Two year rule on expenses when working 75% from home and/or IR35?

[MugsGame]

I've been working 3-4 days a week for a company through my Ltd Co for two years. I work at least 75% at home (it varies depending on the project) with a client visit in London a couple of times a month. When I go over the two years, does the two year rule on expenses still apply as I work from home most of the time? Can I still re-bill travel/subsistence expenses to my client and claim them from my Ltd Co, assuming my level of travel stays roughly the same?

Also, I had previously assumed that working for more than 2 years for a company meant that you increased your chances of getting got by IR35 as you were deemed a permie by HMRC. Is this really the case or have I made that up? I believe my contract falls outside of IR35 currently (whether HMRC would agree I don't know)

MTIA

Just found the 2 Year Master Thread which I'm ploughing through. I tried the search but didn't find anything conclusive - your thoughts still appreciated!

[northernladuk]

I've been working 3-4 days a week for a company through my Ltd Co for two years. I work at least 75% at home (it varies depending on the project) with a client visit in London a couple of times a month. When I go over the two years, does the two year rule on expenses still apply as I work from home most of the time? Can I still re-bill travel/subsistence expenses to my client and claim them from my Ltd Co, assuming my level of travel stays roughly the same?

Also, I had previously assumed that working for more than 2 years for a company meant that you increased your chances of getting got by IR35 as you were deemed a permie by HMRC. Is this really the case or have I made that up?

MTIA

Have a look at the guides to the right hand side before asking questions please. The answer to all your questions (which have been asked a shed load of times before despite being in the guides) will be answered there.

And just to show I am a really a nice helpful chap here they are for you in case you struggle to navigate menus

IR35 Legislation - Advice, Help and Information for UK Contractors

Contractor Expenses - How and what to claim via Limited Company or Umbrella &
24 Month Rule :: Contractor UK

[northernladuk]

In fact have em all...

Google search to 923 pages on 24 month rule from contractor UK

38000 pages on IR35 from contractor UK

IR35 on Google

24 Month Rule on Google.

[northernladuk]

Just found the 2 Year Master Thread which I'm ploughing through. I tried the search but didn't find anything conclusive - your thoughts still appreciated!

Concentrate on the number 40% when you see it....

and IR35 isnt affected by two years but sounds a bit of a brush up on it wouldn't go amiss!!

[MugsGame]

You're a gent. I will read up some more but would still value any advice.

[d000hg]

In fact have em all...

Google search to 923 pages on 24 month rule from contractor UK

38000 pages on IR35 from contractor UK

IR35 on Google

24 Month Rule on Google.

Somehow I doubt the guides focus specifically on working part time, and most of that time at home. Hence the need for a thread to ask how things stand in this atypical scenario.

[northernladuk]

i don't see why not. They will explain the cut off is 40 percent so he can work out if it counts to him. It may also help understand the difference between him claiming expenses form his LTD and him billing his client for it so it isn't an expense.

[malvolio]

You're a gent. I will read up some more but would still value any advice.

You just got it. Do pay attention.

In words of two syllables or less: less than 40% of your time on client site means the two year rule will not apply. IR thirty five takes no notice of how long your contract is.

HTH. I fear it may not.

[PAH]

less than 40% of your time on client site means the two year rule will not apply

How is that 40% worked out though? 40% of the day, so if you are only on site during normal office hours (~8 hours) you'll always be outside the rule!?

Or is it 40% of the working week (5 days) rather than 40% of the full week?

Or 40% of your time worked over a week, month, or longer?

If any of the info linked to explains this in sufficient detail (assuming HMRC have not been typically vague on the 40%) please clarify.

[malvolio]

Sigh...

It's on the HMRC website.

But given a 40 hour week, if you are consistently only physically on site for no more than 16 hours, the client site is never going to be a permanent workplace so the 24 hour rule cannot be applied to it.

But like the 24 month rule itself, you should look at the accumulative position, i.e from the start of the contract to the currently-known end of the contract.