65k + 25 Days Holiday + 10% Pension + Health + Potentional 20% Bonus Vs Contract

**ChimpMaster** · 31 July 2009, 14:28

Personally I wouldn't take £390/day over the permie package you detail. It's your first contract so you're probably getting rogered by the agent over the rate. The agent is probably creaming off anywhere from £150 to £200 on top of the £390 so they have flexibility to pay you more, assuming the client really wants you.

Contact the agent and tell them that you have another offer in hand (boost it up more if they ask you for details). Ask for £500/day. Then it would be worthwhile over the permie package.

Negotiate hard over the contract - after all you have the solid permie offer to fall back on, and you wouldn't want to be having second thoughts if you did accept the contract.

**DaveB** · 31 July 2009, 14:32

That permie package is pretty much what I took when I went to the dark side in January.

£390 sounds like a lot as a day rate but I'd still take the permie package on that one.

If you can bump the rate to £500 then go for it.

Don't count on working all year, you could get canned after 3 months.

**deckster** · 31 July 2009, 14:44

Absolute no-brainer. £390 as a contract rate is nowhere near that permie package.

Mind you, both sound on the low side for IB work.

**BlasterBates** · 31 July 2009, 14:46

Your take home for 390 after all costs will 54k, and that inicludes 20 days holiday. Everything is factored in that, and assumes outside IR35.

Your take home for 60K will be about 37K and then 6 K into a pension scheme and then 7K bonus.
50K

Virtually no difference

I would still take the contractor route as after a few months you could easily get 500.

**SteveMcadden1** · 31 July 2009, 14:56

Originally posted by BlasterBates View Post

Your take home for 390 after all costs will 54k, and that inicludes 20 days holiday. Everything is factored in that, and assumes outside IR35.

Your take home for 60K will be about 37K and then 6 K into a pension scheme and then 7K bonus.
50K

Virtually no difference

I would still take the contractor route as after a few months you could easily get 500.

I am pretty strong at calculus but cannot make this add up...

Can you breakdown your working here?

390 * 240 = 93 600

Taken out as 22% tax - I have a lot of savings so do not need to take any money out from company and can wind the company down using entreprenurial tax rul and pay 10% tax.

I cannot see how the other package is better AFTER tax.

The contract I have is firmly outside IR35

**moorfield** · 31 July 2009, 15:53

Potentional 20% Bonus

In my book this means zero, but then again I'm a bitter twisted cynical long-in-the-tooth contractor.

**deckster** · 31 July 2009, 16:13

Originally posted by SteveMcadden1 View Post

I am pretty strong at calculus but cannot make this add up...

Can you breakdown your working here?

390 * 240 = 93 600

Taken out as 22% tax - I have a lot of savings so do not need to take any money out from company and can wind the company down using entreprenurial tax rul and pay 10% tax.

I cannot see how the other package is better AFTER tax.

The contract I have is firmly outside IR35

Well duh. Of course that package is better if you don't actually take it out of the company. You omitted to mention that particular little gem!

**SteveMcadden1** · 31 July 2009, 16:17

Originally posted by deckster View Post

Well duh. Of course that package is better if you don't actually take it out of the company. You omitted to mention that particular little gem!

Really? I d even go as far as saying its worth borrowing money from the bank paying interest secured on the company assets then take the cash out...

Seriously, how else would people take money out of the company?

**BrilloPad** · 31 July 2009, 16:22

I would take the contract. I dont care which way you get paid more : as a permie IBs treat you like dirt. As a contractor you get a tiny bit of respect.

65k + 25 Days Holiday + 10% Pension + Health + Potentional 20% Bonus Vs Contract