Just been offered to go perm Just been offered to go perm - Page 2
Page 2 of 7 FirstFirst 1234 ... LastLast
Posts 11 to 20 of 62
  1. #11

    Should post faster


    Join Date
    Oct 2019
    Posts
    195

    Default

    Yes. You may or may not believe them!

  2. #12

    Super poster

    Hobosapien's Avatar
    Join Date
    Feb 2016
    Location
    LA - la la fantasy land
    Posts
    2,724

    Default

    A factor that would determine how I handled such a scenario is how much money is sat in your Ltd's bank account as profit. That would be the basis of how to go about closing the Ltd (MVL if over £25k) and also what risk exposure there is to IR35 as any tax liability comes out of what the Ltd can pay.

    You could look into starting the closure asap and do the renewal through an umbrella company. That provides some gap between PSC and permie at the same client as you will be a permie at the umbrella company in between. Also allows a tax advantage of putting money into a pension pre-tax (but post living wage) if finances allow (aka salary sacrifice). Also gets you used to a reduced take home with a serious chunk of the £95k/year going in tax/NI, depending how you've been receiving personal funds from the contract income via your Ltd. e.g. min wage and divis rather than big chunk of PAYE that would be closer to your new regime.

    Your accountant can guide you on the best way forward, and others on here can guide you on whether I am misguided in anything above.
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

  3. #13

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,837

    Default

    No brainer. After 7 years at the same client and your only contract then you are no more a contractor than I am a blue arsed baboon.

    Take the permie money and work for the next few years watching the contracting world fall on it's arse.

    You haven't mentioned what your options might be after April and I'd be willing to bet after 7 years the role will most definitely sit inside IR35. You really don't want to be 7 years outside and then inside with HMRC eyeing you up. Far too much of a risk.

    Take the perm, disappear of their radar and hope to god they never find out you've been there 7 years.

    As I said, no brainer.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #14

    Nervous Newbie


    Join Date
    Oct 2019
    Posts
    14

    Default

    one thing i need to check is my IPSE ir35 investigation insurance still valid if I close the company?
    or can I move it into my own name rather than companies?

  5. #15

    Super poster


    Join Date
    Apr 2015
    Posts
    2,486

    Default

    'The reform is not retrospective' -- no, of course not, but that doesn't mean that what clients do will not inform HMRC's view of historical cases.
    'will not automatically trigger' -- no, of course not, but did they say it won't be a factor in determining which historical cases to investigate? No, they didn't.

    Look, mate, you're to be congratulated. You've done a good job for them, they like you, they want to keep you around. Well done. You should be aware that they've made you a phenomenal offer. They've assumed an outside role for you with your current day rate and they are giving you better than that. They've taken the salary that matches the same take home pay and deducted their pension contributions from it and offered you that as the salary. Plus, you get bonuses, life insurance, health insurance, and a share scheme.

    This is far better than a measly upgrade to £480 / day. You like the work and the people or you wouldn't have stayed, no commute, it's ideal. They worked with you on taking time off when you needed to. This IR35 'reform' might be the best thing that ever happened to you.

    Take the job now, close your company. Unless you have A LOT of money in the company, I wouldn't even try to go ER, I'd just pay it in dividends, take the tax hit, get the company emptied and closed quickly. Just get it done. If HMRC start investigating closed companies, they'll start with the ones that closed in March and February. So get it done sooner.

    It's an incredible offer. Either they think you are really good or you've got the dirt on someone important.

  6. #16

    Super poster


    Join Date
    Apr 2015
    Posts
    2,486

    Default

    Quote Originally Posted by techsoftlondon View Post
    one thing i need to check is my IPSE ir35 investigation insurance still valid if I close the company?
    or can I move it into my own name rather than companies?
    If you get the company closed you probably won't need it, especially if you used them for contract reviews.

    The risk is HMRC starting an investigation of you before it is closed and not letting you close it.

  7. #17

    Godlike

    ChimpMaster's Avatar
    Join Date
    Jan 2006
    Location
    Here There and Everywhere
    Posts
    5,575

    Default

    Quote Originally Posted by northernladuk View Post
    No brainer. After 7 years at the same client and your only contract then you are no more a contractor than I am a blue arsed baboon.

    Take the permie money and work for the next few years watching the contracting world fall on it's arse.

    You haven't mentioned what your options might be after April and I'd be willing to bet after 7 years the role will most definitely sit inside IR35. You really don't want to be 7 years outside and then inside with HMRC eyeing you up. Far too much of a risk.

    Take the perm, disappear of their radar and hope to god they never find out you've been there 7 years.

    As I said, no brainer.
    I'm several years into the same contract and consider myself well outside IR35. My working conditions and actually having brought in a Sub (for a short time admittedly) would hopefully be enough of a pointer out of IR35. My most recent contract renewal pretty much says that my task is to remove the tech I work on from the client's infrastructure, so in essence I am working myself out of a 'job'... no permanent position possible.

    We don't know this guy's actual working practises but if he has let them slip and has become too comfortable then yes he will be shafted well and truly into IR35.

  8. #18

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,837

    Default

    Quote Originally Posted by WordIsBond View Post
    If you get the company closed you probably won't need it, especially if you used them for contract reviews.

    The risk is HMRC starting an investigation of you before it is closed and not letting you close it.
    Standard thing is to pay Ipse for another full tax year after closing just to cover any investigation. Could do 2 if you are risk averse.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  9. #19

    Super poster

    Hobosapien's Avatar
    Join Date
    Feb 2016
    Location
    LA - la la fantasy land
    Posts
    2,724

    Default

    Yup check with the insurance terms and query the scenario with the insurance provider if more clarification needed. They are the only ones to rely on whether the insurance is worth continuing beyond closure of the Ltd.

    In normal circumstances the IR35 investigation risk is vastly reduced once the company has been closed as HMRC would need to either apply for the Ltd to be re-instated, and with no money in the company not sure the reasoning behind that type of action, or try to pass liability to the director(s). No-one has so far come forward to similar queries saying this happened to them so one should be able to rest easy as job done once the company is closed, providing the correct closure process was followed and all taxes paid.

    So insurance beyond that seems unnecessary but worth querying it with the provider.
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

  10. #20

    More fingers than teeth

    BlasterBates's Avatar
    Join Date
    Jul 2005
    Location
    1922 Commitee
    Posts
    14,099

    Default

    Take the offer, it's brilliant. 5 mins around the corner is worth a lot of money.

    Contracts will be harder to get and you don't want to spend 1-2 hours day commuting.
    I'm alright Jack

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •