Hi,
I turned contractor 10 months ago after many many years as a permie. Had grand plans to contract for ever but got offered a job by the people I have been contracting with and have decided to take it. They offered a couple of times and the last time I bit but am looking forward to it. It's a new job doing interesting stuff with a good company and if I want to go contracting in the future I will be better set up. Anyway on to the point of this post....
During my time contracting I have followed the usual pattern of small salary £500 pm and dividends every so often but in reality have not taken much out. I will be left with quite a sizeable chunk in my company bank account when I go permie. I would obviously like to get as much out without paying tax as I can and wondered what other people have done in this situation. I raised the question of Entrepeneurs relief with my accountant who said this was not applicable in this circumstance although he did mention using the £10,000 CGT allowance as a possible. A contractor friend also mentioned making myself redundant which I think you can take £30,000 tax free although he thought it might bring up a few red flags with Hector.
I will be speaking to my accountant again regarding this but would appreciate others thoughts on this.
Cheers,
Turbine
I turned contractor 10 months ago after many many years as a permie. Had grand plans to contract for ever but got offered a job by the people I have been contracting with and have decided to take it. They offered a couple of times and the last time I bit but am looking forward to it. It's a new job doing interesting stuff with a good company and if I want to go contracting in the future I will be better set up. Anyway on to the point of this post....
During my time contracting I have followed the usual pattern of small salary £500 pm and dividends every so often but in reality have not taken much out. I will be left with quite a sizeable chunk in my company bank account when I go permie. I would obviously like to get as much out without paying tax as I can and wondered what other people have done in this situation. I raised the question of Entrepeneurs relief with my accountant who said this was not applicable in this circumstance although he did mention using the £10,000 CGT allowance as a possible. A contractor friend also mentioned making myself redundant which I think you can take £30,000 tax free although he thought it might bring up a few red flags with Hector.
I will be speaking to my accountant again regarding this but would appreciate others thoughts on this.
Cheers,
Turbine
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