Are my assumptions correct

[max]

Having said that it is a risk. If I were you I would try and get your first contract in the bag before you hand in your notice for your permie job.

It appears the city contractor market has been sideswiped by the on going credit "crisis"

Check out jobstats.co.uk

Detetica who also provide IT services to the banks warned today on their outlook.

25% share price hit.

[mailric]

wow. sometimes i realise i'm not as clever as i thought.

[Archangel]

How can that be? If you run 450 a day through the ir35 calc, you get a monthly net of about 5,600 which would require a salary of about 104,000..

?

What about:
Holiday pay
Sick pay
Time off between contracts
Pension
Other benefits
Etc etc

£450 a day 5 days a week 52 weeks a year would maybe equate to £100k with no benefits
£450 a day 5 days a week, 40 weeks a year, probably more like £60k + benefits

I usually go on hourly rate * 1000 (so approx 56k for £450/8)

[Bluebird]

How can that be? If you run 450 a day through the ir35 calc, you get a monthly net of about 5,600 which would require a salary of about 104,000..

?

It's not about eqality in money terms - keep up !!

If you are a PM on about £450 per day - the same job would not be advertised for a permie role as £100,000 pa.

A permie job for a PM would more than likely attrach a salary of about £45k.

[monkeyBoy32]

What about:
Holiday pay
Sick pay
Time off between contracts
Pension
Other benefits
Etc etc

£450 a day 5 days a week 52 weeks a year would maybe equate to £100k with no benefits
£450 a day 5 days a week, 40 weeks a year, probably more like £60k + benefits

I usually go on hourly rate * 1000 (so approx 56k for £450/8)

Well -the ir35calc (http://calculator.contractoruk.com/) works out your year based on working 44 weeks which, ok, might be optimistic but even when you take all the above into consideration I'd still rather take home £5,615 a month on a £450 a day contract outside ir35 than £3423 a month on a 60k perm job.

Then again, 60k is not exactly a bad salary is it..

What am I missing?

[Bluebird]

Well -the ir35calc works out your year based on working 44 weeks which, ok, might be optimistic but even when you take all the above into consideration I'd still rather take home £5,615 a month on a £450 a day contract outside ir35 than £3423 a month on a 60k perm job.

Then again, 60k is not exactly a bad salary is it..

What am I missing?

yes - thats why a lot of us do contracting rather than permie work !!!


However there are additional benifits to being permie which need to be added into the equation....
How much does a company put into your pension fund ?
How many hours do you work as a contractor which you don't get paid for - ie contract search, interviews, accounts ect.
What additional expenses do you incur as a business ? Fees, Insurance etc.

All of these things either add to the figure of £3423 or detract from the £5615.

But at the end of the day contracting can be rewarding from a financial point of view, I personally do it for the lifestyle - I don't think anybody should do it purely for the money.