Options in hard times?

[dang65]

I'm in a contract at the moment, but aware that that could change at any moment on a whim from the client. Also aware that times is hard for many contractors just now.

So, just absently mulling over options. Would either/both of these possibilities be workable/legal if I was unable to get a good contract in future?

1. Based on this new government thing allowing people to take a two year break from mortgage payments. Could I take a lower paying contract, reduce my own income from my own company and then claim I'd lost income and take a break from paying the mortgage? This might tide over the "downturn", unless it drags on for years, which is possible I suppose.

2. Using reserve funds in my company bank account, could I take a low-paying (i.e. bog standard) permie job and at the same time pay myself, say, a grand a month from company reserves to top up my income? Again, to tide over the crisis, if it comes to that.

[tim123]

I'm in a contract at the moment, but aware that that could change at any moment on a whim from the client. Also aware that times is hard for many contractors just now.

So, just absently mulling over options. Would either/both of these possibilities be workable/legal if I was unable to get a good contract in future?

1. Based on this new government thing allowing people to take a two year break from mortgage payments. Could I take a lower paying contract, reduce my own income from my own company and then claim I'd lost income and take a break from paying the mortgage? This might tide over the "downturn", unless it drags on for years, which is possible I suppose.
.

Do you really think that they wont notice?

tim

[PAH]

2. Using reserve funds in my company bank account, could I take a low-paying (i.e. bog standard) permie job and at the same time pay myself, say, a grand a month from company reserves to top up my income? Again, to tide over the crisis, if it comes to that.

May as well go on a long holiday to somewhere that can be done on a grand a month. Some cheap deals to India at the moment. Dheli belly will only last the first few weeks, then it's party time!

Besides, you're more likely to be able to get your option 1 off the ground by doing that. Defer the mortgage till you get back!

[dang65]

Do you really think that they wont notice?

tim

I'm asking if it would be legal though, so it wouldn't matter if they notice. I'm not talking about doing anything on the sly. If my company is hit by the recession and suddenly has a much smaller turnover then it has to reduce its outgoings, so it reduces salaries and dividend payments to its employees and shareholders. As the employee, I'm suddenly left short because of this - just the same as any permie employee of a large corporation would be. So, I should be able to say that my income has dropped and I need to take a break from paying the mortgage, shouldn't I? Or are there completely different rules just because I'm the company director? Do I have to pay myself a large salary/dividend? I don't think so.

As for Option 2, I'm not in a position to just go travelling because I have kids at school etc. Also, just taking a mortgage payment holiday wouldn't absolve me of council tax, water rates etc so I still need to work and get paid.

What I'm trying to get at with these options is a way to maintain lifestyle and keep hold of property at a time when contracting rates are likely to plummet even if the contracts themselves don't competely dry up.

The question still stands then: Would these options be legal and workable?