150k perm or 1000p/d inside?

[Bobmcbob]

Haven’t posted for years but a similar question to before!

I am fortunate to have two offers in my hand from Banks. Both are at SVP level, but one is perm (with a 20% bonus), other is 1 year inside IR35 @ 1k per day, and will probably extend to perm.

im minded to go for the perm one as never done a gig inside, though the ‘contract’ option still looks more financially appealing. Thoughts?

Bob

[ladymuck]

Have you run the £1k through an umbrella pay calculator? Do you know if that's the grossed up agency (assignment) rate that includes ErNI / Apprentice Levy or is that the rate to you that is only subject to EeNI and PAYE? Have you maxed out your pension contributions or could you put the bulk of that into your pension?

What's included in the £150k package?

[malvolio]

You have to wonder why a potential SVP in finance can't work this out for themselves...

Anyway, that aside, there is no easy answer. As LM has said you need to fully understand the rate to you, but if it is £1k you are likely to end up with around £550 of it in your account. The usual tax mitigation stuff applies, of course. That's roughly £130k a year tax paid.

Given the hidden extras, and you get paid for 365 days a year, my guess is that the permie role is paying rather more, but you will need to run everything through some calculator or another (and ignore expenses, there aren't any).

But if it's going to turn perm, why not get an early start anyway... Apart from anything else, you're more likely to get an annual rise as a perm.

[GhostofTarbera]

£1000 all day long especially if going to max out your pension when inside

no brainer

[NowPermOutsideUK]

So the perm offer is 120K base plus 30K bonus? If that is correct and you had 1K a day I would still go for the 1K a day. very interesting problem to have and I would love to know your specialism to get to these figures

Needless to say if there was an option from my calcs 700 per day outside would beat 150K perm but thats my personal situation.

There are few perm benefits and you can be cut as easily as anyone else these days

[GigiBronz]

So the perm offer is 120K base plus 30K bonus? If that is correct and you had 1K a day I would still go for the 1K a day. very interesting problem to have and I would love to know your specialism to get to these figures

Needless to say if there was an option from my calcs 700 per day outside would beat 150K perm but thats my personal situation.

There are few perm benefits and you can be cut as easily as anyone else these days

There are no rights before 2y and the bonus might be partially as shares.

I'd go for the inside gig. You are a contractor, you do a day's work, you do not have to get involved with the other shenanigans of permi life.
If you get 1y inside and another year later on as permi you get the rights to severance package etc. so it should not affect future prospects if you decide to stick with them.
If it goes sour after few months, you stick it on your cv with pride.

Vote for the money, especially if you are close to retirement age and doing contributions. Permanent employment is a red herring anyway.

[BlasterBates]

So the perm offer is 120K base plus 30K bonus? If that is correct and you had 1K a day I would still go for the 1K a day. very interesting problem to have and I would love to know your specialism to get to these figures

Needless to say if there was an option from my calcs 700 per day outside would beat 150K perm but thats my personal situation.

There are few perm benefits and you can be cut as easily as anyone else these days

Bear in mind that in some of these banks 80 hours is the norm, you have to divide by 2 to get the actual hourly rate.

[Bobmcbob]

Thanks all, really useful points. The perm gig is 150 base + 20% bonus. Also + 10% employee contrib pension, so is ~195k cash/pension+ 25 days hols, medical insurance etc...

outside Its around 220k, but minus out the 10% pension it’s almost the same. With no expenses etc then not as advantageous as I thought.
Both roles will be quite political and I don’t see much actual difference, given what I do in banking, and the hours will be long regardless!!

I think I will come down to my personal preference... going to see what kind of joining bonus can factor in, and that might just sway me.

thanks,
Bob

[GigiBronz]

Bear in mind that in some of these banks 80 hours is the norm, you have to divide by 2 to get the actual hourly rate.

Forgot to mention that as well. None would pay overtime so probably you would be safer as a contractor to draw a line in the sand. Might not... depends on how they roll.

To be frank all salaries are tulip. 1k inside is about 9k net. Depends on your lifestyle, family, children but that might not get you very far in central london.

This makes a lot of sense:
https://www.youtube.com/watch?v=aac9QbtKzb8

Depends a lot on what the wife does and what commitments you have but long term I would presume it would be very dependant if you are able to climb the ladder to the next level. Otherwise you are overcommitted to the lifestyle(without realising) and it will end up in bankruptcy.

[jayn200]

Probably would lean inside personally just because you can bill for any extra days/time worked. How does it work in banking with notice period? If it's like 6 months and they won't pay you out then that's another reason to go inside. If they will just pay you out for it, then maybe it's a reason to go perm.

The reason I say that is important is I think there is a very high likelihood that you will leave in 1-2 years. Just from burn out and being former contractor.