I'm having the same problem on my iPhone six and iPad air both on IOS 8.0.2. I have turned the Bluetooth off and on, I have reset network settings, I have logged out of iCloud rebooted device log back in the iCloud on both. Nothing works.
However handoff works fine when using my iPhone and Mac or iPad and Mac. The issue is the communication between the phone and iPad. I am thinking about erasing content and settings on both but I really don't want to do that.
----------
This is so messed up I decided to test once again after posting my previous post for ***** and grins and son of a bitch it started working across both devices no idea what happened