I've been contracted to a large multi-national for a couple of years, outside of IR35. This contract ends in the next couple of months and due to rules many levels up from the department I'm working in, they can't offer another contract because it's already been two years. I have to either go permie (which they've offered), or leave. I've been in this position before and usually I'd just wish them well and move on. However in this case I'm a lot more technically and emotionally invested in the project and it's a small team, so I want to stay around and get it much further down the line.
My manager and I have discussed that if I took a permie, it would be in the understanding that I would be mentally treating it like a contract and I may well resign in 6 or 12 months. I'd be keeping my limited company open and so on. However, I can't work out or decide whether this is a terrible idea for a number of reasons. I worry how HMRC will look at the two years of outside-IR35 status, or how horribly complicated my self-assessment will get and whether it'll trigger higher tax payments because I can no longer control my personal income from the company. Also my company pays big pension contributions but if that income into the company dries up, I have a problem there (the permie would come with its own pension, though how much use that is for 12 months work, not sure).
I think the financial implications will be hugely negative, but I haven't a chance of working that all out! We've not discussed what the salary would be, but I wouldn't know what it would need to be in order to balance things out.
Anyone been in this position?
Thanks for any thoughts and advice.
My manager and I have discussed that if I took a permie, it would be in the understanding that I would be mentally treating it like a contract and I may well resign in 6 or 12 months. I'd be keeping my limited company open and so on. However, I can't work out or decide whether this is a terrible idea for a number of reasons. I worry how HMRC will look at the two years of outside-IR35 status, or how horribly complicated my self-assessment will get and whether it'll trigger higher tax payments because I can no longer control my personal income from the company. Also my company pays big pension contributions but if that income into the company dries up, I have a problem there (the permie would come with its own pension, though how much use that is for 12 months work, not sure).
I think the financial implications will be hugely negative, but I haven't a chance of working that all out! We've not discussed what the salary would be, but I wouldn't know what it would need to be in order to balance things out.
Anyone been in this position?
Thanks for any thoughts and advice.
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