I've had ambitions of beginning consulting for a while now but didn't have enough saved up (and a young family) to do it with a reasonable amount of certainty. An opportunity has come up to begin consulting for around 10 hours per week at a fair rate. I was considering doing this for a while in addition to my permanent employment (but at different times, not dual dipping my time).
I wouldn't actually need any of the money to withdraw as I'm already in the higher tax bracket. So I was considering just leaving the money in the company until i have a reasonable war chest in there to allow me to make the move fully.
Obviously the company would have the same amount of overheads as people who are contracting full time (accountants costs, insurances (PII, PLI etc), ipse+ membership and other things I'm not thinking of right now). I've currently got costs at around £150/month with around £350 one off setup costs so that's not too bad. I'd obviously need to fund a laptop and additional things but a fair one comes out at just over £2k (convenient eh?).
Other than that reduction in the profitability of the company is there a reason not to do this?
My permie company are fine with me contracting as they're aware of my ambitions and I've checked this with them first.
I wouldn't actually need any of the money to withdraw as I'm already in the higher tax bracket. So I was considering just leaving the money in the company until i have a reasonable war chest in there to allow me to make the move fully.
Obviously the company would have the same amount of overheads as people who are contracting full time (accountants costs, insurances (PII, PLI etc), ipse+ membership and other things I'm not thinking of right now). I've currently got costs at around £150/month with around £350 one off setup costs so that's not too bad. I'd obviously need to fund a laptop and additional things but a fair one comes out at just over £2k (convenient eh?).
Other than that reduction in the profitability of the company is there a reason not to do this?
My permie company are fine with me contracting as they're aware of my ambitions and I've checked this with them first.
Comment