Share this content
0
462

24 month rule on travel expenses

IT Contractor client coming to the end of 24 months and unsure if he can still claim travel

Didn't find your answer?

Search AccountingWEB

My IT Contractor client is coming to the end of his first 24 months in contract with the MET and is unsure if he will still be able to continue claiming travel expenses in his Ltd Co accounts - He works in various locations around and outside of London and these do change from week to week so would this be evidence enough that the 40% rule will not apply and therefore not trigger the 24 month limit for travel expense claims? Should HMRC ask the question, what evidence would be sufficient to prove his case? Thanks for any advice anyone can offer.

Replies (3)

Please login or register to join the discussion.

avatar
By Accountant A
21st Aug 2019 15:56

I think you need to sit down and establish exactly what his working location pattern is. Until you do that, I'm not sure you can make any sensible assessment.

You say "first 24 months in contract". To me that suggests the appointment was never a temporary one so that may be a red herring.

Thanks (0)
Replying to Accountant A:
avatar
By Satellite0509
22nd Aug 2019 07:44

Thanks for your input; to clarify, the client is only ever given a 6 month contract with a set end date but these can be terminated with immediate notice. Would these then still fall in to the 24 month loop?

Thanks (0)
Replying to Satellite0509:
avatar
By Accountant A
22nd Aug 2019 10:25

Satellite0509 wrote:

Would these then still fall in to the 24 month loop?

Possibly not but I would strongly advise you read the HMRC guidance.

Thanks (0)
Share this content