Evening everyone. New to contracting......

[Ashley01]

Evening everyone. New to contracting......

"Boomed" is the traditional title posted in the General forum when a contractor lets us know they have secured a new contract. Tradition then dictates that we bestow many dancing bananas upon the successful contractor. You will not see the bananas on the app unfortunately. Have one for getting the 2 year gig

Meant to ask, are you offshore? My bro works in the industry and and tax can be a bit of a fiddle...

I understand now. Thanks for the

Ash!!

Edit: Nope, onshore.

[Ashley01]

Engineering contractors apparently appear to be a different breed from most IT contractors. They can end up in companies for longer than most permies. 99% wouldn't know IR35 if it came and bit them on the arse and the 1% that do sneer and laugh at it.

They also appear to be the guys keeping the EBT's in fresh meat.

I'm a little aware of IR35 as I've been working through an umbrella company and I've read about it in parts.

I will attempt to read a lot more as I press go for the ltd. company option.

Cheers.

Ash!!

[Ashley01]

Also 2 year gig means no expenses....

How do you mean?

I will be incurring expenses on a daily basis.

Is there a ruling that the offer of a certain length of contract removes the right to claim expenses?

Cheers

Ash!!

[stek]

How do you mean?

I will be incurring expenses on a daily basis.

Is there a ruling that the offer of a certain length of contract removes the right to claim expenses?

Cheers

Ash!!

Yes, as soon as you know it's 24 months you are supposed to relocate! Google the site for 24-month rule...

[Ashley01]

Yes, as soon as you know it's 24 months you are supposed to relocate! Google the site for 24-month rule...

Ok thanks. I was aware of this rule. Although from a different angle.

I was under the impression that if you exceed 2 years on one contract location you are then expected to relocate. This is how my umbrella company explained it to me.

"- If a person is engaged on a contract that will last less, or is expected to last less, or it is reasonable to assume that it will last less than 24 months, the 24 month rule is not broken.

- If the length of the contract is uncertain then the claim should qualify until 24 months is reached when, as from that date, the claim will fail.

- If the length of the contract is expected to be less than 24 months and then something changes and the contract is then expected to last more than 24 months then the claim fails as from the date of the change.

- If the length of the contract is expected to be more than 24 months and then something changes and the contract is then expected to last less than 24 months then the claim is allowable as from the date of the change."

I took the above points from the site info. I don't expect the contract to last any longer than 24 months. So therefore I should be ok?

Cheers.

Ash!!

[Craig at Nixon Williams]

I took the above points from the site info. I don't expect the contract to last any longer than 24 months. So therefore I should be ok?

The 24 month rule will only apply if you expect to be on the site for more than 24 months – therefore if you do not expect it to cross 24 months then you will be able to claim.

If the length of the contract is uncertain then the claim should qualify until 24 months is reached when, as from that date, the claim will fail.

This bit isn't right - it is about when you expect to be working at a location. If it is uncertain how long you will be there, there will come a point when you expect to be at a location for more than the 24 months.

[TheFaQQer]

The 24 month rule will only apply if you expect to be on the site working in the same location for more than 24 months – therefore if you do not expect it to cross 24 months then you will be able to claim.

FTFY - you may be in the same location but on different premises for different clients and still fall foul of the 24 month rule.

[Craig at Nixon Williams]

FTFY - you may be in the same location but on different premises for different clients and still fall foul of the 24 month rule.

Quite right! For the benefit of the OP, TheFaQQer is referring to the fact that you could work at several sites for several clients and HMRC could deem that to be a single geographical location. A good example of this is people working for several different banks within the same square mile of the city of London – HMRC would class this as a single location for the purpose of this test.

I should add that HMRC do not actually define how close the places need to be for them to deem it a single location.

Craig

[Ashley01]

Fair one chaps.

This new contract is a change of location from where I am now and I dont expect to be working at that site after 24 months.

Cheers.

Ash!!

[kaiser78]

Yes, as soon as you know it's 24 months you are supposed to relocate! Google the site for 24-month rule...

Just to clarify I thought if it was more than 24 months the rule kicks in. If the role is for 24 months then OP would be able to claim expenses.