135K FTE or 710 Umbrella Rate?

[chinnaab]

just looking for opinions on going for 135K FTE (with added 15K bonus) or staying on £710 per day umbrella contract. My take home pay would be more or less the same however I am loosing on my pension contributions. I am currently maxing out my 40K pension contribution but it will be only 10% of 135K if I go FTE route. What do you think I should do. Please comment.

[ShandyDrinker]

In reality only you can decide.

However, given the current climate and the fact that contract (and permie) pay is going to come under severe downward pressure with the incoming trade deal with India and freedom of movement for workers from that continent, I'd bite their hand off for a £135k salary with £15k bonus. On the pension side, you don't mention matching contributions which I would expect any employer would do if they're paying that sort of salary.

[northernladuk]

more or less the same however I am loosing on my pension contributions.

The one where you aren't loosing on your pension contributions I guess?

[Peoplesoft bloke]

Is the 10% the Employee and Employers added together?

[chinnaab]

In reality only you can decide.

However, given the current climate and the fact that contract (and permie) pay is going to come under severe downward pressure with the incoming trade deal with India and freedom of movement for workers from that continent, I'd bite their hand off for a £135k salary with £15k bonus. On the pension side, you don't mention matching contributions which I would expect any employer would do if they're paying that sort of salary.

Thank you for your comments. Employers contribution is 10% of 135k. They match a max of 2% on employee contributions

[chinnaab]

Is the 10% the Employee and Employers added together?

Hi
10% is employer contribution alone.

[NowPermOutsideUK]

Very interesting problem to have - If 710 was outside I would have no hesitation to recommend the outside contract role

For inside I have not run the numbers - However I am hiring and today I saw someone asking for 425 per day inside or 70K outside

This would mean by simple arithmetic that 850 = 140K?...

Personally I think contracting is over - i had a good run and i would take the perm 135 on numbers only

I m not far off your perm number salary and would be curious to know what you do in what industry - I guess programme manager in finance

Just be aware that is 6.5K after tax a month - Assume your housing is 3K and thats 100 a day for everything else - Not that much sadly

[WTFH]

Very interesting problem to have - If 710 was outside I would have no hesitation to recommend the outside contract role

For inside I have not run the numbers - However I am hiring and today I saw someone asking for 425 per day inside or 70K outside

This would mean by simple arithmetic that 850 = 140K?...

Personally I think contracting is over - i had a good run and i would take the perm 135 on numbers only

I m not far off your perm number salary and would be curious to know what you do in what industry - I guess programme manager in finance

Just be aware that is 6.5K after tax a month - Assume your housing is 3K and thats 100 a day for everything else - Not that much sadly

What about if they live with their parents, have the dog as a shareholder and use more tax dodges than Sunak? Your ideas of what is equivalent is based on a series of false/dodgy assumptions. If you’d care to show your workings and taxes, that would make very interesting readings. Your “simple arithmetic” is based on dividend taxes, etc, all being linear.
Please stay out of the professional forums if you’re not a professional.

[Fraidycat]

What about if they live with their parents, have the dog as a shareholder and use more tax dodges than Sunak? Your ideas of what is equivalent is based on a series of false/dodgy assumptions. If you’d care to show your workings and taxes, that would make very interesting readings. Your “simple arithmetic” is based on dividend taxes, etc, all being linear.
Please stay out of the professional forums if you’re not a professional.

What are you talking about, tax dodges and dividends? The Tax dodges available to FTE or Umbrella are very limited.

I thought that was a pretty good post by NowPermOutsideUK

My only issue was him saying 6.5K might be a bit tight. Only in a worst case scenario. 6.5K is quite tight for a single earner trying to support a recently bought home and family. But if the partner works the household income could be over 10K a month. Or if the house was bought a decade or more ago then the numbers are not so bad either.

[northernladuk]

What are you talking about, tax dodges and dividends? The Tax dodges available to FTE or Umbrella are very limited.

I thought that was a pretty good post by NowPermOutsideUK

My only issue was him saying 6.5K might be a bit tight. Only in a worst case scenario. 6.5K is quite tight for a single earner trying to support a recently bought home and family. But if the partner works the household income could be over 10K a month. Or if the house was bought a decade or more ago then the numbers are not so bad either.

Which bit was good?
Sentence 1 was a waste of internet space
Sentence 2 & 3 are so simple it's beyond useless
Sentence 4 is utter bollocks
Sentence 5 is just a question
Sentence 6 you destroyed his argument by pointing out the obvious

Not much pretty good left to comment on.