Contracting or Perm??

[washed up contractor]

Hi All,

I am possibly taking my first step into the contracting world!

I have two job offers, one is a 10 min drive from home and a perm job @ 34k.

The contracting job would be my first one and is a 6 month contract @ 210 a day. However this is an hour drive from where I live.

I was just wondering if I could get peoples advice as I am trying to make a decision.

Thanks

Dont listen to those saying take the permie job. They are just trying to cut down the contractor competition, it doesnt bother me as Ive retired from contracting.

£210 a day isnt a big fee for a contractor compared to £34k permie and depending where you live an work in the country, what might be a low contractor income to some may be a big step up to others. Also, with a good accountant you will reduce the tax take to a minimum (legally) and you should see £210 a day as a stepping stone to increasing your rate as you continue contracting. As some have said, contracting isnt just about money, it is a lifestyle choice.

Only other thing Id say is be aware contracting means no money when you arent working. Contracts will very likely mean working away from home and if you have young kids, can be very hard to handle some times.

[MyUserName]

Dont listen to those saying take the permie job. They are just trying to cut down the contractor competition...

I'm not. I am not even a contractor any more.

[northernladuk]

Dont listen to those saying take the permie job. They are just trying to cut down the contractor competition, it doesnt bother me as Ive retired from contracting.
.

It's not really that. The OP is trying to compare apples and pears. They two are completely different and there are a host of things to consider. Unfortunately the OP hasn't touched a single one of them so they assumption is they don't have a clue. They are going to struggle with the commute as we see on here a lot and they are the bottom end of the market. We haven't a clue what they do... so the defacto safe advice to give is go perm.

210 is hardly competition for anyone and whether they can secure end to end gigs at that rate is questionable, whatever they do.

[mattfx]

But you've absolutely no idea of the guys skills and ability to get more contracts. You are basing it on one gig and the assumption it won't get canned early. No information about his personal and financial situation either. Nothing. He might be like the guy we had last month that jacked a gig two weeks in because the drive killed him.

Totally baseless advice.

The only way to find out if you have the skills to contract is to go and try it. If you haven't worked in consultancy prior to contracting (which many haven't) then really, what other option do you have? Yes you're right, there's not a whole bunch of information there and no, the OP hasn't stated his financial situation. But at a rate of £210 a day the job cannot be that highly skilled (no offence OP, just playing the odds game) and I am backing the OP to have the necessaries to carry out the work on this occasion. If it was a £300/£350 per day gig vs a £34k perm role, i'd perhaps have some greater reservations as to why there was such a big gap.

[malvolio]

I'm not. I am not even a contractor any more.

I still am, but only part time these days. Although the OP would not represent any kind of competition anyway. Nor would increasing the opposition by 0.00025% represent much of a threat either.

[MattZani]

Hi All,

I am possibly taking my first step into the contracting world!

I have two job offers, one is a 10 min drive from home and a perm job @ 34k.

The contracting job would be my first one and is a 6 month contract @ 210 a day. However this is an hour drive from where I live.

I was just wondering if I could get peoples advice as I am trying to make a decision.

Thanks

Lots of variables to think about.

1) how likely are you to find another contract at the end of the 6 months or in case you get let go early?

2) Apart from the 34k salary, what are the opportunities for you to grow in the permie role? Training/professional development...?

3) Have you ever had a 1 hour long commute or would this be your first time? Who knows...maybe 2 hours a day "wasted" travelling is going to wear you out?

4) Have you thought about the other cost of the commute? 1 hour VS 10 minute is going to cost you much more in petrol.

Since this is your first contract, I would advise against setting up your ltd. You don't know if you're going to last and if you're going to like the contracting lifestyle. I suggest you use an umbrella for your first few contracts. This also brings down your net earnings a little bit.

My advise: take the permie job, stay there for 1-2 years, improve your skills and your market value, use those 2 saved hours by doing something more useful and personally fulfilling than driving. After those 1-2 years, if you still want to try contracting, you'll be in a better position and can get a higher rate.

[Smackdown]

If you can only get £210 stick to permament. It indicates that your current skill set is not highly valued and means you will be extremely vulnerable if the number of contractors begin to outnumber the number of contracts. Contractors are always the first to be canned. You could be canned and then find yourself up against someone with 20 years experience for the next gig.

Get some more experience first.

[quackhandle]

210? Start learning how to negotiate for your second contract if you want to continue.

qh

[LondonPM1]

If you can only get £210 stick to permament. It indicates that your current skill set is not highly valued and means you will be extremely vulnerable if the number of contractors begin to outnumber the number of contracts. Contractors are always the first to be canned. You could be canned and then find yourself up against someone with 20 years experience for the next gig.

Get some more experience first.

What makes you assume that perm is safe and is a job for life? People on this board have this notion that perm is security == never be fired

This is obviously wrong. I dont think there is much more safety being perm these days

OP - What did you decide?

[Lance]

What makes you assume that perm is safe and is a job for life? People on this board have this notion that perm is security == never be fired

This is obviously wrong. I dont think there is much more safety being perm these days

OP - What did you decide?

I kinda agree. There’s no such thing as a safe job any more, but on the flip side it’s harder to get rid of permies. And the larger the company the harder even then to sack them.

In my experience contractors do the work the permies cannot, or cannot be bothered to, do. Bad contractors don’t get renewed.

So you’re right but it doesn’t reflect the fact that permies do hang around for a lot longer.