Contractor expenses 24 month rule3/16/2023 ![]() If at any time the contract is actually extended, or anticipated to be extended, beyond 24 months, no further travel to and from the site will be allowable as the work place would be deemed to be permanent.Ī contractor with a history of taking successive assignments will eventually decide that a particular assignment will be their last. ![]() HMRC specifies that travel to and from a worksite is an “allowable” expense if the period of time at the site is both expected to be less than a maximum of 24 months, including any time spent on-site prior to the current contract and does not exceed 24 months. Any such claim is still subject to the 24-month rule. You can find additional information in the HMRC guidance the Helpsheet available on HMRC website. You should be aware that HMRC might ask you in case of a future enquiry. In essence, if you have decided to make contracting your business using your limited company as a vehicle and believe you will have a series of assignments in years to come, you may be able to claim main site expenses from your first assignment.Ĭonversely, if, as a director of your limited company, you expect only to work at a single location throughout your time as a director this location will be regarded as a permanent workplace and expenses will not be allowable.Īs a director it is your responsibility to determine if you have this long-term commitment. Under HMRC guidance where a director is able to demonstrate a long-term commitment to contracting or an ‘overarching contract’ with the limited company, it may be possible to claim reimbursement of ‘main site’ expenses. To find out how we can help, get in touch with our team.As a director of a limited company it may be possible to claim the costs of travel to and from your worksite. That’s why we’re always able to offer advice and support. If you work in the construction industry and you’ve overpaid on the cost of your travel, you could be due a tax rebate.Īt Brian Alfred, we’re experts in all things tax. Take a look at our table below to see how much you could claim: The amount you can claim on mileage depends on your vehicle and the number of miles you’re travelling. You also cannot claim for the cost of your motor vehicle (i.e., road tax and car insurance costs).įind out more about claiming tax relief as an employee. However, you will not be able to claim if your place of work is permanent. If you are a Pay As You Earn (PAYE) worker, you can claim the cost of mileage if you are travelling to a temporary place of work. Can I claim travel expenses if I’m a PAYE worker? ![]() You can find more information about the 24 month rule on the HMRC website. HMRC implemented an eligibility test known as the 24 month rule to simplify whether a worker travelling to a temporary place of work can claim tax relief.Īs long as your contract does not exceed 24 months and you don’t spend more than 40% of your time at this place of work, this shouldn’t affect your eligibility. If you are a CIS worker, there are instances in which you can claim tax relief on travel expenses. Can I claim travel expenses as a CIS worker? Give our guide a read to find out what you could claim back for the cost of your travel. Figuring out what you can and can’t claim as a business expense isn’t always easy. As a builder, there are certain perks involved with working through your own company, including expenses you can claim.
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