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Previously on "Pension carry forward (when moving from Ltd to Umbrella)"
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@Smartie I've got a renovation needs paying for too so might not be a bad time to take out a lump sum at low-er tax rates, who knows maybe VAT threshold will even be raised in two years!
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I took an inside role in August and seriously considered doing an MVL…. Was in an outside role by December!
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Just to add an alternate perspective, I MVL'd a couple of years ago and entirely happy I did.
You need to assess the risk, but getting at your money with 10% tax is very nice. Almost as good as banging it in your pension.
It can sit happily in an offset mortgage, reducing the interest and doubling as a warchest.
On the BA role, it's a very very broad description covering a very wide set of skillsets.
The description of generalists could equally apply to PMs and Devs.
I've had no issues finding suitable roles, yet.
We just need to adapt to the new reality and ensure we distinguish ourselves in a market that has become pretty saturated.
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Originally posted by MillennialContractor View Post
Thanks a lot for the recommendation, much appreciated I'll definitely get in touch. Likewise I noted you recommended Clarity on another thread - I'll see if I can tempt the agency to engage.
Ha, I think deep down I knew this, but hell it gave me a chance to blow off some steam once in a while!
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Not being rude but from what I've seen business analyst is a bit of a catch all term for anyone doing random stuff on projects so understandably going to be inside. That type of role will always be under D&C, MoO etc. A big gap between most BA's and a 'proper' BA. When you've seen a proper BA you'll know. Same in the PM world. The percentage of 'proper' BA roles for large programmes compared to general dooer BA's must be tiny and then the proper ones that could be argued outside get dragged in to the pot with the rest.
So I'm not surprised it looks a bit bleak and doesn't make sense but to be fair there has been absolutely nothing for me on the job boards for a week now which is unheard of usually so could be bad market, clients not understanding what a BA is and IR35 fear.
Thanks a lot for the recommendation, much appreciated I'll definitely get in touch. Likewise I noted you recommended Clarity on another thread - I'll see if I can tempt the agency to engage.
That was pretty pointless in the old days let alone now. That ship has sailed as they no long need to know so will put less effort in to understanding it than ever. Stopped doing that years ago. Agent is going to get their cut either way so why would they go back and pester their clients.
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Originally posted by MillennialContractor View PostThanks Northernladuk - appreciate the feedback,
I was worried for a long time about the same, but over the last two years I've not had a single sniff of an outside role (not without a huge rate cut for the privilege) - thankfully I've been extended several times at the current client outside IR35, but I religiously apply for other roles as if I'm on the bench 6week to go, unless I've signed the extension. I wonder if 'business analyst' is in the minority for truly outside roles.
So I'm not surprised it looks a bit bleak and doesn't make sense but to be fair there has been absolutely nothing for me on the job boards for a week now which is unheard of usually so could be bad market, clients not understanding what a BA is and IR35 fear.
I'm starting to think I may as well get that 2 year clock started and hope with the offset rules and some political miracles the tide will change or clients will become less risk averse.
I'm probably a little fortunate in that I can put nearly my whole rate into pension for the first year and I'm thinking maybe take advantage of MDV while its still around. I've also got an itch to scratch with other business ideas so maybe this is the time to take the plunge potentially.
More than anything I'm getting sick of educating recruiters on IR35 knowing there's no way they're having the same conversation with the end clients!
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Thanks Northernladuk - appreciate the feedback,
I was worried for a long time about the same, but over the last two years I've not had a single sniff of an outside role (not without a huge rate cut for the privilege) - thankfully I've been extended several times at the current client outside IR35, but I religiously apply for other roles as if I'm on the bench 6week to go, unless I've signed the extension. I wonder if 'business analyst' is in the minority for truly outside roles.
I'm starting to think I may as well get that 2 year clock started and hope with the offset rules and some political miracles the tide will change or clients will become less risk averse.
I'm probably a little fortunate in that I can put nearly my whole rate into pension for the first year and I'm thinking maybe take advantage of MDV while its still around. I've also got an itch to scratch with other business ideas so maybe this is the time to take the plunge potentially.
More than anything I'm getting sick of educating recruiters on IR35 knowing there's no way they're having the same conversation with the end clients!
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Be wary of making the same mistake a lot of people made and it cost them. One inside gig is not the end of your career. Many people MVL'd out off the back of the news the world was going inside and it didn't pan out well. They did one gig, went back outside and found they couldn't open another LTD for two years. Very silly and very expensive mistake.
It's one gig, do the gig, see what happens to the next one and then make a decision based on a longer view. Do some tax planning for the final eventuality as you get used to inside gigs and then make an informed and appropriate decision based on your career, not an individual gig.
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Pension carry forward (when moving from Ltd to Umbrella)
Hi All,
Having almost accepted my fate that my next role will be inside IR35 due to blanket bans (if I don't want to sit on the bench), I'm looking at my best options regarding surplus cash / MVL.
I keep seeing contradicting information on the carry forward pension allowance - maybe more aimed at perm or LTD director in isolation and not the situation of transitioning from LTD to umbrella worker.
After tax I have circa 100k in the business and for multiple reasons (mostly expecting to close my company every time my contract ends and I'll sort it out later) have made no contributions over the last 3 years to my SIPP.
I appreciate as a permie you can contribute personally up to the level of relevant income you have earned in that year (dividends not included) and I understand a company can more or less contribute what they like within reason up to your carry over limit. I want to be sure (as just now I have the option of using the surplus cash in my business and reducing my corporate tax bill by paying directly into my pension), given over the last few years my qualifying income as directors salary will have been circa £9096, can I ask my umbrella to take advantage of 180k (40+40+40+60) of pension allowance through salary sacrifice or will that be reduced due to taking most of my pay as dividends?
Any help would be greatly appreciated.Tags: None
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