Take a 45% cut post tax for a perm job to just about pay off the bills or wait?

[TheDogsNads]

If anyone is considering a break after finishing a contract recently and is wondering what the market is like, well it's bad. Really bad. Having been on the bench late last year, then started a new gig briefly to then be diagnosed with a serious illness that laid me off work from March to June (yes just before COVID lockdown hit), my options have pretty much dwindled.

Living off the warchest, I thought I would bounce back within a month with a shiny new contract but nope. With less than 2 months buffer I have been furiously applying for perm jobs and even temporary jobs, as the market is just that tulip for contracting. Didn't ever think this would be how I'd be looking for work but it's with the prospect of losing the roof over my head it had to be done. So two interviews lined up for perm jobs next week, 45% less money than my usual day rate after tax etc. , with small, public sector organisation, completely different to the blue chip companies I've worked for over the last 10 years. Junior salary really.

Hate the thought of taking either one because of the possible message it sends to potential recruiters in the future and my skillset? Basically going backwards job wise and moneywise and think I've damaged my ability to earn my worth again. Would you do it or hold out to the bitter end?

This will also mean folding the company as after tax and VAT payments it's not worth keeping it running. With IR35 looming next March, I think my contracting days could sadly be over!

Needs must, Im afraid. Never be too proud to turn down income. What a lot of people dont take into consideration is, the longer you are on the bench, the harder it can be to get off it.

Yes, some people get 'lucky' or buck the trend and walk into a job. If you're not careful, you can become like a gambler chasing their next big win that doesnt come up. Remember 55% of something is better than 100% of nothing.

Good luck.

[BlasterBates]

If you aren't earning anything then a perm job is "infinitely" better.

You don't put rates on your projects when you apply for a contract and if you jump from perm to contract the perm salary is irrelevant. It is expected that you double your income. Why else would you go contracting.

[GigiBronz]

Take it but be careful with the team and working environment.

Last thing you would need now is a backstabbing snake-pit where you cannot leave because you have financial commitments.

[Katalyst]

I took a job six months ago at a salary I used to get over 20 years ago. But it was enough to keep me from depleting my war chest. I told them early on that I would leave within 6 months and they were fine with that. But now, as the 6 months are coming up, the company seems to have liked me enough to find me another position inside with pay more in line with what I expect and in a position I prefer. No saying this is commonplace, but it dis accomplish to things for me that I wouldn't have had otherwise. It kept me from spending 30-50K of my reserves, and as a bonus, I got a decent offer out of it.

[rashm2k]

Northernladuk has it bang on, 6 month warchest minimum, 12 ideally, even then I'd go further and have 24 months of warchest.

What about multiple revenue streams? Maybe a rental or 2? Stocks/shares etc?

WTF were you doing when times were good? Should have been investing and saving.

And what about controlling spending? Having a very tight control of spending is crucial especially for anyone running their own business, if you can't get your own finances in order then how can you manage your businesses?

Harsh words but sometimes need to be said, nothing personal against you, everyone should be doing the same.

Personally I could probably survive on around £500 per month (that's down to the damn bone - no mortgage) realistically probably 1k, I have very little outgoings in terms of subscription services, only absolutely essential (Netflix, prime sky etc is not essential only broadband and sim only is essential). And with my multiple revenue streams I don't ever need to take a penny out of the company, hopefully I'll add more revenue streams in this recession so I never need to take any money out of the company. Don't get me wrong I'm not saying be a scrooge, but having a tight control of finances should be second nature to a contractor. Always look at the total cost of ownership of everything is my philosophy.

All contractors should be preparing for the bad times. Don't forget you're the lucky one that has found something there are plenty that will not have found anything, hope this is a lesson and it's never repeated

[GhostofTarbera]

Scrooge mcduck lives !!


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[Lance]

Not sure why think taking less money should impact future earning potential.
If you move from perm job to perm job then it might as the P45 stops you from lying. But if moving from contract to perm, or vice versa, the previous money is immaterial.

[KentDogWalker]

When you guys talk about warchest to talk about savings or money in your business account

[TheScheduler]

Why will it harm your skillset?

How will recruiters know that it was a permanent job?

References?

[jayn200]

References?

For a contract job? Probably less than 25% will ask for a reference.