• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Contract at same site approaching 2 years...

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Contract at same site approaching 2 years...

    I've been contracting at the same site (2 contracts of different lengths and rates) over the past 18 months using an umbrella company. When the 2 years is up I'm told my umbrella company account will be frozen cos of the tax schedule E situation?

    Does anybody know how many weeks I need to be out of contract for before I can start a new contract at this site and re-activate my account?

    Can anybody offer me any advice?

    I hope than makes sense!

    Thanks
    Last edited by Hoff; 5 May 2006, 22:53.

    #2
    I assume this account is frozen due to the two year rule that say you can't claim travel and accomodation after that period.

    In which case it should be 14.4 months = 60% of 2 years. The IR uses a combination of the two year rule and the 40% rule.
    bloggoth

    If everything isn't black and white, I say, 'Why the hell not?'
    John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

    Comment


      #3
      You seem to be under the impression you have to stop working for the client. You don't, you just won't be able to claim travelling or accomodation expenses against tax any more.

      It seems a bit strange that your umbrella talk about the account being "frozen" which suggests they won't pay you anything. Time to clarify that, or just ditch them and start your own Ltd.
      Will work inside IR35. Or for food.

      Comment


        #4
        Maybe Starting your own company would get aroung this...

        As you would be techically working for a different company - worth checking out with an accountant type bod.
        Throw them to the lions - WC2 5.4

        Comment


          #5
          Originally posted by wc2
          Maybe Starting your own company would get aroung this...

          As you would be techically working for a different company - worth checking out with an accountant type bod.
          I think you'll find that this is down to your personal tax situation, and so is nothing to do with what company you work for. But IANAL or AA.
          Will work inside IR35. Or for food.

          Comment


            #6
            and it starts when you know you'll be there 2 years

            You have to stop claiming expenses as soon as you are aware that you will be there 2 years (or thats how I understand it)

            Comment


              #7
              Originally posted by wc2
              Maybe Starting your own company would get aroung this...

              As you would be techically working for a different company - worth checking out with an accountant type bod.
              Doesn't matter. The rules are based on rough location, not client. For example, if you contract in the square mile it all counts as one continuous period, even if you work for half a dozen different clients.

              Comment


                #8
                Thanks for all your comments - I think the managed limited company is probaby the best route.

                Really the place I work for should offer me a permanent job if I'm there for more than 2 years.... won't happen though. They 'force' people to take 3 weeks break to sort it.

                Comment


                  #9
                  Originally posted by Lucifer Box
                  Doesn't matter. The rules are based on rough location, not client. For example, if you contract in the square mile it all counts as one continuous period, even if you work for half a dozen different clients.
                  Yes if you go from one client to another while still working for the same employer, however that's not what's being suggested. I have heard that if you switch employers (e.g. different umbrella or PSC) while staying at the same site that resets the clock. i.e. the rules relate to how long you've worked for a particular employer at a location (where a location can mean a whole area, as you pointed out.) If you change employer or location then you can start again.

                  Having said that, I've never claimed travelling expenses, my advice is worth what you paid for it, and I wouldn't be brave enough to take advantage of such a blatant loophole, if it really exists.

                  Comment


                    #10
                    Originally posted by IR35 Avoider
                    I wouldn't be brave enough to take advantage of such a blatant loophole, if it really exists.
                    It doesnt. It isnt a company thing its a personal thing

                    Comment

                    Working...
                    X