Permie asking contracting questions

[coolhandluke]

I was on 60k with 6 weeks paid leave and 10k pension pot each year.

I'm still better off on £300 per day never mind £500, plus there is always light at the end of the tunnel which is priceless.

[mudskipper]

I was on 60k with 6 weeks paid leave and 10k pension pot each year.

I'm still better off on £300 per day never mind £500, plus there is always light at the end of the tunnel which is priceless.

You are seriously underselling yourself.

[pr1]

I was on 60k with 6 weeks paid leave and 10k pension pot each year.

I'm still better off on £300 per day never mind £500, plus there is always light at the end of the tunnel which is priceless.

found one of DodgyAgent's contractors

[LondonManc]

Contracting is not about the money primarily, it's about the way of life.

I typically budget on working 38 weeks a year, so a 180-day rate multiplier is probably a more realistic figure for you; 220 days is 44 weeks a year and great when you do it.

[TheFaQQer]

I was on 60k with 6 weeks paid leave and 10k pension pot each year.

I'm still better off on £300 per day never mind £500, plus there is always light at the end of the tunnel which is priceless.

If you bill every day of the year apart from weekends and bank holidays, that's £75300 gross company billing.

Take off your six weeks holiday so we're comparing like with like and you're down to £66300 gross invoice value (excluding VAT). Take off your £10k pension, and you're down to £56300 before tax.

So how are you better off? Or did you just mean that you're better off because you have a better work/life balance away from a permanent employer?

[pr1]

If you bill every day of the year apart from weekends and bank holidays, that's £75300 gross company billing.

Take off your six weeks holiday so we're comparing like with like and you're down to £66300 gross invoice value (excluding VAT). Take off your £10k pension, and you're down to £56300 before tax.

So how are you better off? Or did you just mean that you're better off because you have a better work/life balance away from a permanent employer?

£66300 turnover before tax = £44,686 after pension tax using sal/divs (Contractor Calculator - Your Expert Guide to Contracting. For UK Contractors, Freelancers, and Consultants)
£60000 salary before tax = £42,125.70 after tax (The Salary Calculator - Take-Home tax calculator)

£2.5k better off

[SlipTheJab]

£66300 turnover before tax = £44,686 after pension tax using sal/divs (Contractor Calculator - Your Expert Guide to Contracting. For UK Contractors, Freelancers, and Consultants)
£60000 salary before tax = £42,125.70 after tax (The Salary Calculator - Take-Home tax calculator)

£2.5k better off

Income shifting with the missus, both not higher rate tax payers = still getting the child benefit for the 6 little ones?

[pr1]

Income shifting with the missus, both not higher rate tax payers = still getting the child benefit for the 6 little ones?

and tax free phone bill!!

[diseasex]

dont forget the fact that you will struggle to find a contract close to your home. You might be forced to move to other area , even far away...

You could say your LTD won't have family friendly policies..

[Danglekt]

I aint getting into the maths of it all, there are various online calculators for that (and I suggest I more realistic set of calculations you should do taking into account peoples points in the is thread)

£70k salary every month, on the same day isn't to be sniffed at - contracting aint the same, you will have leave, sickness, late invoices, non payment and biggest of all the constant risk of a large stretch of bench time. It;s all managable, but to do the simple day rate to income calc is missing a massive part of this.

I assume it's £70k plus perks, in contracting there are no perks, Everything you buy comes out your companies profits. and sometimes you are bottom of the pile when it comes to working in a good environment.

Yes the calculators spit out a number but there are a range of associated costs which all take a slice, and you will need to consider the impact of the upcoming dividend tax which i dont think the calculators have caught up with just yet.

On top of the risk of bench time, there is a reasonable amount of work involved in running your company - nothing massive, but there is an evening/weekend implication there which shouldn't be ignored.

Not trying to put you off, if you hate your job then making the jump can be a good thing, but I have often found the grass is not always greener, and contracting has it's own issues which whilst different to getting stale in a company, are issues non the less.

Get a few months salary in your savings, get good advice, make informed decisions and be prepared to get used to being a quick learner (in getting used to new teams/projects/context etc) and fill your boots - but don't go off those calculators as your sole motivation.