Travel taxability

[thunderlizard]

That's annoying: contract + extensions looked like it was going to run for a couple of years but didn't, due to me being a prima donna and getting a better offer. Turns out that, like our Dymphna, I have to pay personal tax on the not inconsiderable travel expenses after all.

From IR helpsheet number 490

Example
Dymphna has worked for her employer for 3 years and is sent to perform full-time duties at a workplace for 28 months but the posting is unexpectedly ended after 18 months. No relief is available for the cost of travel between her home and the workplace, because her attendance is expected to exceed 24 months (though in fact it does not). The workplace is therefore a permanent workplace and the journey is ordinary commuting.

Fecckerse.

tl

[AtW]

From IR helpsheet number 490

taxsh*t

[TheFaQQer]

Did you expect it to run for that long, though? If you have nothing in writing that indicates that, how could anyone prove that you thought it would last over two years.

Unless of course you posted it in a forum

[thunderlizard]

It is in writing as it happens, i.e. it's included in the declared figure on the p11d this summer.

Anyway even if it wasn't, lies make Baby Jesus cry.

[TheFaQQer]

It is in writing as it happens, i.e. it's included in the declared figure on the p11d this summer.

Anyway even if it wasn't, lies make Baby Jesus cry.

Heaven forbid I was suggesting you lie - it was more of a general question. At what stage does a vague expectation become the point where HMRC says you can't charge travel expenses? I'm on a 6 month contract on a public sector project, and have already been told that it will probably be a year. If it's on time, there then follows a nine month roll-out.

So, when the project slips, at what point do I know that I will be working there for more than two years? The cynic in me says that HMRC could "suggest" to all public sector projects that they offer a 2 year contract (or enough documentation to argue that it's not a temporary place of work) and then terminate them when they don't need people - bingo, no expenses allowed = more tax revenue.

The flaw in that plan is relying on them to terminate the contracts, plus it requires some degree of joined-up thinking.

[NotAllThere]

I'd only consider that a contract was going to last more than 2 years once I had a contract (extension) that took me over the 2 year boundary.

Until then, the contract may go beyond 2 years, but I have no expectation either way.

[xoggoth]

Agree with last. I doubt that something as vague as being told there was work for over two years if you wanted is the same as a definite expectation. The example was an employee, but think there is a real difference being a contractor here as they have the option to go elsewhere every renewal and it is one that is frequently exercised.

[TheFaQQer]

I'd only consider that a contract was going to last more than 2 years once I had a contract (extension) that took me over the 2 year boundary.

Until then, the contract may go beyond 2 years, but I have no expectation either way.

Congrats on that being your 500th post!

[moorfield]

This 2 year rule has always seemed a complete subjective farce to me.

Has HMRC ever tried to do anyone for breaking it (and won) ?

Consider for example ...
(1) if I'm working under contract on a week's notice (or less) then why can't I argue that I don't "know" if'll be there until 1 yr 51 weeks
(2) if I buy and claim in full an annual travel card 3 months before I "know" I'll be working somewhere 2+ yrs then what's the rule

[AtW]

(1) if I'm working under contract on a week's notice (or less) then why can't I argue that I don't "know" if'll be there until 1 yr 51 weeks

It is a matter of probabilities. Let's say first number below would be week number, and second number will be 1 if you still work there, and 0 if you got fired. So for the first 52 weeks we will get the following sequence:

1: 1
2: 1
3: 1
4: 1
...
52: 1

Given that historical information would you not think that week 53 will also be 1? Unless you have got exact end date (like a year) you can't really say that you think you will be fired on that week or any subsequent weeks up to 1 year and 51 weeks.