40%/24 month rule query 40%/24 month rule query
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  1. #1

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    Default 40%/24 month rule query

    Hi
    Would be great if someone could clear up my understanding of this rule for the following scenario:


    A company performs an ongoing assignment for a client under the following circumstances:

    1. Meetings on single client site which he attends usually more than 40% of the time (SITE A)
    2. Very Occasional meetings (negligible %, maybe 3/4 times per year) on separate geographically substantially different site (SITE B)
    3. Mileage claimed on all the above

    If he then starts a new assignment with same client where situation is reversed:
    ie
    3. Meetings on single client site which he attends usually more than 40% of the time (SITE B this time)
    4. Very Occasional meetings (negligible %) on separate geographically substantially different site (now SITE A)

    If this is likely to bring the total period of the assignment with that client to more than 24 months, how does this stand for ongoing mileage expenses?
    Will the 24 month rule be reset when the new assignment starts at site B, given that the company has claimed the odd very negligible travel expense to site B in the past?

  2. #2

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    How many more times....

    a) It's about the journey, not the client and not why you are there

    b) Go to the known (or anticipated) end date of your current gig.

    c) Count back 24 months by the calendar.

    d) If between those two dates you have spent less than 40% of your time at that location, the 24 month rule doesn't apply.

    e) Reassess it weekly in case it changes to over 40%. As soon as it does the 24 month rules will apply.
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  3. #3

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    You could try using the search method as detailed in the Welcome section first. Plenty of discussion on this around.

    This rule has nothing to do with client and is all about location.
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  4. #4

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    Quote Originally Posted by malvolio View Post
    How many more times....

    a) It's about the journey, not the client and not why you are there

    b) Go to the known (or anticipated) end date of your current gig.

    c) Count back 24 months by the calendar.

    d) If between those two dates you have spent less than 40% of your time at that location, the 24 month rule doesn't apply.

    e) Reassess it weekly in case it changes to over 40%. As soon as it does the 24 month rules will apply.
    Could this be made a sticky?
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  5. #5

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    Quote Originally Posted by MyUserName View Post
    Could this be made a sticky?
    Seconded
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  6. #6

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    What is this 24 month rule. Could somebody explain it to me?
    Rule Number 1 - Assuming that you have a valid contract in place always try to get your poo onto your timesheet, provided that the timesheet is valid for your current contract and covers the period of time that you are billing for.

    I preferred version 1!

  7. #7

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    Quote Originally Posted by BoredBloke View Post
    What is this 24 month rule. Could somebody explain it to me?
    Every 24 months, an umbrella company needs to get a new dispensation, which means that you can claim for food you didn't purchase, journeys you didn't make, things you didn't buy and get it all tax free.

    HTH
    Quote Originally Posted by MaryPoppins View Post
    I hadn't really understood this 'pwned' expression until I read DirtyDog's post.

  8. #8

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    Quote Originally Posted by DirtyDog View Post
    Every 24 months, an umbrella company needs to get a new dispensation, which means that you can claim for food you didn't purchase, journeys you didn't make, things you didn't buy and get it all tax free.

    HTH
    Brilliant - where do I sign up. And no doubt they have a fairly official looking page on the internet that states that all of this is above board and HMRC are all tickety boo with it.
    Rule Number 1 - Assuming that you have a valid contract in place always try to get your poo onto your timesheet, provided that the timesheet is valid for your current contract and covers the period of time that you are billing for.

    I preferred version 1!

  9. #9

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    Quote Originally Posted by BoredBloke View Post
    Brilliant - where do I sign up. And no doubt they have a fairly official looking page on the internet that states that all of this is above board and HMRC are all tickety boo with it.
    Absolutely - they can guarantee a return of up to 99% of your gross rate because of the 24 month rule.

    Just send me your bank details and I'll do the rest.
    Quote Originally Posted by MaryPoppins View Post
    I hadn't really understood this 'pwned' expression until I read DirtyDog's post.

  10. #10

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    Quote Originally Posted by malvolio View Post
    How many more times....

    a) It's about the journey, not the client and not why you are there

    b) Go to the known (or anticipated) end date of your current gig.

    c) Count back 24 months by the calendar.

    d) If between those two dates you have spent less than 40% of your time at that location, the 24 month rule doesn't apply.

    e) Reassess it weekly in case it changes to over 40%. As soon as it does the 24 month rules will apply.

    Oh to be blessed with such godlike genius and all encompassing knowledge.....
    I have read lots of threads about this but points c to e explain it well relating to this situation. cheers for the reply!

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