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 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.
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