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)
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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.
Would these then still fall in to the 24 month loop?
Possibly not but I would strongly advise you read the HMRC guidance.