Can I book travel expenses after 2 years at same location

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claiming travel expenses
Claiming Travel expenses as a contractor

Travel Expenses

This question, about travel expenses, was sent to us and was answered by one of our Accountancy readers. Add to the advice, if you like, in the comments section after the article.

Harvey Asks a Question on Travel Expenses

Hi

Can anyone give advice. I am currently an IT contractor and have been contracting in the same location just under 2 years.

The concern I have is that I have been told by a colleague of mine that I will be unable to book travel expenses against Tax after 2 years working in the same location. Is this correct?

Also can anyone tell me if I can do a short contract at another location i.e. 2 weeks will that reset the 2 year rule. That may be a way round it if I can do that.

I would appreciate it if anyone has any experience they can pass on or a contact who I can discuss this with further. I will appreciate any help.

Thanks in advance for that,

Harvey

Top Accountant’s advice to Harvey

Hi Harvey,

This is quite correct, you cannot claim travel expenses after 2 years. They will deem that you are a permie employee because have been there for so long. You might also have problems with IR35 after a couple of years in the same place.

By doing a short contract you could reset it but it all depends on the length of the short contract. If it is anything less than 9 months and you could be on shaky ground there.

Travel Expenses are for someone who is working in a temporary location. You can hardly claim it is temporary if you have been working there, with the same, client, doing the same job, for more than two years.

So, good luck, anyway – and let us know how you got on.

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