IT Contractor going back permy... anyone done the same?
Discussion
Afternoon all!
I've been contracting in IT just over a year. It's been good fun so far, but I've been offered an excellent opportunity of permanent emplyment which I'd be daft not to take.
So, the last time I hinted that I might go permy my accountant (SJD) were quite a bit scare monger-y in the costs of closing down a company/going back to permanent employment. I think that was more to do with me not being with them longer than a year (as I was contracted to), but I'm going to hold off contacting them for a couple of days until I sign the permy contract...
Now as per ever with this kinda of thing, I turn to you PH, to guide me!
Company is just over a year old, does it really NEED to be closed down? What are the costs involved with doing this, if so?
If anyone has done this themselves and can share their experience, and some do's and don'ts, that would be grand!
Cheers all,
Dan
I've been contracting in IT just over a year. It's been good fun so far, but I've been offered an excellent opportunity of permanent emplyment which I'd be daft not to take.
So, the last time I hinted that I might go permy my accountant (SJD) were quite a bit scare monger-y in the costs of closing down a company/going back to permanent employment. I think that was more to do with me not being with them longer than a year (as I was contracted to), but I'm going to hold off contacting them for a couple of days until I sign the permy contract...
Now as per ever with this kinda of thing, I turn to you PH, to guide me!
Company is just over a year old, does it really NEED to be closed down? What are the costs involved with doing this, if so?
If anyone has done this themselves and can share their experience, and some do's and don'ts, that would be grand!
Cheers all,
Dan
Nick Grant said:
I've been roughly:
1996-1998 Perm
1998-2000 Contract
2000-2002 Perm
2002-2004 Contract
2004-2011 Perm
2011-current Contract
So yes, you can do this no problem.
Providing you have kept enough cash in the company to cover your VAT and corporation tax you should be able to close it easy enough.
Yep, I haven't taken a dividends recently as I had a feeling this opportunity would surface! So should be plenty there to cover the bills. 1996-1998 Perm
1998-2000 Contract
2000-2002 Perm
2002-2004 Contract
2004-2011 Perm
2011-current Contract
So yes, you can do this no problem.
Providing you have kept enough cash in the company to cover your VAT and corporation tax you should be able to close it easy enough.
UpTheIron said:
OP, have you had multiple clients / contracts over the year or so? If not you might be in for a little bit of a shock wrt to any travel expenses you have claimed...
2 contracts, both with fixed locations. I was always a bit soft on the expenses stuff anyway. All I claim is my daily mileage at the moment. Heard of people claiming all sorts of daft stuff, but tried to keep it simple.
Think it will still bite me in the ass?
Hey guys,
Had the following back from the accountant, sound reasonable? I'd probably go with the closing down route. Seems a bit strong money?
In regards to the company, you have now two options:
1. You can keep company dormant – that would give you the option to start trading again at any time. The fees would go down to £48 per month (including VAT) from new company year.
2. You can close the company and we can help you with that. If you go with this option, you will stop paying the SJD fees from the following months after closure date (I think it is now too late to avoid the November 2016 fees but definitely from December 2016 you would not have to pay for SJD fees). There is a closure cost of £360 for the companies with reserves below £25,000.
With closure, we prepare the closure accounts, closing VAT/ PAYE scheme and also would prepare 2016-17 tax return for you later on. I will be issuing you as well P45.
Had the following back from the accountant, sound reasonable? I'd probably go with the closing down route. Seems a bit strong money?
In regards to the company, you have now two options:
1. You can keep company dormant – that would give you the option to start trading again at any time. The fees would go down to £48 per month (including VAT) from new company year.
2. You can close the company and we can help you with that. If you go with this option, you will stop paying the SJD fees from the following months after closure date (I think it is now too late to avoid the November 2016 fees but definitely from December 2016 you would not have to pay for SJD fees). There is a closure cost of £360 for the companies with reserves below £25,000.
With closure, we prepare the closure accounts, closing VAT/ PAYE scheme and also would prepare 2016-17 tax return for you later on. I will be issuing you as well P45.
I've gone down the "close the company" route.
Though my accountant did say they would charge me a full months accountancy for working the first two days in December (my scheduled last days at current job). Squeezing every penny out of me for sure!
I think those days will go down as November overtime..
Though my accountant did say they would charge me a full months accountancy for working the first two days in December (my scheduled last days at current job). Squeezing every penny out of me for sure!
I think those days will go down as November overtime..
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