Mortgage question

[CodeMonkey76]

Hi,

I am looking at entering the world of IT contracting. I have been in the IT Development industry for about 10 years and having had a string of disappointing jobs over the last 3 years has focussed my interest in setting up myself.

Anyway, having met and spoke to many contractors in my career, I heard something that might prove useful should it be true. It would help reduce the risk.

Can someone confirm or deny what I was told?

It was this:
"Setup your limited company with 2 directors. You as one and your wife or mother as the other. Then resign after a short period with reasons of stress.
Your partner then hires you back to perform a contract for a client. Say 3-6 months work.
Then once you finish the clients contract, your partner lays you off (makes you redundant).
Assuming that you have a mortgage and mortgage payment insurance, you can claim against it for being made redundant. Therefore paying your mortgage while you are not working.."

Regards,
CM.

[Sockpuppet]

It was this:
"Setup your limited company with 2 directors. You as one and your wife or mother as the other. Then resign after a short period with reasons of stress.
Your partner then hires you back to perform a contract for a client. Say 3-6 months work.
Then once you finish the clients contract, your partner lays you off (makes you redundant).
Assuming that you have a mortgage and mortgage payment insurance, you can claim against it for being made redundant. Therefore paying your mortgage while you are not working.."

Erm yeah. No that won't work.

Either you will hold some shares for divi's hence self employed or you won't in which case you'll have to pay yourself PAYE to get the required history for a mortgage.

Also you'd have to have a permanant employment contract with yourco not be a contract with it so you would need to do more than just one contract....i.e. it be open ended.

Plus I'm pretty sure that the insurance will have a clause against this.

[BrilloPad]

Hi,

I am looking at entering the world of IT contracting. I have been in the IT Development industry for about 10 years and having had a string of disappointing jobs over the last 3 years has focussed my interest in setting up myself.

Anyway, having met and spoke to many contractors in my career, I heard something that might prove useful should it be true. It would help reduce the risk.

Can someone confirm or deny what I was told?

It was this:
"Setup your limited company with 2 directors. You as one and your wife or mother as the other. Then resign after a short period with reasons of stress.
Your partner then hires you back to perform a contract for a client. Say 3-6 months work.
Then once you finish the clients contract, your partner lays you off (makes you redundant).
Assuming that you have a mortgage and mortgage payment insurance, you can claim against it for being made redundant. Therefore paying your mortgage while you are not working.."

Regards,
CM.

I never ever take disability or unemployed cover. There are too many loopholes to stop things like that.

Insurance is a wonderful thing until you come to claim.

[threaded]

I do believe this is called fraud. Although saying that, the only people I've ever heard actually getting a payout from an insurance company have been fraudsters.

[Wilmslow]

Hi,

I am looking at entering the world of IT contracting. I have been in the IT Development industry for about 10 years and having had a string of disappointing jobs over the last 3 years has focussed my interest in setting up myself.

Anyway, having met and spoke to many contractors in my career, I heard something that might prove useful should it be true. It would help reduce the risk.

Can someone confirm or deny what I was told?

It was this:
"Setup your limited company with 2 directors. You as one and your wife or mother as the other. Then resign after a short period with reasons of stress.
Your partner then hires you back to perform a contract for a client. Say 3-6 months work.
Then once you finish the clients contract, your partner lays you off (makes you redundant).
Assuming that you have a mortgage and mortgage payment insurance, you can claim against it for being made redundant. Therefore paying your mortgage while you are not working.."

Regards,
CM.

What the fluckinghell????

Insurance fraud police alert

[malvolio]

Hi,

I am looking at entering the world of IT contracting. I have been in the IT Development industry for about 10 years and having had a string of disappointing jobs over the last 3 years has focussed my interest in setting up myself.

Anyway, having met and spoke to many contractors in my career, I heard something that might prove useful should it be true. It would help reduce the risk.

Can someone confirm or deny what I was told?

It was this:
"Setup your limited company with 2 directors. You as one and your wife or mother as the other. Then resign after a short period with reasons of stress.
Your partner then hires you back to perform a contract for a client. Say 3-6 months work.
Then once you finish the clients contract, your partner lays you off (makes you redundant).
Assuming that you have a mortgage and mortgage payment insurance, you can claim against it for being made redundant. Therefore paying your mortgage while you are not working.."

Regards,
CM.

Stay permie. You're too <insert perjorative adjective here> to make it as a contractor...

And the other bit that worries me - having had a string of disappointing jobs over the last 3 years - I think you need to look at yourself rather than your employers.

[Swiss Tony]

FFS As you will be classed as ‘self employed’ in their eyes, your mortgage protection insurance will be void anyway. Perhaps a better solution would be to take out some life assurance and then kill yourself, saving us all allot of bother.

HTH

[CodeMonkey76]

Very intelligent Tony. I bet you are the pride of your parents!

FFS As you will be classed as ‘self employed’ in their eyes, your mortgage protection insurance will be void anyway. Perhaps a better solution would be to take out some life assurance and then kill yourself, saving us all allot of bother.

HTH

Might I just say, that I was informed of this by a contractor of some 20+ years and was only asking as it seemed a bit dodgy myself.

Anyway, thanks for the flaming. Nice to know questions are welcome and the forum is filled with human beings!

[Peoplesoft bloke]

Hi,

I am looking at entering the world of IT contracting. I have been in the IT Development industry for about 10 years and having had a string of disappointing jobs over the last 3 years has focussed my interest in setting up myself.

Anyway, having met and spoke to many contractors in my career, I heard something that might prove useful should it be true. It would help reduce the risk.

Can someone confirm or deny what I was told?

It was this:
"Setup your limited company with 2 directors. You as one and your wife or mother as the other. Then resign after a short period with reasons of stress.
Your partner then hires you back to perform a contract for a client. Say 3-6 months work.
Then once you finish the clients contract, your partner lays you off (makes you redundant).
Assuming that you have a mortgage and mortgage payment insurance, you can claim against it for being made redundant. Therefore paying your mortgage while you are not working.."

Regards,
CM.

Good luck with that - let us know how you get on

[BrilloPad]

FFS As you will be classed as ‘self employed’ in their eyes, your mortgage protection insurance will be void anyway. Perhaps a better solution would be to take out some life assurance and then kill yourself, saving us all allot of bother.

HTH

Where is the coffee meet screen emoticon?