Help me calculate salary equivalent

[contractor79]

Hi everyone

I need some help with numbers here.

I have contracted my services out at £400-500/day for the last 3 years. Only had say 6 months without invoicing if I count up unemployment, sick and holidays. So I invoiced £270k, say.

Expenses (excluding salary), well these varied but let's say no more than £1.5k/month for when I worked so about 30 months that's £45k, say.

That's a 'profit' of about £270 minus £45k = £225k before any taxes over 3 years.
This means £75k to pay myself.

Someone called me about a 2-year job but I would be paid as a permie and receive permie benefits but the job is only 2 years. So I wouldn't be invoicing just getting paid a set amount each month.

I need to tell them how much I want.

I'm thinking ask for £75k plus the expenses which for this job I think will be £1k/month, so we're talking about £87k.

Is this reasonable, is there anything I've missed out here? I realise you get taxed more on a £75k salary but hey this is 2 years of no hassles no interviews just work in one place.

HOWEVER, I don't think they will pay as much as this. I am prepared to take a knock for the fact it is stable and I receive other benefits, but not too much.

[Olly]

errrrrrrr.......it's demand and supply init!

you ask for the max you think they can/will pay if that's less than you'll work for then you don't do it...simples!!!

P.S. Permie salaries seem depressingly low...you have to pretty desirable to attain nearly 90K

[contractor79]

errrrrrrr.......it's demand and supply init!

you ask for the max you think they can/will pay if that's less than you'll work for then you don't do it...simples!!!

P.S. Permie salaries seem depressingly low...you have to pretty desirable to attain nearly 90K

Like I say, I don't think they will pay anything like that

[Hex]

There are calculators here that may help: http://www.ir35calc.co.uk/

[deckster]

Standard rule of thumb is permie salary = hourly rate * 1,000 - your £500/day comes out at maybe £65k. Obviously every circumstance is different, but I'd say your £87k is optimistic for a permie equivalent of a £500/day contract.

Even then, in my experience the companies offering these fixed term contracts are Indian outsourcers and as you say they are highly unlikely to pay anything close to that.

[contractor79]

Standard rule of thumb is permie salary = hourly rate * 1,000 - your £500/day comes out at maybe £65k. Obviously every circumstance is different, but I'd say your £87k is optimistic for a permie equivalent of a £500/day contract.

Even then, in my experience the companies offering these fixed term contracts are Indian outsourcers and as you say they are highly unlikely to pay anything close to that.

thanks, yes I should have read my own sig shouldn't I !