Moving contracting sites - IR35 and mileage implications

**Gonzo** · 12 September 2007, 16:54

Originally posted by mobwell View Post

Hi. I work as a contractor through my own Ltd Co. and outside IR35 and am aware of the 2 year rule as far as being classed as working at a temporary location and the implications thios has on IR35 status. I've been on my current contract for about 16months now and have been claiming mileage allowance from my Ltd company. We are about to move site now to 9 miles away. Still the same comany, but different location. A co-worker suggested the clock rest to time zero as far as mileage claims were concerned, but I'm not sure about this. Does anyone know how this move would affect my IR35 and mileage claim status?

I can't see how it could affect your IR35 status.

As far as the two year rule for travel to a temporary workplace goes, it is the general location that you go to that counts as the workplace, not the company.

However, a rule of thumb is that a new location would have to be 10 miles away from the previous one to count, so bad luck.

HMRC give plenty of examples without actually defining the parameters so it is all a bit speculative. If the new location was in a different town I don't think any questions would be asked, but if it is in the same one they might be.

I am not an accountant though so I would ask yours if I were you.

**mobwell** · 12 September 2007, 19:22

If for the sakes of argument we say the new workplace is greater than 10miles away (I go a completely different direction now) I assume then that my new workplace would be classed as a new temporary workplace and I could claim mileage expenses for a further 2 years. Is this the case? If it is, could I still be classed as being outside IR35 if I had changed the site as described, but my contract (via my Ltd Co.) was still with the same employer and would at some point be extended beyond the 2 year mark?

**Gonzo** · 12 September 2007, 19:31

Originally posted by mobwell View Post

If for the sakes of argument we say the new workplace is greater than 10miles away (I go a completely different direction now) I assume then that my new workplace would be classed as a new temporary workplace and I could claim mileage expenses for a further 2 years. Is this the case? If it is, could I still be classed as being outside IR35 if I had changed the site as described, but my contract (via my Ltd Co.) was still with the same employer and would at some point be extended beyond the 2 year mark?

1. I don't know for sure about the 10 miles, it is not explicitly defined in the HMRC guidance, but if it counts as a new temporary workplace then the 2 year clock is reset. See what your accountant says.

2. Time makes no difference to IR35 status, you could have a ten year contract that is outside IR35, equally you could have a one week contract that is inside IR35.

**RSoles** · 12 September 2007, 21:04

Yep, 24-month rule and IR-35 are independent of each other.

I've had two different accountants mention the 10-mile limit for the 24-month rule.
......for what it's worth....
RS

Moving contracting sites - IR35 and mileage implications