Evening all,
I’m currently a dreaded permie who’s company is doing a massive redundancy in my department. This is obviously terrible timing in terms of covid, brexit, redundancies everywhere, ir35 etc.
If I’m eliminated I should get a fairly sizeable payout. At least six months pay plus if my very early pregnancy works out, I may be entitled to six months of maternity pay too (it’s part of the offer for eligible (pregnant) staff affected by redundancy).
I’ve been at this job 6 years but previously was a contractor with a limited company. I’ll have to admit I found the company admin overwhelming - I was new to this country when I first started contracting here (although I had been a long term contractor in my home country).
The thing is I would potentially have six months between the date i stop working for my employer and the baby arriving. I can’t just sit around on my arse for six months because I’d go mad, but I’m looking at getting a short term contract.
I’d be happy to take the umbrella route but I’d get taxed like crazy this financial year given I’d have received my current salary, then redundancy package and maternity package as a lump sum (even with the 30k tax free).
Would it make sense to just operate as a limited company and not take any money out until such time I need it? It would probably not be needed for some time. Obviously I’d need to pay corp tax and vat etc but I’d really be keen to avoid any further personal tax. I already will have reached the 40k max AVC limit for tax relief.
Does anyone think just letting some money build up makes sense? Or is this a dumb idea?
I’m currently a dreaded permie who’s company is doing a massive redundancy in my department. This is obviously terrible timing in terms of covid, brexit, redundancies everywhere, ir35 etc.
If I’m eliminated I should get a fairly sizeable payout. At least six months pay plus if my very early pregnancy works out, I may be entitled to six months of maternity pay too (it’s part of the offer for eligible (pregnant) staff affected by redundancy).
I’ve been at this job 6 years but previously was a contractor with a limited company. I’ll have to admit I found the company admin overwhelming - I was new to this country when I first started contracting here (although I had been a long term contractor in my home country).
The thing is I would potentially have six months between the date i stop working for my employer and the baby arriving. I can’t just sit around on my arse for six months because I’d go mad, but I’m looking at getting a short term contract.
I’d be happy to take the umbrella route but I’d get taxed like crazy this financial year given I’d have received my current salary, then redundancy package and maternity package as a lump sum (even with the 30k tax free).
Would it make sense to just operate as a limited company and not take any money out until such time I need it? It would probably not be needed for some time. Obviously I’d need to pay corp tax and vat etc but I’d really be keen to avoid any further personal tax. I already will have reached the 40k max AVC limit for tax relief.
Does anyone think just letting some money build up makes sense? Or is this a dumb idea?
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