Originally posted by l35kee
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ClientCo offers 90k to go permie. What is the equivalent day rate?
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Originally posted by l35kee View PostThis, much better off than permie even if the rate's didnt move!Comment
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Originally posted by TonyF View PostYour sums are wrong.
£90k basic will have £11k of employers NI to add on top of that, bringing it to £101k. Add on your 10 days of public holidays, your 25(?) days of paid leave, your training costs, the cost of your pension (because at that rate, you'd want a nice pension plan) and any other benefits and the headline figure of £90k is going to cost more than they are currently paying you.
Looking at what your day rate is at the moment and then trying to do a financial conversion is difficult - which of the benefits are important to you and which are ones you don't care about? Having a BUPA healthcheck as an employee perk is only worth something if you want it, itherwise it's meaningless in terms of making you comparison.
You've already said that the costs of hiring you on £90k come to £84k (I'm not sure where the rest of the figures come from), so if that's your calculation then your day rate is £725...
Thank you very much indeed. This is absolutely what I was hoping to hear. One question if I may - please could you advise how £84k comes in at £725?
(btw my 84000 is 90 salary, 3000 benefits (there are very few here), and 11000 Employer NI less a 20% deduction for corporation tax on the staffing costs)Comment
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Originally posted by TonyF View PostWhat about if you have to travel / stay over and can't pay for that out of your pre-tax income? If work is on your doorstep then it's great but if it isnt then that £800 a day in't going to go too far when you pay your travel and accomodation yourself.Comment
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Its not 550 less 20% corp tax you also have to set aside the extra money for your personal tax calculation which adds a lot more tax overall. That 20% becomes closer to 35% @ 550 a day. Just take the 90K perm & st0p be1ng a greedy g1t! its going to cost this company around £110-115K to employ you @ 90K anyway. Personally I hope they outsource the r0le t0 s0me0ne less greedyComment
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Originally posted by TonyF View PostWhat about if you have to travel / stay over and can't pay for that out of your pre-tax income? If work is on your doorstep then it's great but if it isnt then that £800 a day in't going to go too far when you pay your travel and accomodation yourself.
Also, I wish I could get £800 a day. Working for the 2 months to cover the permie salary I wouldn't have a problem with even if it meant staying over.Comment
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Originally posted by TonyF View PostWhat about if you have to travel / stay over and can't pay for that out of your pre-tax income? If work is on your doorstep then it's great but if it isnt then that £800 a day in't going to go too far when you pay your travel and accomodation yourself.
I explained that at 90k as a permie, my £800 net expenses per month before tax would be a problem and that's how we came up with the calculation idea.
Essentially, if I can go to the FD and say 'this is my costs to you at 90k basic and it's the same / more than hiring me on 550 for another year' then they'll spring for it no worries.Comment
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Originally posted by uk contractor View PostIts not 550 less 20% corp tax you also have to set aside the extra money for your personal tax calculation which adds a lot more tax overall. That 20% becomes closer to 35% @ 550 a day. Just take the 90K perm & st0p be1ng a greedy g1t! its going to cost this company around £110-115K to employ you @ 90K anyway. Personally I hope they outsource the r0le t0 s0me0ne less greedy
Firstly, I'm not greedy. I'm a director maximising profit. I could give it all to the Corbyn fan club afterwards but I've never met a contactor (or a permie) who's said 'please pay me less'
Secondly my Ct600 figure is not relevant to my ClientCo.Comment
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Originally posted by pr1 View PostComment
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