2 Years at same client

[n3il123]

I have been working at my current client site for nearly 2 years now (my current contract expires at the 2 year marker)... however I have checked the project plan and seen that there is a fair chance that I am going to be asked to extend.

I understand that when you have been at the same client for 2 years (or know that you are going to be) then you are unable to claim expenses... now this is not good as I have fairly high monthly expenses (rail tickets travel to other sites etc) is there anyway that this implication can be avoided? severing contracts? time off etc?

I would appreciate advice from any of you that have had experience of this

[The Lone Gunman]

Usual provisos (not legal etc).

There is no real way around this.
Once you have been at a client site, or know you will be, beyond 2 years then you can not claim expenses.

I suspect that if you were to start up another Ltd. then you might get away with it, but it seems impractical.

You are going to have to walk away, get your rate up to negate the loss or wear it.

[boredsenseless]

And in the letter of the law its actually worse as the definition is locality not location. Therefore in theory if you got a new contract at another company just down the road the two year timeline would still be in force.

There is nothing to stop your limited continuing to cover your travel etc, they just can't claim back the corp tax on it.

The other issue is that you as an individual receiving travel payments after the two years is a benefit in kind and would still apply even if you moved companies.

[n3il123]

Ok so how would it work if I was to miss out my agency and go direct (which is totally unethical I know) so that my contract is with the client and not the agency, and then have my base as another office (they have several) or my house? would that work or am I as it seems totally stuffed?

Also is there a limit when I can go back to this client? i.e. one month, two months etc?

Any help as before greatfully accepted..

[Rebecca Loos]

wouldn't make any difference, it's you who's claiming travel expenses, not the agency - it's you who's filing a tax return, so as far as HMRC is concerned, whether you go direct or thru a company, it's the same thing, and you are the same individual.

[ASB]

Travel between sites is still claimable. Travel to the site MAY be claimable depending upon youe normal place of work. Check IR480 - but it is not likely to be claimable.

Talk to your accountant.

[Bagpuss]

We have people on this site still claiming after 4 years!
The knowledge of contracting tax issues is surprisingly v poor

[Rebecca Loos]

or surprisingly rich if they can get away with it after 4 years....

[boredsenseless]

Of course if your company actually pays the travel via a company debit card you haven't actaully claimed the travel as an individual.

You just haven't made your air miles on your private credit card

[ASB]

I managed 12 years claiming.

And the taxman raised no eyebrows during an investigation. However, he did accept that my normal place of work was my home office.