What the hell?!?

[malvolio]

Hourly rate * 100 = annual permie salary. !!

Sorry? It's the usual rule of thumb - bit like to go centigrade to farenheit, double it and add 30. To cover the equivalent of £40k you need £40 an hour for the average 10 months a year contractor. If you can guarantee work for 12 months, obviously it comes down, and it goes a bit astray at the extremes.

[Smurf]

So guys, If I'm not caught by IR35 and I get the standard 10,000 per quarter how much of that could I expect to see make it to my bank account after NI contributions and what ever else I would have to pay?

I like this idea of parralel contracts as with all the free time I'll have that's where contracting could really start paying off for me. I'll have to wait and see the specifics of the contract, IF that's what happens and IF I get offered one , and the other work would need to be pretty flexible but it would be great if it's possible.

I must admit I'm hopeless at paperwork so it's a little daunting but if it means I can buy that chopper I've had my eye on then it'll be worth it

[malvolio]

So basically, you know sod all about contracting and understand less. OK, go read the guides at http://www.contractoruk.com/first_timers/index.html and www.pcg.org.uk, when it will become a bit clearer.

To answer the question, you can budget on keeping 65%-ish of your gross as take home, but be very clear about what is company money and what is yours - mix them up and you go to jail. This is not a game, it is a serious career choice.

[oraclesmith]

Sorry? It's the usual rule of thumb - bit like to go centigrade to farenheit, double it and add 30. To cover the equivalent of £40k you need £40 an hour for the average 10 months a year contractor. If you can guarantee work for 12 months, obviously it comes down, and it goes a bit astray at the extremes.

40 * 100 = 4000

Shouldn't it be hourly rate * 100 hours per month * 10 months per year ?

[oraclesmith]

but if it means I can buy that chopper I've had my eye on then it'll be worth it

So you're an axe murderer, a schoolkid, a crazy biker dude, a pre-op transexual, or you earn a lot more than you're letting on !!

[Smurf]

So basically, you know sod all about contracting and understand less. OK, go read the guides

WHAT! I have to find out off my own back? Well if this is what it's like in the contracting I'm off back to permie land where I get spoon fed and other people do the hard work for me

I'll read up but it's nice to get a few basics first so I really appreciate allthe answers guys

[lukemg]

Don't sweat the paperwork, I use a managed limited from SJD, it costs but takes ALL the pain away and you just wait for the cash. Umbrella works similar for inside IR35 (get contract checked, if you can get another contract I would try to claim outside)
Retainer sounds sweet, start looking for contract work in your skill set, you can't lose. If you score something (stay localish) you should be able to get some time off/work nights/weekends etc if the old place needs you in for a few days, especially after the first few months.

[malvolio]

40 * 100 = 4000

Shouldn't it be hourly rate * 100 hours per month * 10 months per year ?

Bugger - it's not my maths need improving, it's my typing and reading skills...

Should have been (hourly * 1000), so £40 an hour = £40k pa.

Shuffling sounds from the cupboard as Malvolio digs out his "Mavis Teaches Typing" ...

[malvolio]

WHAT! I have to find out off my own back? Well if this is what it's like in the contracting I'm off back to permie land where I get spoon fed and other people do the hard work for me

I'll read up but it's nice to get a few basics first so I really appreciate allthe answers guys

No problem. You will forgive us being a bit tight but every couple of weeks we get a post asking us to tell them everything about everything. The generic rule has evolved into "Read the guides first and then ask intelligent questions and we'll help", partly because if you can't find out for yourself you will rapidly sink as a contractor.

[lexington_spurs]

...Am I supposed to do?

Wouldn't it be spiffy if every post which asked "What am I supposed to do" finished with a little nugget on what the OP actually did.