24 month rule and work place 24 month rule and work place
Page 1 of 2 12 LastLast
Posts 1 to 10 of 18
  1. #1

    Nervous Newbie

    LuckyLen has no reputation


    Join Date
    Aug 2018
    Posts
    2

    Default 24 month rule and work place

    Hi

    First time poster and would really appreciate some help !

    I have taken a number of contract extensions with the same client working in the same building for nearly 24 months and I am now very aware of the 24 month rule relating to work place and that I will no longer be able to claim expenses (I am working away from home 5 days per week and claiming travel and accommodation expenses. The client wishes to extend my contract by a minimum of 3 months at the same work location, however I have advised of the 24 month constraint so we are now looking at potential options for me to work out of another location but from a location that is approximately 15 miles from where I am currently located.

    Can anyone provide any advice as to what HMRC see as a minimum distance from the current work location to another work location which would then 're-set' the 24 month rule? I hope my constraint above is clear enough for anyone to help me. Thank you

  2. #2

    Super poster

    TheCyclingProgrammer is NOT a disguised employee


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    4,091

    Default

    There is no hard and fast rule. The general guidance is that for it to be considered a "new" workplace, there should be a significant change to the journey time and/or cost. Distance is not the only indicator (see the classic "bridge" example where a worker needs to work at the other end of a bridge - relatively close but involving a more costly and lengthy journey).

  3. #3

    My post count is Majestic

    northernladuk is always on top

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,514

    Default

    If only we had a massive sticky thread about the 24 month rule.

    But what TCP said.

    It's about geographic location so IMO upwards of 10 miles would be difficult to defend if its still in Greater Manchester for example. I can't help think 15 miles will also be difficult to defend if its far enough away to require staying away, particularly if its closer to home. The further away it is, the smaller the percentage change in the overall journey. The actual route may also add further complications.

    If it's still a grey area then I'd ask your accountant just to see what they say and then make your own call based on the risk. Is the risk of a challenge vs losing a lot of money from the a gig insignificant to you? If so fill your boots.

    If the client is so accommodating can they not meet half way with the costs through a rate rise? Can you not screw the agents commission a little (if an agent is involved)?
    Last edited by northernladuk; 22nd August 2018 at 16:13.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

    My post count is Majestic

    northernladuk is always on top

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,514

    Default

    Just checking something. You know you have to stop when you KNOW you are going over the 24 months? So if the last 3 month extension takes you to 24 months and a day you can't claiming anything during that 3 monther?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  5. #5

    Godlike

    Mordac is a fount of knowledge

    Mordac's Avatar
    Join Date
    Jul 2005
    Location
    Civilisation-ish
    Posts
    8,760

    Default

    Quote Originally Posted by northernladuk View Post
    Just checking something. You know you have to stop when you KNOW you are going over the 24 months? So if the last 3 month extension takes you to 24 months and a day you can't claiming anything during that 3 monther?
    WHS. An HMRC bod once told me their rule of thumb tends to be postcode based (as in, if your place of work is in the same postcode district as your last place of work, they treat your expense claims as if you haven't actually moved). And they treated London postcodes as one. That was almost 20 years ago, and was only one person's opinion. AFAIK, there's no absolute rule, so they're free to disallow whatever they wish on whatever whim they choose. The only safe option is not to put yourself in a position whereby they can disallow your claims, and that may well involve taking a long break from the client and/or location.
    His heart is in the right place - shame we can't say the same about his brain...

  6. #6

    Fingers like lightning

    TwoWolves is NOT a disguised employee

    TwoWolves's Avatar
    Join Date
    Aug 2005
    Location
    Gloucestershire
    Posts
    890

    Default

    I don't believe my accounts list the locations of my clients. Even contracts specify the legal office address of the client and not their actual business office.

  7. #7

    Godlike

    Mordac is a fount of knowledge

    Mordac's Avatar
    Join Date
    Jul 2005
    Location
    Civilisation-ish
    Posts
    8,760

    Default

    Quote Originally Posted by TwoWolves View Post
    I don't believe my accounts list the locations of my clients. Even contracts specify the legal office address of the client and not their actual business office.
    If you're claiming mileage or rail/air fares they will spot a location pattern immediately. Just to be clear, what is in your accounts or your contracts will have little or no significance when it comes to personal expense claims.
    His heart is in the right place - shame we can't say the same about his brain...

  8. #8

    My post count is Majestic

    northernladuk is always on top

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,514

    Default

    Quote Originally Posted by TwoWolves View Post
    I don't believe my accounts list the locations of my clients. Even contracts specify the legal office address of the client and not their actual business office.
    In an investigation they come and go through everything with a fine toothed comb. They'll find out.

    Although that is interesting. As far as I can remember every single gig of mine has had the cliebt location on the contract. For the reason above I don't see any advantage of having it removed though.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  9. #9

    Fingers like lightning

    TwoWolves is NOT a disguised employee

    TwoWolves's Avatar
    Join Date
    Aug 2005
    Location
    Gloucestershire
    Posts
    890

    Default

    Quote Originally Posted by northernladuk View Post
    In an investigation they come and go through everything with a fine toothed comb. They'll find out.

    Although that is interesting. As far as I can remember every single gig of mine has had the cliebt location on the contract. For the reason above I don't see any advantage of having it removed though.
    Well I think you've said it... "In an investigation" and that is quite a rare event that would only normally be triggered if you took the piss.
    Last edited by TwoWolves; 22nd August 2018 at 21:49.

  10. #10

    My post count is Majestic

    northernladuk is always on top

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,514

    Default

    Quote Originally Posted by TwoWolves View Post
    Well I think you've said it... "In an investigation" and that is quite a rare event that would only normally be triggered if you took the piss.
    Can be triggered for any number of flags. Doesn't mean you can be slap dash with your accounts. You'll only be getting away with it until you aren't so why not do it properly.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •