24 Month Rule

[ribble]

Isn't it an unfair to the people that live so far away from London, that London becomes a permanent work place?

I've just recalculated my accounts on not taking expenses as I have gone over two years in Jan 2013.

So now paying all my expenses via DLA then dividends.

Its a bit of a b*tch as I have about £1500 expenses a month and now have to pay higher rate on them. I have a flat in London which is purely for business reasons - but have now been advised that as I sleep there it has duality of use.

No specific questions as such just wondered does anybody else have any views/experiences on this?

Rib

[northernladuk]

Life is unfair......

The 2 year rule is to help people with relocating and was decided 2 years is more than enough time to decide if you are going to relocate. It isn't a free for all to get tax free travel for ever. The rule wasn't really designed for the way we work hence all the grey areas and confusion.

Just to point out... You have to stop claiming when you KNOW you are going to be there over 2 years. Arguable about if a verbal agreement has been given but definitely when get your contract which ends after the two years. You have to stop at the time you get the contract. Not when the 2 years is up... just saying like.

[Clare@InTouch]

I'm not sure I get the logic of the flat having duality of purpose because you sleep there - if you need it for business purposes, and you have a permanent home elsewhere, then it should be allowable. The waters can get murky if you own it and you're charging rent to the company etc I suppose, and you'd not be able to claim anything once the 24 month rule kicked in, or if the company owns the flat and you're using it personally.....

[ribble]

Life is unfair......

The 2 year rule is to help people with relocating and was decided 2 years is more than enough time to decide if you are going to relocate. It isn't a free for all to get tax free travel for ever. The rule wasn't really designed for the way we work hence all the grey areas and confusion.

Just to point out... You have to stop claiming when you KNOW you are going to be there over 2 years. Arguable about if a verbal agreement has been given but definitely when get your contract which ends after the two years. You have to stop at the time you get the contract. Not when the 2 years is up... just saying like.

I know is a bloody grey area - and I know it inside and out. But in theory we should get tax free travel for ever as we take the risks etc.

I stopped claiming from the time when my contract renewal took place where the renewal would take me over the 2 years.

What I really wanted to hear is peoples experiences / views on the damn thing.

Also on a side note - if you - NLUK - put as much effort into coding/plan b as you do posting - I think you would be a lot richer than you are.....

[ribble]

I'm not sure I get the logic of the flat having duality of purpose because you sleep there - if you need it for business purposes, and you have a permanent home elsewhere, then it should be allowable. The waters can get murky if you own it and you're charging rent to the company etc I suppose, and you'd not be able to claim anything once the 24 month rule kicked in, or if the company owns the flat and you're using it personally.....

It's needed for business purposes because I live in Devon and work out of London. Never there at weekends.

Post 24 months - I have been advised to claim a proportion of it as office, based on how much of it time it spends as an office. So 40 hours out of 168 hours in a week.

[Goatfell]

If it's really a financial imposition you could close down your Ltd and open another. Providing the client and agency don't throw a tantrum, (do it at renewal time perhaps to avoid too much hassle) you can effectively "reset" the 24 month clock.

What impact that may have on other aspects of your business is another matter though. It would probably make it more difficult to argue that you're "in business on your own account" if you're not building brand loyalty and corpoate identity blah, blah, blah.

[northernladuk]

If it's really a financial imposition you could close down your Ltd and open another. Providing the client and agency don't throw a tantrum, (do it at renewal time perhaps to avoid too much hassle) you can effectively "reset" the 24 month clock.

Are you really sure about that? It is about you and your location, not about the company. Switching from brolly to LTD does not reset it.

http://forums.contractoruk.com/accou...ml#post1696559

[northernladuk]

I know is a bloody grey area - and I know it inside and out. But in theory we should get tax free travel for ever as we take the risks etc.

I stopped claiming from the time when my contract renewal took place where the renewal would take me over the 2 years.

What I really wanted to hear is peoples experiences / views on the damn thing.

Also on a side note - if you - NLUK - put as much effort into coding/plan b as you do posting - I think you would be a lot richer than you are.....

You got my view.. If you don't like it don't cry on public forums....

I have a great family, house, friends and end to end contracts for a good number of years. That makes me rich beyond my wildest dreams but thank you for your advice, I will take it in to consideration.

[BolshieBastard]

I know is a bloody grey area - and I know it inside and out. But in theory we should get tax free travel for ever as we take the risks etc.

I stopped claiming from the time when my contract renewal took place where the renewal would take me over the 2 years.

What I really wanted to hear is peoples experiences / views on the damn thing.

Also on a side note - if you - NLUK - put as much effort into coding/plan b as you do posting - I think you would be a lot richer than you are.....

Why stop at tax free travel? Why not tax free other things too? If you're working all the time in London, its not a great distance to travel to work. Why should you continually get 'tax free travel' for that? Where is the 'risk'?

I was at a client site for nearly 3.5 years so didnt claim travel for just over 1.5 years. I was travelling 160 miles a day. Guess what? That cost came out of my own pocket.

[northernladuk]

It's needed for business purposes because I live in Devon and work out of London. Never there at weekends.

Post 24 months - I have been advised to claim a proportion of it as office, based on how much of it time it spends as an office. So 40 hours out of 168 hours in a week.

But your clients location is now your permanent place of work so claiming it as an office wouldn't help would it? You could also get in to other issues about using a residential let as a business premises. Does your letting contract not forbade it being used as a business property?