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24 month rule

24 month rule

Havew a new client based in wales, but has been subcontracting in Bath/Bristol area. I would be grateful for any comments, or suggestions of relevant sources of information online regarding the following:

1. Client rents a flat local to the area in whcih the work is carried out. Does the 24 month rule apply for the self-employed. I seem to recall that after a time the Revenue will argue that the clients base is now the flat, and that he is choosing to return to Wales for personal reasons; is this correct.

2. If the 24 month rule does not apply, or the self-employed equivalent, then I assume claiming 5/7 of the rent etc when using the flat would be OK, together with travel to and from.

If helpful to any answer the client has worked fro the same contractor for many years, and I assume that thsi will be for the contractor to justify if the relationship is challenged. The cliant does not go to the contractors site on a regular basis. Contarcts and prices are agreed by phone, and our client carries out the work direct from his property. He wil on occasion go to the contractors site to stock up on any required materials, though much is supplied by him.

Any commenst etc would be greatly appreciated.


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30th Nov 2009 15:36

Update re 24 month rule

Just looked at my question, and apologise for all the typos. I was obviously typing too quickly for my poor little fingers to cope, and failed to check before pressing submit. Have looked at the Revenue website,and the closest I have found is BIM37665, though this appears to deal with a case where there was duality of purpose with one base. In this case there are 2 bases with the flat being used only on cost grounds compared to Hotel/B&B. The only matter I am unsure of is whether this choice will cause the Revenue to disallow, and whether there is a limit on how long such a claim, if allowed, would be allowed to continue.

Do recall a case may years ago where my client was on one site for over 2 years, and Revenue stated that the site area thus became his business base. I seem to remember they challenged both travel & subsistence as a result. Unfortunately, at this stage I cannot recall the client name, so that I can look at the Revenue argument at the time.

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