Mileage and 24 month rule

[Simonh29]

I am in the last throes of an investigation by the Inland Revenue.
My tax advisor is seriously ill so I need to clarify a point.
I thought that if you were a contractor working through an umbrella company (with contract of employment) then mileage is allowable up to 24 months?
Inspector today brought me up short. Want to pay tax owed but no more. Any help would be greatly appreciated. My stupidity got me into this one!
Note, at the start of the contract, it was not going to last longer than 6 months, as this was when the service compnay contract with the client ended

[Cowboy Bob]

Milage is allowed up until the point where you know that your contract is going to hit 24 months. So if after a year you get another year's extension, you cannot claim milage for that second year.

[ASB]

you might like to review: http://forums.contractoruk.com/threa...-expenses.html

you don't say how long it lasted. If it was < 24 months (or expectaion of 24 months) then the inspectors argument has to be that as an employee of the brolly either you had no permanent workplace or the client was your permanent workplace or trhey worer both a permanent workplace.

TBH if employed via a brolly I've often thought it would be difficult to argue that this was your permanent workplace and that the client site was a temporary workplace.

If there is a reasonable sum at stake and it bothers you I would be veryt cautious about going it alone in any way.

[THEPUMA]

Another important point is that even if you did not anticipate working at that site beyond 24 months, if you do not anticipate having a further temporary workplace with the same employer, then you cannot claim the travel.

So if this was your only contract through the umbrella, you are on a sticky wicket, albeit you could argue that you always thought that you would have another contract but it transpired that you were made an offer by another employer that was too good to turn down.

[Simonh29]

More info

The contract ended after 15 months.
I got caught by an off shore fund deal and I am not disputing this. My own fault. Took contract as I was made redundant. Total tax bill is 17000 but of course this would be reduced if I can claim my mileage by about 4000. Then I would be happy. Just unfortunate that my advisor became ill and I am left to pick up the pieces. I learn quickly and will take out insurance if I contract again. Should point out that at the end of this contract, the client took me on permanently. I was not expecting this.

[VectraMan]

Milage is allowed up until the point where you know that your contract is going to hit 24 months. So if after a year you get another year's extension, you cannot claim milage for that second year.

What happens if you get an extension of 364 days? I assume they'd see through such an obvious scam, but are you completely fine if you say 11 months extension after an initial 12?

[Cowboy Bob]

What happens if you get an extension of 364 days? I assume they'd see through such an obvious scam, but are you completely fine if you say 11 months extension after an initial 12?

Don't see why not.

[pisces]

I always thought you could claim for up to two years regardless. That's what my accountant said

[malvolio]

Get a new accountant then. The rules are very clear

[Bluebird]

surely 2 x 12 month contracts is ok as that is only 24 months not more than 24 months ?