Amarach1975
Registered User
- Messages
- 16
We moved back from the Uk three months ago. My husband handed in his notice. The company wanted to keep him, and they came to an agreement whereby he'd work from home and go over once a month.
The company is question is in administration. It's been chaos over the last few months with employees not getting paid on time. However it has been taken over by the former silent partner who has poured more money into it, and he plans to take over the MD role.
I'm a higher rate taxpayer. DH wouldn't be.
The new MD has suggested it would be easier if DH became a contractor.
I think it's worth investigating. I know there would be some set up costs, but the tax savings would be significant for us.
The main risks are :
- he wouldn't get redundancy if the company folded. However he'd only get the bare minimum anyway,and he is only there three years as an employee.
- He wouldn't get job seekers if the company folded. However, given we actually have decent savings for the first time in our lives (we are renting and saving the money from the sale of the UK house until we buy here), i think that could be an issue if he were to try to claim jobseekers.
- As a contractor, there is a higher risk of not getting paid, or paid late. However the cashflow situation does seem to have eased. Also, in that company even being an employee doesn't guarantee you'll be paid. At the moment, he's pretty much working to pay the creche fees (we have two kids), so we're not majorly up s8*t creek if he does lose his job as we're dependent on my take home for all the day to day expenses. That said, him being in work would help when it comes to mortgage applications.
Any advice welcome. thanks in advance.
The company is question is in administration. It's been chaos over the last few months with employees not getting paid on time. However it has been taken over by the former silent partner who has poured more money into it, and he plans to take over the MD role.
I'm a higher rate taxpayer. DH wouldn't be.
The new MD has suggested it would be easier if DH became a contractor.
I think it's worth investigating. I know there would be some set up costs, but the tax savings would be significant for us.
The main risks are :
- he wouldn't get redundancy if the company folded. However he'd only get the bare minimum anyway,and he is only there three years as an employee.
- He wouldn't get job seekers if the company folded. However, given we actually have decent savings for the first time in our lives (we are renting and saving the money from the sale of the UK house until we buy here), i think that could be an issue if he were to try to claim jobseekers.
- As a contractor, there is a higher risk of not getting paid, or paid late. However the cashflow situation does seem to have eased. Also, in that company even being an employee doesn't guarantee you'll be paid. At the moment, he's pretty much working to pay the creche fees (we have two kids), so we're not majorly up s8*t creek if he does lose his job as we're dependent on my take home for all the day to day expenses. That said, him being in work would help when it comes to mortgage applications.
Any advice welcome. thanks in advance.