Contractor to perm - how much money to expect (part timer)

[GhostofTarbera]

60k VS 38k in govt....

At these salaries, why would anyone ever want to work in govt?

Because they are tulipe and can’t get job in private sector


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[PCTNN]

Day rates for my role were 450-650, perm roles tend to be 60-110k, typically below 80. Or 38 in govt which seems to be top of non management band.

60k VS 38k in govt....

At these salaries, why would anyone ever want to work in govt?

[smatty]

Day rates for my role were 450-650, perm roles tend to be 60-110k, typically below 80. Or 38 in govt which seems to be top of non management band.

Depends on other things though, I've a young family now so would go low if the role is flexible.

[JoJoGabor]

Wait a minute, are you saying that moving from £550 per day to £115k per year with all the other permie benefits is going to involve belt tightening? If so, I'm fooked when I take my dream £80k job.

Yup! My wife is a 49% shareholder in my company and has no other income so on outside gigs I can use her tax allowances. With a perm role I cant do that, pay more tax, cant claim expenses and lose our Child benefit (as I will earn over £50k), so we will be at least £!500 a month worse off!!!

[CryingSheep]

Unless I have missed the obvious, I don't think he was talking about where the determination lies.

Just that there Would be some people holding out to operate only through their Ltd Cos, determinations of course pending.

And probably majority of the people left working with ltds the client will be too small to make determination and in that case I believe liability on (wrong) determination is still on the ltd.

[simes]

"there will still be a small percentage of Contractors out there running through Ltds however I fear they will be heavily targeted by HMRC." This statement is entirely incorrect.

The engager / client holds the responsibility for IR35 determination, not you and your Ltd.

Unless I have missed the obvious, I don't think he was talking about where the determination lies.

Just that there Would be some people holding out to operate only through their Ltd Cos, determinations of course pending.

[CryingSheep]

True that. When I was working in banking, in more than one organisation the salary increase for promotions were capped at 10%

Job hopping has always been really high for this reason. Permie staff would move around more frequently than contractors

Exactly! On my permie times all the big jumps in salary were accomplished by moving to another employer.

[hairymouse]

Im on £550 a day, and was offered just over £80k on a permie basis in the same role. I didnt want to do the same role due to the IR35 risk so went into the consulting side of the business. Got a package of £115k OTE - it all depends who you impress and know to get the gigs (sorry I mean career) that pay the most

Even with this it still a significant drop in take home which means tightening our belts (first world problems)

Wait a minute, are you saying that moving from £550 per day to £115k per year with all the other permie benefits is going to involve belt tightening? If so, I'm fooked when I take my dream £80k job.

[PCTNN]

in the permie world very often they offer worse salary for a current employee that goes for a promotion than to an external candidate applying for the same role!

True that. When I was working in banking, in more than one organisation the salary increase for promotions were capped at 10%

Job hopping has always been really high for this reason. Permie staff would move around more frequently than contractors

[CryingSheep]

Also beware that you are obviously valued by your current client because they know you and that's why what they are offering is on the high side of the market. Once your CV is simply another unknown in a giant stack of CVs, those numbers are going to come crashing down pretty quick.

That's not always true... in the permie world very often they offer worse salary for a current employee that goes for a promotion than to an external candidate applying for the same role! But I get your point and agree that that should be the case, but usually it isn't and that always made me a bit confused.