Travel Guides - 24 Month Rule
When does 24 month rule apply?
The 24 month rule puts some limits on when you can claim travel and subsistence expenses. The 24 month rule applies to any claims for travel and subsistence. This would include fares, mileage, subsistence and hotel & accommodation.
It applies to any employee no matter what size business they are working for. If you have worked, or are expected to work, at the same site for a continuous period of more than 24 months then it is considered "normal commuting" and the cost is no longer allowable. If more than 40% of your working time is spent at a particular site then this would count towards the 24 months.
The 24 month rule would apply if you had worked at the same site, or close geographical area, in previous employment over the past two years. This geographical distance is not defined but a 20 mile radius is a good rule of thumb.
You must:- remember that as soon as there is a reasonable expectation of remaining on the same site for more than two years, i.e. sign a contract extension taking you over 2 years, then future travel from that point would be classed as normal commuting.
Next: Basics of Business Expenses