Contracting to Permanent

[DavidC]

I probably move to Permanent from contracting, and I've been trying to find out answers what would happen to my Ltd company.

Saw this post
http://www.access-programmers.co.uk/forums/showthread.php?t=128140

I got some answers that I can still keep Ltd company running (It will continue to do business as I do get some business out of it apart from my regular contracting)

One last unanswered question is "Any issues with being Director of my own company and doing permie job?"

Cheers.

 

[neileg]

Your contract with your employer may specify that you can only do other work with their knowledge and persmission. There's nothing in tax law or company law that prevents you continuing as a director.

 

[Ron_dK]

There's nothing in tax law or company law that prevents you continuing as a director.

Apart from paying double tax, that is ?

 

[neileg]

You only pay tax on what you earn. If you have two lots of earnings, you pay two lots of tax!

 

[Rich]

You only pay tax on what you earn. If you have two lots of earnings, you pay two lots of tax!

I thought ltd companies only paid tax on the wage they drew?

 

[neileg]

I thought ltd companies only paid tax on the wage they drew?

Limited companies pay corporation tax on their profits. Directors or other employees pay tax on their fees or other earnings taken from the company. So if you draw more salary as a director, the company pays less corporation tax (because the profit goes down) but your income tax goes up.

 

[Rich]

Limited companies pay corporation tax on their profits. Directors or other employees pay tax on their fees or other earnings taken from the company. So if you draw more salary as a director, the company pays less corporation tax (because the profit goes down) but your income tax goes up.

They get us every bloody way they can

 

[Darth Vodka]

Apart from paying double tax, that is ?

you don't pay double tax, your company either employs you as PAYE (sorry an UK here!) and takes the tax off for you and asks for a bank account, or they ask for a company name and don't deduct the tax, leaving it to you

if you stay director of a company, your new employer may well stipulate that have to declare your business interests when you join

most of the declaration is to prevent conflict of interests, if you're joining a company that trades oil and you're on the board of BP, it'd be a problem...

it's also to avoid moonlighting

if you say "oh i'm director of my old LTD company that i was contracting on" i'm sure it'd be fine, but read your contract, it may forbid directorship

 

[maurice]

I think it depends on the contract you are going to have with your employer. If the bond permits and there is enough time to handle your business, you could handle both the things at the same time. Good luck.

 

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