Reply to: 24 month rule and work place

[malvolio]

Thank you. I will try to see if the Client will pay directly for the accommodation as this is the most significant cost. I will take a 'hit' on the travel cost if I can get them to agree to this.

Be a bit careful about how you do that. You are not losing the ability to charge expenses to YourCo, only the personal tax relief on such costs. Asking for the full cost of the accommodation will be seen as unrealistic when in reality your costs are only going up by around 20%.

And just as a cautionary note, the usual response is along the lines of "You quoted us a rate for the job, so it's your risk if your expenses have gone up". Think about how you would counter that argument.

[LuckyLen]

Ask Client to pay your accommodation for you directly and reduce your weekly invoice by that amount

Thank you. I will try to see if the Client will pay directly for the accommodation as this is the most significant cost. I will take a 'hit' on the travel cost if I can get them to agree to this.

[Batcher]

For London generally, I've seen it expressed as travel to the nearest mainline railway station to determine the journey.

My IR35 investigation was based around travel to Edinburgh

[malvolio]

It's also the general direction of travel that is taken into account along with the square mile rule.

For London generally, I've seen it expressed as travel to the nearest mainline railway station to determine the journey.

[Batcher]

There is no hard and fast rule. The general guidance is that for it to be considered a "new" workplace, there should be a significant change to the journey time and/or cost. Distance is not the only indicator (see the classic "bridge" example where a worker needs to work at the other end of a bridge - relatively close but involving a more costly and lengthy journey).

It's also the general direction of travel that is taken into account along with the square mile rule.

[vwdan]

Didn't say you should, just pointed out that it's probably not the biggest risk a contractor needs to be worrying about.

The problem with this attitude is you shouldn't mix up the risk of being investigated next month (small) with the risk of being investigated over the course of your career (not so small).

[GhostofTarbera]

Ask Client to pay your accommodation for you directly and reduce your weekly invoice by that amount

[TwoWolves]

Can be triggered for any number of flags. Doesn't mean you can be slap dash with your accounts. You'll only be getting away with it until you aren't so why not do it properly.

Didn't say you should, just pointed out that it's probably not the biggest risk a contractor needs to be worrying about.

[northernladuk]

Well I think you've said it... "In an investigation" and that is quite a rare event that would only normally be triggered if you took the piss.

Can be triggered for any number of flags. Doesn't mean you can be slap dash with your accounts. You'll only be getting away with it until you aren't so why not do it properly.

[TwoWolves]

In an investigation they come and go through everything with a fine toothed comb. They'll find out.

Although that is interesting. As far as I can remember every single gig of mine has had the cliebt location on the contract. For the reason above I don't see any advantage of having it removed though.

Well I think you've said it... "In an investigation" and that is quite a rare event that would only normally be triggered if you took the piss.

[northernladuk]

I don't believe my accounts list the locations of my clients. Even contracts specify the legal office address of the client and not their actual business office.

In an investigation they come and go through everything with a fine toothed comb. They'll find out.

Although that is interesting. As far as I can remember every single gig of mine has had the cliebt location on the contract. For the reason above I don't see any advantage of having it removed though.

[Mordac]

I don't believe my accounts list the locations of my clients. Even contracts specify the legal office address of the client and not their actual business office.

If you're claiming mileage or rail/air fares they will spot a location pattern immediately. Just to be clear, what is in your accounts or your contracts will have little or no significance when it comes to personal expense claims.

[TwoWolves]

I don't believe my accounts list the locations of my clients. Even contracts specify the legal office address of the client and not their actual business office.

[Mordac]

Just checking something. You know you have to stop when you KNOW you are going over the 24 months? So if the last 3 month extension takes you to 24 months and a day you can't claiming anything during that 3 monther?

WHS. An HMRC bod once told me their rule of thumb tends to be postcode based (as in, if your place of work is in the same postcode district as your last place of work, they treat your expense claims as if you haven't actually moved). And they treated London postcodes as one. That was almost 20 years ago, and was only one person's opinion. AFAIK, there's no absolute rule, so they're free to disallow whatever they wish on whatever whim they choose. The only safe option is not to put yourself in a position whereby they can disallow your claims, and that may well involve taking a long break from the client and/or location.

[northernladuk]

Just checking something. You know you have to stop when you KNOW you are going over the 24 months? So if the last 3 month extension takes you to 24 months and a day you can't claiming anything during that 3 monther?