2 years in one contract questions

[NotTelling]

Another post on the 2 year rule thing - I've read the other posts on the board but they haven't really hit the spot for my questions.

My current client has offered me an extension (6 months) that will take me over the '2 years at one site' rule. As I understand it, I won't be able to claim (travelling) expenses any more after the 2 years. However, I've also read that I will be liable for tax on the expenses I've claimed for the past two years - is that correct?

Secondly, I read that if I were to leave for 6 months, I could come back - no questions asked by the IR. Is this correct? Is it 6 months or 40% of 24 months? (which is err, 9-ish months)

Finally, when I originally signed my contract all those months ago, after taking some advice, I beleived I was outside of IR35 (marginally). I didn't expect to be here so long, but this doesn't really help my 'deemed a permanent employee' case much, does it? Does the IR take the 2 year thing into account for IR35?

MTIA...

[cojak]

Oh Dear...

My current client has offered me an extension (6 months) that will take me over the '2 years at one site' rule. As I understand it, I won't be able to claim (travelling) expenses any more after the 2 years.

You are almost right. You are not able to claim expenses from the moment you know the job was going to be more than 2 years . That is when you sign the extension.

The good news however is that you don't have to give your allowances back from the previous 2 years.

Oh, and I would advise a little more research before you post, and don't say you already have - the IR site will be have all this info on it, and that's what the q's about....

[malvolio]

And BTW, duration has nothing to do with IR35. One guys I know of has won the challenge despite having one client for eight years. It's MOO, D&C and Substitution Rights that drive it.

[SAPBoy]

Different client site

MyCo has a contract (thru agency) with a consultancy company who have farmed me out to one of their client's sites. The client's site is the 'based at' on my contract. If after 2yrs I get my contract to say I'm based at a different site (20 mins away), can I still claim T&E?

Thx

[cojak]

*bangs head quietly on table...*

[Newby]

The revenue will be on you like a flash. Any accountant worth his salt will tell you that a small mileage change in the same local area wont constitute a change of location. There are plenty of people who have tried to ignore the 2 year rule and have been stung by HMRC. They just claim it all back plus interest. It doesnt seem worth the risk to me.

[SAPBoy]

Any Guidelines

Are there any guidelines on this? i.e. moving from Manchester to Liverpool (30 miles) etc

Thx

[expat]

Are there any guidelines on this? i.e. moving from Manchester to Liverpool (30 miles) etc

Thx

Is it really a different location?

IMHO if you try to look at it from the point of view of a reasonable person, instead of a barrack-room lawyer wondering if he can get away with shafting the Revenue, you'll probably get the right answer.

[aders]

You are almost right. You are not able to claim expenses from the moment you know the job was going to be more than 2 years . That is when you sign the extension.

I disagree. I've just signed an extension which for sure will take me beyond
the 2 years, but of course it could be terminated at any time, so I don't
*know* that the job will be more than 2 years until 2 weeks (ie the notice
period) beforehand, therfore I'll be carrying on claiming as usual.

[expat]

I disagree. I've just signed an extension which for sure will take me beyond
the 2 years, but of course it could be terminated at any time, so I don't
*know* that the job will be more than 2 years until 2 weeks (ie the notice
period) beforehand, therfore I'll be carrying on claiming as usual.

Do let us know how it goes down with the Revenue. They don't use the word "know", they use the phrase "reasonable expectation concerning how long an employee will work at a place".