Inside IR35 v salary comparison.

[TheDude]

I am currently working an inside IR35 contract but a previous client has offered an interesting permie role that would enable me to gain some new technical skills but comes with more responsibilities than my current role.

The perm salary plus pension I have been offered actually exceeds the outside IR35 rate I was on with the client but this total is about £30k short of my current inside IR35 gross (There is a £20k ish bonus in the permie role but obviously this is not guaranteed)

In my mind being inside IR35 makes it much easier to compare contract and permie roles but I am undecided if I should stick with the money or go for the security of a perm role seeing as we are going through some very uncertain times at present.

I would appreciate any thoughts.

[GhostofTarbera]

You have factored in 35 days holiday into your calc + all permie benefits (death in service , private health etc) ?

[TheDude]

I have based contracting gross on 220 working days per year - unsure of the cash value of benefits package.

I'm feeling like I should take the permie role but am concerned they have front loaded the offer and pay rises will be limited.

Another way of looking at it is that I could make £40k worth of pension contributions in my current role and still be taxed on a the same amount as the permie base salary.

[malvolio]

Ignore the money - that is merely a short term comfort factor at the level you're talking about. Look longer term - does the new role offer better prospects than contracting, where it can be difficult to move out of a skill set if work moves on around you. Counter that with all the non-productive nonsense that permies have to endure that contractors usually cheerfully ignore.

And those benefits may not look impressive but they can add quite a lot to your overall income when you look at all the stuff you have to do for yourself as a contractor.

[northernladuk]

This has been asked a million times and there is no straight answer as the two are not the same. You can't make a choice on just the money as the Inside IR35 gig could end before you even rock up to the client and you can do nothing about it for a start.

If you do still want to follow the money try searching the forums for any of the questions already asked that will go in to the detail. You'll get many comments saying they aren't the same etc though. Type the following in to Google and mess with the keywords a bit.

inside IR35 vs salary site:contractoruk.com/forums

[Lance]

This has been asked a million times and there is no straight answer as the two are not the same. You can't make a choice on just the money as the Inside IR35 gig could end before you even rock up to the client and you can do nothing about it for a start.

If you do still want to follow the money try searching the forums for any of the questions already asked that will go in to the detail. You'll get many comments saying they aren't the same etc though. Type the following in to Google and mess with the keywords a bit.

inside IR35 vs salary site:contractoruk.com/forums

site:forums.contractoruk.com works better I think....

[Fraidycat]

I would appreciate any thoughts.

If the compensation is approximately equal, i would go for the role that is likely to more enjoyable.

If you cant make up your mind, because everything on balance is pretty close, just stay where you are, better the devil you know.

The exception is if the perm job offer is so good it is unlikely to ever come up again, which is unlikely.

[LondonManc]

If all the roles offer enough money (e.g. you must take home, say, £4k per month after tax to be happy), then beyond that, think of more than money. Think of challenge, satisfaction, progression, where you want to be in five years (still contracting, chilling in the same permie job, aiming for the boardroom, etc.) As others have said, the financial side is secondary if they're all decent payers.