24 month rule

[psychocandy]

Got me thinking. I know it covers location and not client i.e. you cant work at two different clients in same place and say its different.

What about breaks in between? Does it all reset to 0?

For instance, in my case,

Client 1 - 3 months - city A
Client 2 - 8 months - city B (completely different direction/mode of travel)
Client 3 - 4 months (and counting) - back to city A.

Does 24 months start at beginning of client 1 or does it reset for client 3 because of gap? Hmmmmm

[Alan @ BroomeAffinity]

There is no defined length of time you must be away from a location before you can return and start claiming expenses again. So, provided you are satisfied that there has been a significant location change, then one must revert back the application of the 40% rule over the last 2 years. So, when you return to location 1, count back 24 months from that date and if, in total, you have spent less than 40% of your working time there, then you can start to claim travel expenses again. Practically, this means that you need to have been working elsewhere for 14.4 months in the last two years before the expenses can be claimed again.

[stek]

Better read up on the 40% rule, basically it's 14.4 months before the clock is reset I think.

[Kenny@MyAccountantFriend]

This is currently untested however part of the 24 month rule is a 40% test in that if you spend less than 40% of your time at a client you are not subject to the 24 month rule.

As such if you apply 40% to 24 months you get 9.6 months gap to reset.

Others would say that a gap of 6 months (possibly less) would be long enough to reset the counter for you.

In your example you would be no where near 24 months at present so wouldnt apply till you receive a contract for a longer period.

[psychocandy]

Hmmm. Complicated.

So potentially, after

Client 1 - 3 months (location A)
Client 2 - 8 months (location B)
Client 3 - 13 months (location A)

Then out of those 24 months, more than 40% was spent at location A. (i.e. 16 out of the 24 months).

Or you could say 8 months at location B reset things.....

[psychocandy]

There is no defined length of time you must be away from a location before you can return and start claiming expenses again. So, provided you are satisfied that there has been a significant location change, then one must revert back the application of the 40% rule over the last 2 years. So, when you return to location 1, count back 24 months from that date and if, in total, you have spent less than 40% of your working time there, then you can start to claim travel expenses again. Practically, this means that you need to have been working elsewhere for 14.4 months in the last two years before the expenses can be claimed again.

One approach I guess. In that case, since stint 1 was only three months then its never going to be more than 40% in any two year period.

[fidot]

Read the sticky above

See http://forums.contractoruk.com/accou...-nutshell.html

which says

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.

[Kenny@MyAccountantFriend]

See [url]

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

This part would be incorrect as it would be when any contract extension is signed not assessed weekly.

[malvolio]

Not complicated, not ambiguous, not open to interpretation, not susceptible to N months' gaps...

Read the first post in the sticky.

[psychocandy]

OK this is making my head hurt now....

What about this.

Example 1

Gig 1 (loc A) - 3 months
Gig 2 (loc B) - 8 months
Gig 3 (loc A) - contract agreed up to 12 months.

Still only 23 months so still ok.

Example 2

Gig 1 (loc A) - 3 months
Gig 2 (loc B) - 8 months
Gig 3 (loc A) - contract agreed up to 15 months.

So in last 24 months, 16 months in loc A (15 plus 1 from Gig 1), 8 months location B. Sorry over 40% cant claim.

Example 3

Gig 1 (loc A) - 3 months
Gig 2 (loc B) - 8 months
Gig 3 (loc A) - contract agreed up to 18 months.

So in last 24 months, 18 months in loc B, 6 months location B. But now surely since Gig 1 has slipped out of the 24 months its no longer relevant (as in example 1). So now we can claim again?

Would be same again for extension up to 21 months. But then not for 24.