Warchest never seems enough....

[d000hg]

SIPP/Personal savings etc. are not part of your warchest.

SIPP probably shouldn't be, or ISAs, but there's no reason at all your personal savings can't be your warchest.

[eek]

SIPP probably shouldn't be, or ISAs, but there's no reason at all your personal savings can't be your warchest.

especially with an offset mortgage...

[zoco]

Don't any of you keep something for firefighting purposes should the taxman come sniffing around and decides he wants to conduct an IR35 review?

Or are you all always 100% confident that you are outside IR35 in every gig?

[eek]

Don't any of you keep something for firefighting purposes should the taxman come sniffing around and decides he wants to conduct an IR35 review?

Or are you all always 100% confident that you are outside IR35 in every gig?

current gig is watertight. Previous one was, I also meet their business criteria due to plan b....

and have pcg plus as a backup...

[doodab]

At what point do you really start to relax when it comes to warchest?

When I have enough to live comfortably for the rest of my life without ever working again.

[d000hg]

Don't any of you keep something for firefighting purposes should the taxman come sniffing around and decides he wants to conduct an IR35 review??

That's called your life savings.

[GazCol]

Don't any of you keep something for firefighting purposes should the taxman come sniffing around and decides he wants to conduct an IR35 review?

Or are you all always 100% confident that you are outside IR35 in every gig?

That's what insurance and PCG is for. Saving a war chest in case of a possible IR35 review is like keeping your life savings aside in case your uninsured home falls down.

[BjornMorg]

current gig is watertight. Previous one was, I also meet their business criteria due to plan b....

and have pcg plus as a backup...

Excuse my ignorance but what do you mean by 'plan b...'

[northernladuk]

I think you're being too legalistic here... who cares where you keep it as long as it is set aside to cover loss of income, and is not allowed to be spent?

I am indeed just for discussional purposes. Thing is though. We can only take out a certain amount before paying a lot in tax. There is no point taking more out for your warchest because of the tax and I don't know how others do it but I can't live AND save hard for a warchest in what I pay myself a year. The rest I can't take out mounts up in the business so warchest builds it's self. I guess those who's lifestyle allows them to save then fair enough but again that to me are savings. Warchest is the spare money in the business I can't get out. Horses for courses that one I guess.

No reason your company has to continue paying you when you're out of work, but more than likely your company salary doesn't cover your costs anyway. So I'm not sure how you're going to access your warchest if you are already maxing out withdrawls from the company.. in your shoes I'd view the personal savings as warchest and the company as my retirement!

Don't understand this. I access my warchest in the business when there is no contract money coming in so I can continue to pay myself the same amount when I am out of work. That is the whole point of the warchest isn't it? Uninterrupted income during hard times. Am I missing something here cause your statement doesn't make sense to me.

I keep company pay and savings separate. Warchest is there to allow the company to continue to remunerate me while I am out of work. Personal savings are personal savings for me.

Interesting to see how everyone else does it though.

[northernladuk]

Ultimately though the warchest is what it says on the tin - when you are "going to war" (i.e. on the bench) you have the funds to keep you going (namely in the business account). SIPP/Personal savings etc. are not part of your warchest.

Exactly how I see it. Warchest is a business matter, personal savings are for rainy days whatever happens.