<p>The 24-month rule, also referred to as the two-year rule, enables contractors to claim travel expenses from their home to a client's office, as long as it is classed as a "temporary workplace". <br></p><p>The following conditions must apply for a work location to be classed as a "temporary workplace"</p><ul><li>The period of engagement is less than 24 months</li><li>The contractor should spend less than 40 percent of their time at the workplace<br></li></ul><p>Essentially, if you work at the client's office for more than 24 months, or spend more than 40 percent of your time at the location, it is considered a permanent workplace-and as such, you won't be able to claim travel or subsistence expenses. <br></p><p>Bear in mind that this is subject to the SDC legislation introduced in April 2016. Further elaboration on SDC can be found in our guide to <a href="https://www.goforma.com/umbrella-company/umbrella-company-expenses" target="_blank">claiming expenses as an umbrella company contractor</a>.</p>
Small Business Accountants
What is the 24 Month Rule for Directors Expenses?
HMRC's 24-month rule limits how long a UK director or contractor can claim tax-free travel and subsistence to the same temporary workplace. A workplace stops being temporary once the engagement is expected to last more than 24 months, or once the worker spends or expects to spend more than 40% of their working time there. Once either condition is broken, travel and subsistence to that workplace become taxable benefits.
