at 10,000 miles, with only a reduced rate claimable for any extra miles?

I'm guessing it is a similar principle, i.e. to discourage people from needlessly travelling large distances when they could be expected to move closer to their work.

The additional payment for the first 10,000 miles reflects the expenses of keeping a car... Once you hit 10,000 miles supposedly those servicing costs have been covered so what's left is supposed to cover fuel and not those other expenses.

[OwlHoot]

It's all about the destination, not the journey. The argument being that as this is a temporary place of work YourCo is entitled to put your travel expenses as company expanses for tax purposes in the first 24m after which it's no longer considered a temp work place,

Interesting. On a related note, anyone know the reasoning for capping the top rate mileage allowance at 10,000 miles, with only a reduced rate claimable for any extra miles?

I'm guessing it is a similar principle, i.e. to discourage people from needlessly travelling large distances when they could be expected to move closer to their work.

[Batcher]

Out of curiosity were they successful in the argument?

It was never established who was correct in that particular argument as it was mainly about my contracts/working practises. They had just thrown that nugget into the mix along with questioning other expense claims.

I guess they were unsuccessful overall as I didn't have to pay anything back to them for any of the claims they made.

OT - One was for a meal I paid for down near Sheffield. We used to go out together as a group for evening meals and one would pick up the tab in turn. HMRC demanded to know who was all present so they could check who benefitted from my generosity (it had gone through the accounts as entertainment - networking is an important part of gaining new business). I said I didn't want to name them as it would trigger IR35 investigations into their companies so I would take the hit and pay the money back. I didn't hear anything more about it after my case was dropped so didn't have to pay the money back.

[BolshieBastard]

Right, so if I live 20 miles from my work location I claim travel expense for upto 24 months.

I stay working in the same location and move home to the other side of my work location which is also 20 miles (home to office) and people think you can reset the travel expenses clock just because you're going, say east to west instead of west to east?

No, I dont think so. In fact I know so.

But as long as you dont get caught, you've only your accountant to convince.

[tractor]

...

works for public sector workers.

But they are very different because we are all in this together (tm)

[sal]

It's all about the destination, not the journey. The argument being that as this is a temporary place of work YourCo is entitled to put your travel expenses as company expanses for tax purposes in the first 24m after which it's no longer considered a temp work place, YourCo can keep reimbursing you for them but they won't be exempt from tax making it pointless.

Changing your home (which in most cases is considered your permanent place of work) doesn't change the status of your temp workplace if it remains the same for over 24h you can no longer benefit from claiming travel expenses.

That's my understanding apart from the 2 mile thing. The Square Mile rule is all about the destination. If you move your office location you are still claiming to go to the same clientco or another clientco in the same area.

In my IR35 investigation I had a 3 month break between contracts and the physical distance between two clientcos was 4 miles but HMRC tried to argue the Square Mile rule still applied as it was the same general area.

Out of curiosity were they successful in the argument?

[Batcher]

Sounds very reasonable; but I vaguely recall the rule was based solely on the destination, regardless of clientco, and that only a change in that of at least two miles resets the clock.

That's my understanding apart from the 2 mile thing. The Square Mile rule is all about the destination. If you move your office location you are still claiming to go to the same clientco or another clientco in the same area.

In my IR35 investigation I had a 3 month break between contracts and the physical distance between two clientcos was 4 miles but HMRC tried to argue the Square Mile rule still applied as it was the same general area.

[kingcook]

You can wait 24 months - that will reset the clock.

[OwlHoot]

If the journey is different, then I don't see why you cannot reset the clock. Maybe one for the accounting forums where an accountant might look at it?

Sounds very reasonable; but I vaguely recall the rule was based solely on the destination, regardless of clientco, and that only a change in that of at least two miles resets the clock.

[GlenW]

There is no rule. You work anywhere you want for as long as you want until your caught.

you're