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Temporary workplace

Temporary workplace

I believe I am correct in saying that an IT contractor working via a limited company can only claim travel costs for attending a temporary workplace (ie for up to 24 months). If they continue working for the same customer after 2 years are the costs simply not allowable business expenses and disallowed on the tax comp? 


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04th Dec 2012 13:13


You either:

Allow them through the accounts, dont add them back and they are then taxed as earnings.

Or just take the costs to the loan account.

You can't just add them back as the employee has still received funds from his employer, if they are not allowable travel expenses, they have to be taxed.

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By fpurves
04th Dec 2012 13:23

24 month rule - common mistake to watch out for

Also be aware that the when it comes to assessing whether a workplace is perm or temp you need to look at the shorter of 24 month or when they became aware that they are to be there more than 24 months.  e.g. if the initial contract was for 18 months and was then extended by 12 months - then travel would not be claimable after month 18.

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