Hello,
I have been offered a new 6 months role with a new client starting outside IR35 in March and then going inside IR 35 via an Umbrella when IR 35 kicks off in April.
Currently I'm working outside IR35 and my contract is ending end of February.
I've got more than 150K sitting in the company.
So I'm just thinking it might be time to MVL the company using the entrepreneur's tax relief of 10% just in case of any bad CGT changes within the new March budget. I was reading that tax could go up from 10% to 20% for MVL.
The pros:
Getting out the money and pay only 10% tax before new March 2021 budget
I already have a new job for 6 months on the table inside so wouldn't need the company anymore
The cons:
I cannot use LTD company during the next 2 years but it would be mitigated by that 6 months offer I'm about to take so in fact I couldn't use a LTD company for only 1 year and half.
The new contract starts outside and then goes inside. I think It should start directly inside to avoid later HMRC investigations on a contract starting outside then going inside. I guess this is something I could negotiate with them.
Timing is going to be tricky but achievable
Any thoughts on my strategy? Am I missing something?
I don't even speak about the day rate cut I take with the new job inside IR35 via Umbrella simply because market is right now not great and I cannot find any jobs Outside with a good rate. So it is what it is.
Thanks all
I have been offered a new 6 months role with a new client starting outside IR35 in March and then going inside IR 35 via an Umbrella when IR 35 kicks off in April.
Currently I'm working outside IR35 and my contract is ending end of February.
I've got more than 150K sitting in the company.
So I'm just thinking it might be time to MVL the company using the entrepreneur's tax relief of 10% just in case of any bad CGT changes within the new March budget. I was reading that tax could go up from 10% to 20% for MVL.
The pros:
Getting out the money and pay only 10% tax before new March 2021 budget
I already have a new job for 6 months on the table inside so wouldn't need the company anymore
The cons:
I cannot use LTD company during the next 2 years but it would be mitigated by that 6 months offer I'm about to take so in fact I couldn't use a LTD company for only 1 year and half.
The new contract starts outside and then goes inside. I think It should start directly inside to avoid later HMRC investigations on a contract starting outside then going inside. I guess this is something I could negotiate with them.
Timing is going to be tricky but achievable
Any thoughts on my strategy? Am I missing something?
I don't even speak about the day rate cut I take with the new job inside IR35 via Umbrella simply because market is right now not great and I cannot find any jobs Outside with a good rate. So it is what it is.
Thanks all
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