Going Permie for a short while??

[unisign124]

HI,

I have been contracting in an Engineering company since forming my LTD 3 months ago.They have just told me that my contract will not be renewned but have offered me a Permie position instead.

I would prefer to stay contracting but it could take me a while to find another gig on similar money (around £25/hr).

The permie position is £38,000 plus 6%pension and bupa.

Im tempted to take permie job and use time to find next gig so I've still got money coming in.

Are there any reasons why I shouldn't do this (Notice period in contract is 3 months but have been told 1 month is normal notice period)

Also, can I still draw my min wage salary while i'm still working full-time elsewhere? ie get paid from my new employer and pay paye and through myco LTD?

[max]

I would prefer to stay contracting but it could take me a while to find another gig on similar money (around £25/hr).

The permie position is £38,000 plus 6%pension and bupa.

Im tempted to take permie job and use time to find next gig so I've still got money coming in.

Seems like a good deal, 25/hr - 1000/wk for a 48week is 48000. The permi salary is not far off that. In IT the numbers rarely come that close!

Also, can I still draw my min wage salary while i'm still working full-time elsewhere? ie get paid from my new employer and pay paye and through myco LTD?

Not sure that sounds like a good idea...you'll just end paying more NI etc. Have you considered paying only dividends while you are permi...although on 38k you'll end up paying extra tax on ANY extra income.

[Sockpuppet]

HI,

I have been contracting in an Engineering company since forming my LTD 3 months ago.They have just told me that my contract will not be renewned but have offered me a Permie position instead.

I would prefer to stay contracting but it could take me a while to find another gig on similar money (around £25/hr).

The permie position is £38,000 plus 6%pension and bupa.

Im tempted to take permie job and use time to find next gig so I've still got money coming in.

Are there any reasons why I shouldn't do this (Notice period in contract is 3 months but have been told 1 month is normal notice period)

Also, can I still draw my min wage salary while i'm still working full-time elsewhere? ie get paid from my new employer and pay paye and through myco LTD?

If your just taking the job becuase you want to look else where when you start taking days off to go and look for interviews they may wonder.

Why would you take Min wage when you are getting paid full PAYE. As the other employer is not your main employer you would pay BR tax rate or full tax on everything.

Basically destroy the advantage of drawing min wage.

Either go permie or stay contractor dont confuse the two.

[ASB]

Why would you take Min wage when you are getting paid full PAYE. As the other employer is not your main employer you would pay BR tax rate or full tax on everything.

You can nominate your main employer. So you could have your standard tax code with the employer and BR with YourCo. none of this make any difference to the amount of tax you will pay (since it is cumulative) however it might make a difference as to when. [If the employer which had the standard code was paying less than your allowances you would be overpaying slightly so this would come brack from the tax return, also the point at which you enter the hiher rate threshold would be wrong because neither employer is aware of pay from the other one thus thus wiuld cause more tax to be paid when your tax return got filled in].

If you don't need the money from YourCo levae it in there until you are in a position of not being a higher rate taxpayer and tyhen take it out as dividends.