Crossroads

[unixman]

if I lived down south, then yes, local contracts would be fine, but I live in a city that's pretty poor for it contracts....

I too thought what with the economy booming, that contracting would finally emerge from the doldrums, instead I find it worse....and may get really bad post April 16....sigh.....I've just worked out that after expenses and tax and provisioning for 2 months downtime a year for holidays (4 weeks) and 1 month looking for new contract, I'm a thousand pounds better off then a permie with a 50k wage....

What daily rate were you using in the calculations?

[wantacontract]

What daily rate were you using in the calculations?

£400 day rate, the minus expenses to become £350.

2 months off per year, for holidays and bench time.

[diseasex]

£400 day rate, the minus expenses to become £350.

2 months off per year, for holidays and bench time.

Why not get 3-4 months gig a year? this way you'll earn the same as perm...

[Bozwell]

£400 day rate, the minus expenses to become £350.

2 months off per year, for holidays and bench time.

Even at £400 per day it's got to be more than double a £40K salary? Seems to be at the low end for PM rate from what I have seen, but I'm in the South East.

[Danglekt]

£1000 per MONTH better off surly? Thats £12k per year take home...not to be sniffed at when HMRC would need you to earn nearly twice that much to let you keep the 12k.

[unixman]

£400 day rate, the minus expenses to become £350.

2 months off per year, for holidays and bench time.

Something not quite right there. 10 months solid working is about 218 days. That is 87k income, or 76k subtracting expenses. And permies pat for their petrol too.

[wantacontract]

sorry, I should have mentioned under the proviso of this new direction and control, which places us into paye/ir35 (unless I've totally misunderstood it...)

so using contractorcalc, it comes out at £3442 per month, which at 10 months would be £34k ish, full time permie job @ circa £45k comes out at £33.5k.....

hope that clears it up...

[unixman]

Not clear. You are earning 87k and have only 34k left after tax ? It should be more like 58k, assuming your overall tax rate to be 33% (which is usually is under PAYE and including everything, *very roughly* and in my experience).

34k out of 87k sounds like a 61% overall tax rate.

Even working under PAYE, contractor salary usually dwarfs permy salary for a similar role.

[gables]

Hmm..

Using contractorcalculator with £400/day for 44 weeks (220 days) total £88k and inside IR35 the net pay/month over the year is £4081 and suggests to earn this as permie requires £71,803/year

£40k on salary calculator nets £2523 and £71803 nets £4080 confirming above

[northernladuk]

Hmm..

Using contractorcalculator with £400/day for 44 weeks (220 days) total £88k and inside IR35 the net pay/month over the year is £4081 and suggests to earn this as permie requires £71,803/year

£40k on salary calculator nets £2523 and £71803 nets £4080 confirming above

A lot of problems with this as a comparison though... Permie beast is so different you can't just base it on gross figures... All the benefits the permie get's is worth a hell of a lot so very difficult to find a true comparison unfortunately.