The Two Year Rule

What is the Two Year Rule?

The 2 year or 24 month rule (1998) entitles workers to claim travel expenses from your home to your workplace, as long as it is classed as "temporary".

The work assignment must be:

  • Less than 24 months
  • Unclear (but assumed to be under 24 months)

This means that contractors are entitled to claim travel expenses for contracts of less than two years.

For contracts of two years and over, no travel expenses can be claimed.

The period of 24 months starts from the first day of your contract with a client. If the contractor has spent 40% or more of their time at the clients site within the two years, then travel expenses cannot be claimed. Even if there were breaks between work assignments.

You may still be able to claim travel expenses if your contract has lasted for more than two years but you have been working in different sites.

The 2 year rule applies only to expenses; it does not affect your IR35 status.

Submit your travel expenses claims to your umbrella company along with your timesheets in order to be reimbursed.

For official HMRC guidelines click here:

Call us on 0161 464 4701 to talk to our support team.

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The Two Year Rule

What is the Two Year Rule?

The 2 year or 24 month rule (1998) entitles workers to claim travel expenses from your home to your workplace, as long as it is classed as "temporary".

The work assignment must be:

  • Less than 24 months
  • Unclear (but assumed to be under 24 months)

This means that contractors are entitled to claim travel expenses for contracts of less than two years.

For contracts of two years and over, no travel expenses can be claimed.

The period of 24 months starts from the first day of your contract with a client. If the contractor has spent 40% or more of their time at the clients site within the two years, then travel expenses cannot be claimed. Even if there were breaks between work assignments.

You may still be able to claim travel expenses if your contract has lasted for more than two years but you have been working in different sites.

The 2 year rule applies only to expenses; it does not affect your IR35 status.

Submit your travel expenses claims to your umbrella company along with your timesheets in order to be reimbursed.

For official HMRC guidelines click here:

Call us on 0161 464 4701 to talk to our support team.

Read More

The quickest way to get
the best take home pay

Stop losing your hard earned cash!

Fill in your details below and start saving now!

Your information is safe: Privacy Policy