Contractor or Perm?

[stek]

Outside IR35.

Inside, without question..

[SueEllen]

One of us can't add up, even working 48 weeks It doesn't make 25k

Note I said "equivalent".

Equivalent is not just about the money in your pocket it's the other things like pension contributions, training, sick pay, holiday pay, employers NI and other things that you don't get as a contractor.

As NLUK and Stek pointed out if you have a choice of taking the job as a permanent position then you are inside IR35. So find an umbrella calculator, I think Contractor Umbrella has one on their site, and see how much you will take home.

In your £250 per day you have to pay umbrella fees, training, employers NI, pension contributions, sick pay, holiday pay and training. Plus you won't get bonuses and things like cheap gym membership and company car plus the random other employee discounts you can get. They can also stick you in a position where you have no chance to improve your skills.

Also if the job is only short term and you take it as a permanent role they should pay you off when they want to make you redundant.

[Oakleaf]

Note I said "equivalent".

Equivalent is not just about the money in your pocket it's the other things like pension contributions, training, sick pay, holiday pay, employers NI and other things that you don't get as a contractor.

As NLUK and Stek pointed out if you have a choice of taking the job as a permanent position then you are inside IR35. So find an umbrella calculator, I think Contractor Umbrella has one on their site, and see how much you will take home.

In your £250 per day you have to pay umbrella fees, training, employers NI, pension contributions, sick pay, holiday pay and training. Plus you won't get bonuses and things like cheap gym membership and company car plus the random other employee discounts you can get. They can also stick you in a position where you have no chance to improve your skills.

Also if the job is only short term and you take it as a permanent role they should pay you off when they want to make you redundant.

Thank you Sue.
It helps a lot.

[SueEllen]

Thank you Sue.
It helps a lot.

There is a rough calculation of contract rate x 1000 to work out what salary the employer should be paying. Obviously in some cases this isn't true due to other factors, but someone offered a 50K perm salary shouldn't be on a contract rate of £280 a day.

[dmo]

Calculator...

Out of curiosity what online calculator did you use? I've been informed by my accountant that even calculators offered by some of the biggest accountants in the contracting space are just pure wrong and out of date - have been struggling to find a reliable one myself...

[northernladuk]

And you probably won't. It's so complex I doubt any of them, however uptodate will give a figure that truly reflects your situation. Much of it is dependant on where you gig is, chances of end yo end, expenses and so on.

[SueEllen]

And you probably won't. It's so complex I doubt any of them, however uptodate will give a figure that truly reflects your situation. Much of it is dependant on where you gig is, chances of end yo end, expenses and so on.

WHS

There is no calculator that will accurately explain your situation. All calculators will give the maximum you can take home if your expenses were a particular figure.

In reality the amount you will extract from your company depends on your contract rate, company expenses, minimal living expenses, where you want to save your warchest, and whether you have a partner who is co-director/company secretary or what they earn plus where the higher rate tax band is.

[Oakleaf]

Out of curiosity what online calculator did you use? I've been informed by my accountant that even calculators offered by some of the biggest accountants in the contracting space are just pure wrong and out of date - have been struggling to find a reliable one myself...

Hi,
This website has got one. Didn't you see it? But don't know how accurate it is?

[Oakleaf]

I think I will/should go for perm.

[dmo]

Hi,
This website has got one. Didn't you see it? But don't know how accurate it is?

Was more curious to know which you used. I assume you therefore used the CUK calculator