Inside vs Perm - opinion

[malvolio]

thats the worry with all contracts, calcs can only assume full duration of work done



however the 66.8k will be taxed far greater right?
i am thinking post-tax comparison right now from a finance view, vs the benefits attached of a perm (i.e. 25 days leave in a perm role, assume half were taken for downtime in 6m role = less £4.5k gross pay)

Rule of thumb for post tax between permie and outside IR35 is roughly hourly rate x 1000 = salary, but it is only very rough.

That doesn't work for inside IR35 roles. At all. Inside, you get what you get.

And all comparisons have to be based on you working a full year - which is a very bad basis out here in the real world.

Ignore salary. Look at future employability and quality of life.

[ladymuck]

But: what are your motivations?
Are the locations similar? How long is the commute? How much travel is involved?
-assume both are hybrid in office/remote
Is £350/400 the advertised rate, or have you got an offer - if so, what is it? Equally with the perm role, are you just grabbing figures off a job website, or are these offers?
How long is the contract?
-assume 6 months for inside and assume 40k-45k for basic offer (will aim to go higher if market permits)
What perks come with the perm job? e.g. pension contribution, bonus, share options, insurance, private health, equipment/phone, etc
-currently viewing whats out there, it various so need to consider this last but not least
Ignoring all that, what answer do you want us to give you?

All assumptions rather than fact.

When you have two actual offers to compare then you can decide on their respective merits.

It seems, at this moment, your primary interest is in the cash return and you've been given that answer.

[eek]

Rule of thumb for post tax between permie and outside IR35 is roughly hourly rate x 1000 = salary, but it is only very rough.

That doesn't work for inside IR35 roles. At all. Inside, you get what you get.

And all comparisons have to be based on you working a full year - which is a very bad basis out here in the real world.

Ignore salary. Look at future employability and quality of life.

Nope inside you need to remove the employer costs from the advertised assignment rate (as the assignment rate shouldn't contain those things but it makes the advertised rate look so much better and hey what does the actual law have to do with an advert).

[northernladuk]

As has been mentioned many times. What else is there going on here? There has to be a difference in the type of work, exposure to tech, desire to learn new skills, location, career progression.

If money is the only factor then that's black and white. No opinion needed. Just have to manage the risk beyond the single contract but there has to be more at play here surely. Asking which is better, contract or perm is a non question.

[eek]

As has been mentioned many times. What else is there going on here? There has to be a difference in the type of work, exposure to tech, desire to learn new skills, location, career progression.

If money is the only factor then that's black and white. No opinion needed. Just have to manage the risk beyond the single contract but there has to be more at play here surely. Asking which is better, contract or perm is a non question.

I'm not sure.

Ignoring the money contracting may have a whole set of downsides that may not be obvious. Asking a set of contractors who all like contracting is probably not the best place to get those opinions though. Asking on linkedIn without mentioning money may give you a better set of answers.

[NowPermOutsideUK]

Excuse my ignorance but did someone provide the after tax income from both options to allow the OP to objectively assess the circumstances? I would also like to see the difference of 400 per day inside vs 40K perm after tax ... I have a feeling that 400 a day would be equal to 80K perm after tax working on 227 days per year of work.

[WTFH]

Excuse my ignorance but did someone provide the after tax income from both options to allow the OP to objectively assess the circumstances? I would also like to see the difference of 400 per day inside vs 40K perm after tax ... I have a feeling that 400 a day would be equal to 80K perm after tax working on 227 days per year of work.

No.

You are so obsessed with rates.

How much do you earn?

How much do you pay tax on?

How much do you divert into the bank account of family/friends?

[eek]

Excuse my ignorance but did someone provide the after tax income from both options to allow the OP to objectively assess the circumstances? I would also like to see the difference of 400 per day inside vs 40K perm after tax ... I have a feeling that 400 a day would be equal to 80K perm after tax working on 227 days per year of work.

Yes - in the very first reply i.e. second post.

As I'm conservative it's based on 220 days at £350 a day and the PAYE equivalent for a year comes to £66,800 (with employer NI, apprenticeship levy and a £25 umbrella fee deducted).

[NowPermOutsideUK]

No.

You are so obsessed with rates.

How much do you earn?

How much do you pay tax on?

How much do you divert into the bank account of family/friends?

Answers as follows:

How much do you earn? Not enough unfortunately - Trying to retrain as a social media influencer

How much do you pay tax on? - 100% of 0 == 0

How much do you divert into the bank account of family/friends? 0 but would love to hear from you tax saving strategies learnt from politicians in the UK of using offshore jurisdictions and trusts to better keep hold of the few pennies in my pocket!

Wishing you a wonderful Wednesday !

[redman123]

Excuse my ignorance but did someone provide the after tax income from both options to allow the OP to objectively assess the circumstances? I would also like to see the difference of 400 per day inside vs 40K perm after tax ... I have a feeling that 400 a day would be equal to 80K perm after tax working on 227 days per year of work.

40k is £30,863.96 after tax which should be compared to any contract roles on 6m.