IT Contractor help

[pippin123]

Hello,

I've been contracting a few years now and i've never researched it properly till now, just recently my expenses claim has stopped due to the 24 month rule and I can no longer claim expenses with my current umbrella company, they have told me that i won't be able to claim expenses until i get a contract outside the region that i'm in, but another umbrella company has told me that you can claim expenses and all i need to do is change umbrella.

is this true ?

your advice appreciated.

thanks.

[cojak]

Hello,

I've been contracting a few years now and i've never researched it properly till now, just recently my expenses claim has stopped due to the 24 month rule and I can no longer claim expenses with my current umbrella company, they have told me that i won't be able to claim expenses until i get a contract outside the region that i'm in, but another umbrella company has told me that you can claim expenses and all i need to do is change umbrella.

is this true ?

your advice appreciated.

thanks.

The first umbrella is correct. The second umbrella is lying to get your business. They won't be in trouble if HMRC catches you, you will be the one with the fine.

If you don't think that there is much chance of HMRC catching you then you could move anyway.

[tractor]

.....

Hello,

I've been contracting a few years now and i've never researched it properly till now, just recently my expenses claim has stopped due to the 24 month rule and I can no longer claim expenses with my current umbrella company, they have told me that i won't be able to claim expenses until i get a contract outside the region that i'm in, but another umbrella company has told me that you can claim expenses and all i need to do is change umbrella.

is this true ?

your advice appreciated.

thanks.

At what point did you KNOW that you would exceed 24 months?

[Scratch It]

Hello,

I've been contracting a few years now and i've never researched it properly till now, just recently my expenses claim has stopped due to the 24 month rule and I can no longer claim expenses with my current umbrella company, they have told me that i won't be able to claim expenses until i get a contract outside the region that i'm in, but another umbrella company has told me that you can claim expenses and all i need to do is change umbrella.

is this true ?

your advice appreciated.

thanks.

Hi Pippin,

I ask this not to be patronising, but have you considered the financial benefits of contracting through your own limited (assuming your not IR35 caught)? I'm only assuming you havent researched this because you havent researched the 24 month rule.

[pippin123]

At what point did you KNOW that you would exceed 24 months?

Ie because i got extended till 1st of july 2015 they have locked my expenses ie it will be 24 months july 1st.

[TheFaQQer]

Ie because i got extended till 1st of july 2015 they have locked my expenses ie it will be 24 months july 1st.

So you need to stop claiming now, because you know that the place of work is no longer temporary.

As cojak says - the first umbrella is right, the second is lying. The only thing you can do from here is to leave and find another contract in a different location, or stay in the same location and not claim the expenses.

Changing client, umbrella, your name, anything other than the location in which you work will not enable you to claim travel and subsistence expenses any more without incurring a BIK.

[JRCT]

Ie because i got extended till 1st of july 2015 they have locked my expenses ie it will be 24 months july 1st.

If the extension had been offered up to 30th June, would that have been less than 24 months - even by 1 day? If so, then you could have continued claiming.

Someone more knowledgeable than me will say whether or not changing that would be 'ok', but might be worth looking at.

[malvolio]

If the extension had been offered up to 30th June, would that have been less than 24 months - even by 1 day? If so, then you could have continued claiming.

Someone more knowledgeable than me will say whether or not changing that would be 'ok', but might be worth looking at.

Won't work. If the umbrella is even vaguely reputable, they already know the expectation is for longer and they won't want to get involved in what is effectively tax evasion. It's only the personal tax element, not the whole expenses thing, but with an umbrella that makes no effective difference. Another reason to use your own company.

It's a bugger but it's life. People have to live with it until we get the laws changed.

[JRCT]

Won't work. If the umbrella is even vaguely reputable, they already know the expectation is for longer and they won't want to get involved in what is effectively tax evasion. It's only the personal tax element, not the whole expenses thing, but with an umbrella that makes no effective difference. Another reason to use your own company.

It's a bugger but it's life. People have to live with it until we get the laws changed.

Doesn't expectation work both ways though?

If the client 'expects' the work to be required beyond 24 months ie. until 1st July, but the contractor is saying "I will only stay until 30th June and I'm definitely not going to work beyond that date", then surely the expectation is that the contract, and the travel to the temporary workplace, is only until 30th June. Isn't it?

I do understand what you're saying, and I know this is not black and white, but you could extend your arguement further and say that many initial 6 month contracts are offered with the 'expectation' that there's 2-3 years potential work. The one I'm on right now 'could' continue until 2017, but I'm only contracted at the moment until end of March, 2015.

[TheFaQQer]

Doesn't expectation work both ways though?

If the client 'expects' the work to be required beyond 24 months ie. until 1st July, but the contractor is saying "I will only stay until 30th June and I'm definitely not going to work beyond that date", then surely the expectation is that the contract, and the travel to the temporary workplace, is only until 30th June. Isn't it?

I do understand what you're saying, and I know this is not black and white, but you could extend your arguement further and say that many initial 6 month contracts are offered with the 'expectation' that there's 2-3 years potential work. The one I'm on right now 'could' continue until 2017, but I'm only contracted at the moment until end of March, 2015.

Is it reasonable to expect that the work will continue? If so (and in this case I think there is no doubt that it will), then you should stop claiming. Just thinking "this could run for years" wouldn't be a reasonable expectation, though.

If you stop claiming and then they give you notice, you can start claiming again, but you can't back-date the claims unfortunately.