24 Month Rule Explained | How to Apply the 24 Month Rule
This is a rule that contractors often forget about. However, it is a very important one.
In a nutshell, if you work at the same location for more than 24 months you are no longer able to claim for travel expenses to and from work each day.
You are no longer able to claim this expense as your workplace is no longer considered temporary. After 24 months, the location is considered permanent, unless you spend less than 40% of your time at that location.
You must remember that this rule applies from the date that you are aware you will be working at the same site for more than 24 months. Therefore you should stop claiming for any travel expenses to and from your place of work each day from the date you sign a contract that takes you over the 24 months.
It is also important to know that this applies to the location that you are working and not a particular client. There must be a significant change to your daily commute to allow the 24 month-rule clock to reset.
Please note that this rule is completely separate to the IR35 legislation.
If you are at all unsure if this applies to you please contact your accountant and they will be happy to advise further.
Download our free contractors guide that’s packed with tips and advice for running a limited company. It details rules and regulations around running your own business as a contractor or freelancer.
“The accountant I've been working with has been absolutely fantastic, particularly with providing fast and thorough responses to all of my questions (and there have been a lot!). I am continually impressed and couldn't be happier with the quality of service.”Eugene
“This is the 3rd accounting firm I am using and I am finally happy as things are done properly, on time and without mistakes or lapses. I am also quite happy that it is the same accountant that answers all my queries.”Michelle
"I am so pleased I switched. The service from Gorilla is exceptional, they all work to a very high standard. Gorilla is a really great accountancy service and I would give 11 out of 10 if I could!"Jaspal
We would love to update you on exclusive offers, handy guides and the latest Gorilla Accounting info.
Head Office
Unit B Lostock Office Park
Lynstock Way
Lostock
Bolton BL6 4SG
Opening Hours
Monday to Friday
8am - 6pm
