2 Year Rule

18 May 2009

Often Umbrella Companies quote that if you are a contractor looking to join them then your contract must be be for a period of less than 2 years. This isn't stricly true.

Why this rule is quoted is that for a workplace to be classsed as temporary (and hence enable you to claim relief for costs while working at a temporary workplace) it is generally accepted that if you are working at a location for more than 2 years then this can't possibly be considered to be temporary.

If however your contract requires you to visit different locations then then 2 year rule may not apply i.e. although your contract is with the same client your place of work is changing. At the end of the day when you join an Umbrella Company the contract with the end client is actually between them and the Umbrella Company.

If you have been turned away by an Umbrella Company because of the 2 year temporary workplace rule please call us to discuss further.

The two year rule affects your right to claim subsistence (food and drink) and travel tax free.

PayMatters Umbrella Company 0800 121 6513.