24 Month Rule

The 24 month rule applies to many contractors and allows them to claim expenses provided that their place of work meets the HMRC definition of a temporary site. A contractor can only claim full expenses if a contract lasts 24 months or less. It is important to note that if a contract is agreed that before work commences and goes beyond 24 months then no expenses can be claimed.

If a contractor continues to work for a client but in a different location then in some cases expenses can still be claimed. For a contractor to still claim in this situation their commute must be significantly different. This is open to some interpretation.

If a contractor has previously claimed expenses to the same site under a different arrangement these must be considered when using the 24 month rule. Moving to a different umbrella company won’t allow a contractor to claim expenses as though they are starting a fresh.

Contact Zeva for further information.