Contracting rates and take home pay
Discussion
Eric Mc said:
workshy fop said:
Haven't you got 2 years before it's deemed to be your permanent place of work?
I don't think that is enshrined in law. It is just a yardstick used by the Revenue and they can ignore it at their discretion.Interesting. I thought the "24 month rule" was actually a rule (the confusion in my mind coming from the name) rather than just a guideline. I stand corrected.
My understanding was that you were ok up until the point that your contract becomes clear that it is going to exceed 24 months (ie. if you've been there 6 months and you accept an 18 month extension, or indeed you've been there 23 months and they offer you a 3 month extension, or whatever) at which point not only do you have to stop claiming travel but you have to give back everything you've claimed so far.
Is that right, Eric?
Edited by JonRB on Tuesday 16th January 12:39
I am not sure either. It is termed a "Rule" but I have never seen any reference to a Section of the Taxes Act that actually covers this practice.
A further clarification as to what the Revenue mean by "The 24 Month Rule" is quoted in Tolley's Tax Guide as follows:
"Site based employees with no permanent workplace are allowed the cost of travelling to and from home (unless the job at the site is expected to last for more than 24 months, in which case ithe site counts as a permanent workplace).
The 24-Month Rule does not cover the position of someone whose employment, as distinct from temporary place of work, is expected to last 24 months or less."
I would emphasise the use of the word "expected". If, from day 1 you knew that the contract was for a period longer than 24 months, you can NEVER claim back the travel costs. You can't claim them for 24 months and then stop at the beginning of month 25.
A further clarification as to what the Revenue mean by "The 24 Month Rule" is quoted in Tolley's Tax Guide as follows:
"Site based employees with no permanent workplace are allowed the cost of travelling to and from home (unless the job at the site is expected to last for more than 24 months, in which case ithe site counts as a permanent workplace).
The 24-Month Rule does not cover the position of someone whose employment, as distinct from temporary place of work, is expected to last 24 months or less."
I would emphasise the use of the word "expected". If, from day 1 you knew that the contract was for a period longer than 24 months, you can NEVER claim back the travel costs. You can't claim them for 24 months and then stop at the beginning of month 25.
Edited by Eric Mc on Tuesday 16th January 13:09
emicen said:
So on a 12 month contract it could be argued it is not a permanent place of work?
you need to check your industry specifically.
HMRC arbitrarily decided a little while ago that Supply teachers (the industry i recruit for) were always "permanently" employed however short the tenure at a school (even half a day, once)
It is therefore impossible to be a "temporary" supply teacher, when employed by an agency.
Madness
Greg
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