Originally posted by billybiro
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Advice on returning to permanent employment"
Collapse
-
Originally posted by blacjac View PostDefinitely don't rush to close the company down.
You may find that after a couple of months back in permie land you want to go contracting again (seen it happen more than a few times...)
Leave a comment:
-
An alternative would be to leave the company in place and use any remaining cash to fund pension contributions until it runs out or you decide to go back to contracting again.
Leave a comment:
-
Definitely don't rush to close the company down.
You may find that after a couple of months back in permie land you want to go contracting again (seen it happen more than a few times...)
Leave a comment:
-
Originally posted by billybiro View PostWhat does your accountant think of your pride?
Leave a comment:
-
Originally posted by SierraPapaCharlie View Post1. If I do decide to return to PE, with respect to my own personal tax liability, what are the pros/cons of closing the company within the personal tax year (ie; stop contract end of April, and close company before tax year end), vs continuing on until the end of my contract in July - if any?
If the company has less than £25k in assets then you don't need to do an MVL but you will need to do lots of other accounting filings (deregister for VAT, deregister for PAYE, final accounts etc), which is unlikely to happen this tax year.
I'd keep working, maximise the income to the company and then work out the best way to get as much of that in your pocket as possible at your leisure after August.
Leave a comment:
-
Definitely one for your accountant; it also very much depends on your salary in the PE as you'll then be looking at a trade off between dividends and entrepreneurs relief.
Leave a comment:
-
This really is one to run by your accountant. One significant thing you make no mention of is what (if any) war chest you've got in the company. It can be a perk of closing that you can often get this out taxed on you as capital gains, typically benefiting from entrepreneurs relief meaning <10% effective tax rate. Where your choice is this or 32.5% higher rate tax on dividends it can be appealing, though there is the third option of a hefty pension contribution.
If you have negligible war chest there's not much to suggest really.
I don't think tax should be a consideration in terms of whether to stop this tax year or 3 months later. Also I wouldn't recommend trying to get personal tax collected via your tax code. It may sound good in theory, but in practice it virtually always ends in a big mess.
Leave a comment:
-
Originally posted by VectraMan View PostHas you asked NLUK to tell you to ask your accountant?
.
Leave a comment:
-
Has you asked NLUK to tell you to ask your accountant?
1. Are you wanting a couple of months off? Otherwise I don't know why you'd throw away that income.
2. Maybe. There's a form you can fill out to inform them your likely earnings for the year. There's a chance your tax code will end up a mess, but it'll all be sorted out with a future SA.
If you're sure you're doing it, I would stop paying a salary from the end of this tax year leaving the allowance for the permie job.
Leave a comment:
-
Advice on returning to permanent employment
Hi all,
This is my first post on here - I wish I'd found this forum a long time ago!
So, my question is this; I am contemplating returning to permanent employment (PE) for a number of reasons which I won't bore you all with, and having never found myself in this situation before, I wanted to understand the options for doing this is in the most tax efficient manner possible. My current contract ends July 2017, and the role I am looking at would start 01/08/2017, and I have some specific questions as follows;
1. If I do decide to return to PE, with respect to my own personal tax liability, what are the pros/cons of closing the company within the personal tax year (ie; stop contract end of April, and close company before tax year end), vs continuing on until the end of my contract in July - if any?
2. For my own personal tax liability, when returning to PE, is it possible to instruct HMRC to have my personal tax bill paid via PAYE with a different tax code, or I am still required to complete a self assessment and pay my personal liability before Jan 31 2018?
I guess ultimately what I am trying to avoid is any large/unforseen tax bills come Xmas/Jan this year, because I wasn't savvy when transitioning back to PE.
Apologies if this is covered elsewhere - I did search but found lots of articles for people coming from PE to contract, but not so many going back the other way - either that or my search skills are just rubbish!
Any help, guidance or links to good articles that cover this would be greatly appreciated.
Many thanks in advance for your advice...
MarkTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: