Contractor vs Permie Comparison spreadsheet

[l35kee]

I'd be paying travel and subsistence because I'd still need to travel to get to work. Whilst I use my laptop for work, there's also an amount of personal use which I understand in the case of a laptop is permitted.

Exactly. I include most of my expenses as part of my take home, because I'd be paying for them anyway even if I was a permie.

Mobile phone, mileage, childcare, laptop, lunch etc. Childcare and milage is about an extra £550 a month without anything else included.

[malvolio]

I'd be paying travel and subsistence because I'd still need to travel to get to work. Whilst I use my laptop for work, there's also an amount of personal use which I understand in the case of a laptop is permitted.

Then you need to negotiate your salary to allow for the extra personal cost. Personal of the laptop will be defined by your employer's mandatory Appropriate Use Policy so again this is an unanswerable question. Given a workable laptop is £300 or so, why not have your own anyway?

I have worked out the costs mentioned, I use InTouch. I guess the question I have is, do I subtract the amount from a permanent salary after tax to take into account this expenditure?

OK, so the answer IMHO is "No". To be precise the question doesn't arise, since you are no longer liable for those costs. That is where it goes wrong; you can't really compare contract and permie employment income directly in the way you are trying to do. All you can do is what has been suggested - define how much you need and work back from there to a salary then add a percentage for fun stuff. Anything over that is a bonus

[TheFaQQer]

Whilst I use my laptop for work, there's also an amount of personal use which I understand in the case of a laptop is permitted.

You already have a laptop, so why would you factor that into the costs? Your employer will give you a laptop if you need one for work, and most will allow / expect some personal use so you are unlikely to need to buy a third device.

Instead of comparing exact line item to exact line item, you would be better off working out what you need, changing that to what you want, add some leeway for some extra fun items / emergency stuff / savings and then looking at what permie salary you would be after when you have those figures.

Are you looking at permanent positions at the moment?

[MrWebDev]

Then you need to negotiate your salary to allow for the extra personal cost. Personal of the laptop will be defined by your employer's mandatory Appropriate Use Policy so again this is an unanswerable question. Given a workable laptop is £300 or so, why not have your own anyway?

You already have a laptop, so why would you factor that into the costs? Your employer will give you a laptop if you need one for work, and most will allow / expect some personal use so you are unlikely to need to buy a third device.

OK, I realise for the reasons outlined above the laptop example is a pretty bad one as it's not exactly a regular expense I'd need to consider.

Are you looking at permanent positions at the moment?

I've had an interesting discussion which has led to the potential offer of a permanent position, the "We'd like you to come here, what would you want from a perm position" type conversation. I also think many on here would agree that it's always good to know how much one could potentially earn annually etc, whilst my accountants give me a dashboard this is more of a rolling total.

On a slight tangent doing this has also shown me that my company isn't as 'tax efficient' as I thought it was. As a % of the turnover, what would you all expect to be able to take home (net) on average?

[malvolio]

OK, I realise for the reasons outlined above the laptop example is a pretty bad one as it's not exactly a regular expense I'd need to consider.



I've had an interesting discussion which has led to the potential offer of a permanent position, the "We'd like you to come here, what would you want from a perm position" type conversation. I also think many on here would agree that it's always good to know how much one could potentially earn annually etc, whilst my accountants give me a dashboard this is more of a rolling total.

On a slight tangent doing this has also shown me that my company isn't as 'tax efficient' as I thought it was. As a % of the turnover, what would you all expect to be able to take home (net) on average?

Around 70% of gross.

As for salary, research the market: what are other people offering for comparable positions. Even then, it is rarely simple to come up with a mutually acceptable figure.

[l35kee]

OK, I realise for the reasons outlined above the laptop example is a pretty bad one as it's not exactly a regular expense I'd need to consider.



I've had an interesting discussion which has led to the potential offer of a permanent position, the "We'd like you to come here, what would you want from a perm position" type conversation. I also think many on here would agree that it's always good to know how much one could potentially earn annually etc, whilst my accountants give me a dashboard this is more of a rolling total.

On a slight tangent doing this has also shown me that my company isn't as 'tax efficient' as I thought it was. As a % of the turnover, what would you all expect to be able to take home (net) on average?

80%+

[MrWebDev]

As for salary, research the market: what are other people offering for comparable positions. Even then, it is rarely simple to come up with a mutually acceptable figure.

Oh for sure I'm also doing that too, but I'd like to translate how that compares to what I'm getting now, though I realise I should take other benefits into account too such as private healthcare, pension contributions, paid for training etc etc.

70%-80% - Am I correct in presuming this is after all taxes (biz & personal) are paid?

[northernladuk]

80%+

90%'ish

[l35kee]

Oh for sure I'm also doing that too, but I'd like to translate how that compares to what I'm getting now, though I realise I should take other benefits into account too such as private healthcare, pension contributions, paid for training etc etc.

70%-80% - Am I correct in presuming this is after all taxes (biz & personal) are paid?

Yeah, take home. Having a wife/partner helps.

[MrWebDev]

90%'ish

90%'ish I bet