625 a day outside ir35 or 110k a yr perm

[ladymuck]

Lots of people here advocating for perm, puzzling.

Current events require more flexible thinking and sometimes perm is the right way to go. I don't think anyone is truly advocating it but rather highlighting that it is a viable option, depending on an individual's circumstances.

It's not always about the financials, as you allude to, with both there is a wider package to consider.

[vwdan]

Remember who you’re dealing with here.
He’s not interested in anything you’ve stated above, but firmly believes that through various tax dodges (company cars for family members, running a business through his parent’s house, paying them rent and paying them as employees, putting 40% of rate into a pension, with free accommodation, etc). It’s also worth factoring in free equipment/phone/training - all of which a contractor can do as tax write-offs, but it still comes out of the company funds.
One correction I would make - you mention “employee” pension contribution - surely you mean “employer” - which can be >10% of the gross salary.

Whoops, good spot - yep, I meant employer contribution. One of the companies I'm chatting to does something ridiculous like 8 or 9% contribution with zero employee contribution - so straight away, that's an extra £8k+ to consider

[cannon999]

625/day blows 110k permie salary out of the water. When I was on a rate close to that I calculated that I needed a salary of at least 170k to match it.

[northernladuk]

625/day blows 110k permie salary out of the water. When I was on a rate close to that I calculated that I needed a salary of at least 170k to match it.

Correct but a contract is not likely to last the year and then there is bench time and the next gig which is likely to be inside etc etc. You can't compare the two as simplistically as this.

[d000hg]

Hello

Been made a perm offer (interesting role, fully remote etc) of 115k a yr which means pension, holidays, health care etc on top vs carrying on as a contractor on 625 a day (outside ir35) - in these choppy waters (NI + dividend whammy not long ago plus more to come), what would you do?

Is money the only thing that matters to you? If not I don't really see what advice we can offer since we aren't you, don't know your situation or preferences, etc.

I will say that a well-paid, fully remote perm-based job is in many ways something I'd jump at personally. Day to day I could still retain a lot of freedom assuming they're a decent company, without the faff of accountants, the uncertainty around searching for gigs, and the potential stress over IR35 and potential future tax crack-downs.
On the other hand, I don't really like doing the same thing for a long time so it would have to be a job where that's not the case.
Commuting is one the reasons I got into contracting in the first place.

[Inception]

It's not just the money (although I wouldn't turn up my nose at it!). Just seems to be too good an opportunity to just turn down. Considering I live up north and am a lowly dev this is London money with no commute and way above what I would be able to get if not for this crazy Job market we seem to be in. Going to keep the Ltd open and give it 6 months. If it pans out all well and good if not then its back to contracting.

[ladymuck]

It's not just the money (although I wouldn't turn up my nose at it!). Just seems to be too good an opportunity to just turn down. Considering I live up north and am a lowly dev this is London money with no commute and way above what I would be able to get if not for this crazy Job market we seem to be in. Going to keep the Ltd open and give it 6 months. If it pans out all well and good if not then its back to contracting.

I think that's a reasonable approach.

Just keep an eye on LtdCo drawings to make sure you don't end up paying a lot more tax than you may have planned for. I'd go so far as to suggest repaying anything not taken as salary or expenses if you can and stop paying yourself a salary (you can submit nil returns to indicate nothing paid).