Contractor or Perm?

[Oakleaf]

Hi,
Just have been landed a job with options to go contracting or perm.

The new offer is either 280 pounds per day or 50K perm with standard benefit.

I have never done Contracting before, but feel like should give it a go.

What would you choose or advise?

Thank you.

[SueEllen]

The 50K perm.

The £280 per day isn't the equivalent of 50K perm. It is more like £25K perm.

[Anonimouse]

One of us can't add up, even working 48 weeks It doesn't make 25k

[northernladuk]

If you've got the option to go permie or contract you'll be inside IR35.

[Oakleaf]

If you've got the option to go permie or contract you'll be inside IR35.

Outside IR35.

[Oakleaf]

Thanks all.
But why I did online calculator, it works out net taken is much more for contracting option?

280x5x48wks = 67.2K
Taken home net: 50k?

Sorry I am new to here, may have got some figures wrong?

[Bee]

Thanks all.
But why I did online calculator, it works out net taken is much more for contracting option?

280x5x48wks = 67.2K
Taken home net: 50k?

Sorry I am new to here, may have got some figures wrong?

Calculating taxes is a nightmare.
Probably anybody here could indicate a good tool for you.
I can't help you because I'm not living in the UK.

[PurpleGorilla]

Thanks all.
But why I did online calculator, it works out net taken is much more for contracting option?

280x5x48wks = 67.2K
Taken home net: 50k?

Sorry I am new to here, may have got some figures wrong?

The 50k permie job will come with pension, paid sick leave, paid holidays, paid bank holidays, training, etc.

On contract absolutely everything you will pay for yourself. And you'll need to pay for everything yourself.

FWIW I left £58k permie for £425/d contracting.

Now earning over £500 a day and wouldn't take less than £75k as a permie.

48 weeks a year 240 billed days. Burn out territory mate.

First gig is gravy, try maintaining that work rate and bill rate over 3-4 years, and half a dozen clients.

[Bee]

The 50k permie job will come with pension, paid sick leave, paid holidays, paid bank holidays, training, etc.

On contract absolutely everything you will pay for yourself. And you'll need to pay for everything yourself.

FWIW I left £58k permie for £425/d contracting.

Now earning over £500 a day and wouldn't take less than £75k as a permie.

48 weeks a year 240 billed days. Burn out territory mate.

First gig is gravy, try maintaining that work rate and bill rate over 3-4 years, and half a dozen clients.

If the difference is so big, why they are offering this kind of option?

A naive person would fall like a duck. I'm shocked

[malvolio]

The two rates are the same cost to the employer. Take the perm option or let them avoid all their responsibilities to their staff. That contract option is a con, end of.