Crossroads

[gables]

right guys, I've realised where I've gone wrong...

I had another look at the detailed breakdown this time rather then just taking the figure of £3442 (derived from £350 day rate) and times that by 10 (10 months, 1 month for holiday and 1 month for looking for a contract)

After looking at the break down, £3442 actually accounts for 44 weeks, which means 6 weeks off per year, plus £6000 in expenses. So provided I only take 3 weeks holiday and have 3 weeks bench time per year, I would be better off by 7k per year.

Permie @ 46k = £34k net
contractor @ £350 per day = £41304. (inside ir35)

so now the question is = does 7k compute against the risk of longer bench time & defacto permie land offer 25 days of holidays, so I am short changing myself by 2 weeks.

Only you can answer that, and as pointed out earlier by others, it's not just about money.

[unixman]

Sorry gables I still don't agree with your calculations. They seem to be off my tens of thousands. Have you tried working it out manually from scratch, rather than relying on an internet web page? If your calcs were true, it is unlikely that any contract market would exist.

[gables]

Sorry gables I still don't agree with your calculations. They seem to be off my tens of thousands. Have you tried working it out manually from scratch, rather than relying on an internet web page? If your calcs were true, it is unlikely that any contract market would exist.

Okey dokey, here we go, trying manually using HMRC guidance and HMRC spreadsheet, and keeping it as simple as possible, so no clever dickery with 'expenses' just the 5% allowed:

£350/day for 44 weeks = £77,000 turnover

5% unspecified expenses = £3850 (spent on accountant, etc) leaves £73150 from which to renumerate

Let's pay a gross salary of £65260 which attracts employer's NIC of £7886.42 = total = £76996.42 this leaves a deemed payment of £3.58, so we've paid as much as possible via PAYE

Salary of £65260 = £3764.71 /month net = £45176.52/year net

Which compares with a permie £45kgross/year netting £2785.48/month and £33425.47/year


Hopefully that's correct??

[northernladuk]

I've forgotten what we were trying to achieve after all these re-iterations of numbers that aren't really comparable anyway.

[gables]

I've forgotten what we were trying to achieve after all these re-iterations of numbers that aren't really comparable anyway.

In my defence, the OP did make the initial comparison but basically he wants to know if he should contract or go permie, not sure I helped

[PurpleGorilla]

Why compare an annual salary with 10 months of contracting. It makes no sense. OP, if you are on £350+ a day you will kick the tulip out of a permie job.

[northernladuk]

In my defence, the OP did make the initial comparison but basically he wants to know if he should contract or go permie, not sure I helped

IDI

[gables]

Why compare an annual salary with 10 months of contracting. It makes no sense. OP, if you are on £350+ a day you will kick the tulip out of a permie job.

I think he's realised that, using 10 months versus 12

[gables]

IDI

IDI??

[wantacontract]

In my defence, the OP did make the initial comparison but basically he wants to know if he should contract or go permie, not sure I helped

gables you did help.....

will provide a ending to this tale in two weeks time....