Offered a Contract, is it worth considering?

[northernladuk]

Bad time to go contracting, good salary. If you're bored at work, get a new hobby outside work.

+1

[weboor]

Thanks for the replies, appreciate it. I knew this was the right place to post. The last time I used it was 2012 or something...

I have not yet seen any contract, so difficult to say in or out. Will do some reading on what defines IN and OUT before I can confirm. One contract will be with a service provider going from customer to customer. The other will be with a single place of work at an existing customer.

[northernladuk]

Thanks for the replies, appreciate it. I knew this was the right place to post. The last time I used it was 2012 or something...

I have not yet seen any contract, so difficult to say in or out. Will do some reading on what defines IN and OUT before I can confirm. One contract will be with a service provider going from customer to customer. The other will be with a single place of work at an existing customer.

Not sure you've read most of the replies above properly.

[simes]

This doesn't sound like a good deal.

I think your calculation of coming off 2k better is wrong. If you umbrella (inside ir35) that amount, you'd be getting paid probably less given that the Employers NI is £15k on a £120,000 salary, and 220 (average working days) at £600 is 132000 and obviously less than £135,000 permy overall cost.

If you are outside ir35, you may keep marginally more, but you'll be replacing it with zero benefits, you'll have expenses such as insurance and accountants, you will have downtime between contracts. It's not a good jump, and now isn't a great time.

I'd be aiming for £800, given you're doing something that pays £120k as a perm, I assume there's a better market than what you're currently seeing. I'd wait until the new year, or more than likely after the IR35 doom comes.

Where did I mention coming off better? £2k or otherwise?

My surmising was PAYE vs Inside / umbrella. £120k vs £132k, after NI and tax, is going to be around £10k difference. But, I wasn't offering fully calculated figures because;

1. I used the ~
2. We don't know the specifics as to Inside or Outside so, at this stage, wasn't worth getting in to.

[PermieToContractorAndBack]

Thanks for the replies, appreciate it. I knew this was the right place to post. The last time I used it was 2012 or something...

I have not yet seen any contract, so difficult to say in or out. Will do some reading on what defines IN and OUT before I can confirm. One contract will be with a service provider going from customer to customer. The other will be with a single place of work at an existing customer.

stick with the £120K. Service provider can end up an absolute disaster if they treat you badly, which they often do. Regardless, I think you should have a very good reason to change.

[jmo21]

I have not yet seen any contract, so difficult to say in or out. Will do some reading on what defines IN and OUT before I can confirm.

You do not get to decide. And if they decide you are inside, then you are inside.

Stay perm for now. In 6 months to a year, maybe things will get a bit better on the IR35 (changes cancelled, clients decide to not completely stop using LtdCoContractors, rates rise significantly - we can all have some hope!!?)

[Old Greg]

600 of is a good rate. 120k p.a. is a great salary.

[darsa]

As most people say stick with the 120k, it's a no-brainer. You'd be very crazy to dip your toes in the contracting market right now, you have an amazing salary and I wouldn't reconsider unless you were being offered much more (800 range). Always account for the extra benefits and the security a permanent job gives you (so never do an 'equal' comparison, add a good 15-20% margin)

[Manic]

+1 on sticking with the permie job @120k.

[fiisch]

My rate is 5-600 per day.

I'd bite someone's nadgers off for £80k PAYE.

The rate you are considering is an effective paycut once all factors taken into consideration.