War chest Almost Depleted and Getting Desperate

[WordIsBond]

So the 31 days starts from the day you pay the loan back rather than from the date it is due?

Correct.

Obviously, what I've suggested doesn't solve the big problem, but it keeps the loan due date from being part of the problem.

[psychocandy]

OP - Now my opinion is always a bit contentious and its been a good few years so the rules/law may have changed. Also, the horse has already bolted maybe for you.

Before anyone has a go, remember when I did it, it was all legal - THIS MAY HAVE CHANGED. If you don't want to do it then UP TO YOU....

1. Pay out all dividends/profit left in company. To be honest, I used to do this every quarter anyway - potentially doing it AFTER you become contract-less is possibly a bit dodgy.

2. Have a look at your savings and see if its worth using to pay off cards/loans etc. Again, doing this AFTERWARDS is probably dodgy.

3. Even though you are still director of a company you are "temporarily without work" and eligible for Job Seekers Allowance IF you have done the NI bit, and there's probably now a lower limit for how much savings you can have.

Would I do it again if I "knew" I'd be without contract for a month. Probably not. Its a lot of hassle.

Would I do it if I thought I'd be on the bench for 3-4 months (like I was years ago). YES I would. Its not a huge amount £75 a week(?) but 13 weeks = close to £1000. Better than a poke in the eye. BUT you have to decide at beginning - they wont backdate it.

Check the legality of what you do though. Morally - each to his own (but people on here don't agree with me)

{{tin helmet on}}

[FrontEnder]

Retain quick as a scrum master / agile

PM roles are dead - I know good people out for a year now !!!


Sent from my iPhone using Contractor UK Forum

No need to re-train. Just rename all your project manager gigs as "delivery manager".

[Tractor Trace]

Spoke to a recruitment consultant today and he said that his team haven't been receiving as many contracts from clients as normal due to companies "being cautious about hiring because of Brexit". Not sure what to make of that one.....

[simes]

I am finding it increasingly more difficult each day to stay positive and concentrate on searching for gigs, as well as relaxing and thinking of anything else BUT getting work. I'm also not sure what the implications are for my limited company if I were to take a permanent job, or even a temporary hourly PAYE one.... admin if that's what it comes to. Would I need to close the company? Stop paying a net salary or pay more tax? Has anyone else been in a similar position and how did you get through it/ handled it?

Back in the day when I first started contracting, and my CV demonstrated that newness following a stint in the telco industry that died after the 2000 dot com crash, and a stint in the travel industry that died after 9/11, and I was left wondering what industry would collapse shortly after my entry to it, I kept the company alive by doing telemarketing and having all sums paid into the LtdCo.

An easy part time job that had me on the phone all the time and so speaking to agents was easily covered up.

Not sure if this is an option of interest for you...

[Tractor Trace]

[QUOTE=simes;2638855]I kept the company alive by doing telemarketing and having all sums paid into the LtdCo.../QUOTE]

How did you manage that? Aren't telemarketing jobs largely PAYE? Also what about the job itself, as I thought that any work done through your limited company had to be related to be in the same field e.g Business Analyst and telesales/marketer is not the same? I could be completely wrong so excuse me for my ignorance if I am.

[northernladuk]

Many sales people are classed as freelance. Saves the companies bothering with employment as turnover is so high.

For amounts he's bringing in as a telemarketer compared to contracting income it's irrelevant really.

[Hobosapien]

... I thought that any work done through your limited company had to be related to be in the same field e.g Business Analyst and telesales/marketer is not the same?

Depends on the Ltd's nature of business (SIC codes) logged with Companies House. There are some vague ones that allow more flexibility, and they can be changed, and can have multiple codes (up to four IIRC) to allow for vastly different activities.

I think it only really matters on an operational basis if the nature of business affects the taxes due, something an accountant should be able to give guidance on.

A personal example relevant to the contect of this thread: During a period between contracts I used my Ltd for a plan B that involved retail, so nothing like the general 'other IT service activities' the Ltd was originally set up for. Just added another SIC code after checking with my accountant there were no other issues. Then removed it when that plan B failed and went back to contracting. Accountant made sure the paperwork was up to scratch.

[simes]

Many sales people are classed as freelance. Saves the companies bothering with employment as turnover is so high.

For amounts he's bringing in as a telemarketer compared to contracting income it's irrelevant really.

Absolutely right.

The telemarketing was hand to mouth stuff for two or three months. But I remember I also did some temping and I managed to get them to pay me gross into my company.

Anyway, other small jobs kept me alive. The monies going into the LtdCo kept it alive.

[oliverson]

After my first contract ended, I was in a similar position to you. I was benched and getting desperate. I ended up doing one perm interview but not getting it. I just persisted and finally after 5 stressful months I got my gig. It started the ball rolling for a few very lucrative years to follow. If I hadn't of persisted, I wouldn't be in a comfortable position I'm in now. I just kept plugging away. What got me through it was my conviction that I wasn't going to return to perm (I probably wouldn't have taken that one perm I went for). I knew what i wanted and nothing was going to stop me. Horrible 5 months but as I say, worth it. I got my gig just as my warchest was drying up.

My advice is to stick with it (if contracting is really what you want) but also look after your own health. That's priority.

Similar here. I had a terrible run when the financial crisis hit. The London banking sector was dreadful and my skills weren't in demand outside of that. I spent a few periods of 2-3 months on the bench between end of 2009 and mid-2012 and it came close to wiping me out. I suffered but learned a lot over that period and fortunately the experience has set me on the right path. Looking at your situation, it is absolutely nothing to worry about, although it might seem like it is. Believe me when I say how long you can survive when you really need to. Over my 'troubled' period I had a lot of interviews, both telephone and face-to-face but failed to land anything. I honestly believe they could smell the desperation. Keep applying but try enjoy the time you have off because pretty soon your number will come up and you'll be sat in a miserable office looking outside at the sunshine!