Arm being twisted to go Permie

[xux42]

Thanks everybody. Useful to see that its viable to keep the Ltd. Co. going alongside.
Sorry I mentioned Appraisals now as it rather hijacked the thread. Its just that they got a bit repetitive being a journeyman Programmer/Analyst with no interest in progression into management. Anyway, you are right they can be used constructively.
I guess I'd better talk seriously to my client about possible Permie terms. According to the Contractor UK, 50% of Contractors are now looking at this as a way through the recession.
It doesn't look like I will have to make a final decision until after Tax Year End anyway.

[Ivor Bigun]

Thanks everybody. Useful to see that its viable to keep the Ltd. Co. going alongside.

I guess I'd better talk seriously to my client about possible Permie terms. According to the Contractor UK, 50% of Contractors are now looking at this as a way through the recession.
It doesn't look like I will have to make a final decision until after Tax Year End anyway.

This is what you do.

- Take permie job and look really keen - If you're going to do it - do it 100% or be seen to be! Try to accept job in new tax year.

- Wind up company and grab GB's tax advantages before they disappear.
DO NOT KEEP THE COMPANY RUNNING - or the IR will think you're an investment company.
Take the money and invest wisely - pay mortgage off or whatever.

[xux42]

This is what you do.
- Wind up company and grab GB's tax advantages before they disappear.
DO NOT KEEP THE COMPANY RUNNING - or the IR will think you're an investment company.

Is there a link to more info. of the tax advantages and why the revenue will consider the Co. an investment one?

Or should I talk to my Accountant?

[tim123]

Is there a link to more info. of the tax advantages and why the revenue will consider the Co. an investment one?

They wont, unless you actually use it to do some investment (and no, keeping the balance in a normal savings account doesn't count).

tim

[lilelvis2000]

If the company invests in you...that is they send you on conferences, training and you get to work on the 'coolest' projects..why not?

You can always leave.

[Jog On]

Its not just about targets and salary, its also about gaining recognition for promotion - so pushing the employer to set / agree targets that make you more valuable to the organisation and towards gaining a promotion - if that is what you want of course.

If I was a permie I'd probably want that.

However I fully intend never to go perm ever again.

[Ivor Bigun]

Is there a link to more info. of the tax advantages and why the revenue will consider the Co. an investment one?

Or should I talk to my Accountant?

Yep - definately.

10%

[xux42]

Yep - definately.

10%

Quick update. I did speak to my accountant and he was 100% for closing down the company if I go perm.
There will be a fair amount left after corporation tax etc. and I will be able to take nearly 10K tax free using my 09/10 CGT allowance and the rest at 18% flat.

Meanwhile the bureaucratic wheels slowly turn at the Client now I have agreed to consider permiedom....