MVL + ER - and then self employment MVL + ER - and then self employment - Page 2
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  1. #11

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by aoc View Post
    Thanks to all for your points.

    A bit more context, might clear up questions above.

    Q: Why go MVL so soon?
    - I want to get the MVL process started as soon as possible, because I don't trust the government to keep ER as an option when the full financial impact of the <ongoing medical crisis> hits e.g. in Autumn Budget.

    Q: Why sole trader and not umbrella?
    - The overwhelming advice above is "don't go sole trader", yep - I thought the focus of ER criteria and the MVL 2 year rule was on starting up another LTD, so I thought sole trader was an option. Currently my LTD contracts through another consultancy to the end client - the consultancy are open to sole trader or umbrella. My concern was with potentially only a couple of days work per month and zero in some months, would make me unattractive / the costs too inefficient for umbrella service companies.


    I think it's now clear that if I want to MVL, and support this adhoc work, then umbrella is the safe and perhaps only realistic option. The umbrella would also already be in place should the permanent role evaporate, if I had go back to a contract (for up to the 2 years after the MVL). I just need to find the right one with a good SIPP payment option.

    OK, so you've ruled out the advice because you're worried that in the autumn budget (in 5 months time) might have something in it that might negatively affect you in some small way.

    I'd suggest you keep your company open, max out your dividends, pension, etc, and then maybe look at MVL in a few months time.

    I also see that you've added a bit more context - you're not actually working in to the end client, but working through another consultancy.
    Can you tell us - is your intention that when you go permanent to work for the end client or to work for the consultancy?
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  2. #12

    Nervous Newbie


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    Quote Originally Posted by WTFH View Post
    OK, so you've ruled out the advice because you're worried that in the autumn budget (in 5 months time) might have something in it that might negatively affect you in some small way.

    I'd suggest you keep your company open, max out your dividends, pension, etc, and then maybe look at MVL in a few months time.

    I also see that you've added a bit more context - you're not actually working in to the end client, but working through another consultancy.
    Can you tell us - is your intention that when you go permanent to work for the end client or to work for the consultancy?
    Yes I agree I will have maxed out the dividends etc, but as for MVLing early ignoring above advice, we all have different views / hopes / expectations for the future, and my view is securing a 50% reduction on my CG tax bill will be more than worth any administrative inconvenience and the (potential) additional costs should I need to go umbrella longer term.

    The permanent role would be with the end client, and the intermediate consultancy is fine (indeed happy!) with this.

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