135K FTE or 710 Umbrella Rate?

[eek]

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

That makes absolutely no sense - what does 70k outside mean - outside would usually be a day rate so £400 or so.

If you mean £425 inside or a £70k salary - well £425 @230 days gives you a PAYE salary (after Employer NI and pension deductions) of about £81500 so that's probably at the point the contract makes sense.

£710 however gives you a PAYE "salary" of £137,750 under those calculations so the FTE rate is way better.

[chinnaab]

That makes absolutely no sense - what does 70k outside mean - outside would usually be a day rate so £400 or so.

If you mean £425 inside or a £70k salary - well £425 @230 days gives you a PAYE salary (after Employer NI and pension deductions) of about £81500 so that's probably at the point the contract makes sense.

£710 however gives you a PAYE "salary" of £137,750 under those calculations so the FTE rate is way better.

Dont think £710 day rate will give £137750 PAYE salary.. how did you calculate that?

[eek]

Dont think £710 day rate will give £137750 PAYE salary.. how did you calculate that?

230 days - (you lose 30 days holiday)

£710* 230= £163,300

and then I took off employee NI at 15.55%.

thag gives me £141,000 or so, so it also includes a full employer pension contribution at 3%

[rocktronAMP]

230 days - (you lose 30 days holiday)

£710* 230= £163,300

and then I took off employee NI at 15.55%.

thag gives me £141,000 or so, so it also includes a full employer pension contribution at 3%

With that £141,000 you are well above £100K of personal allowance. So the whole is fully taxed. My brain hurts, I don't remember the calculation working out.

[ConsultingTechArchitect]

I turned down 140k FTE with one of large consulting firms (big 4). For that much salary, they will want to own every aspect of your life.

I can work two outside IR35 contracts and make much more without the need to give my life to the partners/owners of the firm.

[rocktronAMP]

I turned down 140k FTE with one of large consulting firms (big 4). For that much salary, they will want to own every aspect of your life.

I can work two outside IR35 contracts and make much more without the need to give my life to the partners/owners of the firm.

Assuming you can genuinely source those *Outside* IR35 contracts; and to quote Rudyard Kipling, in his Barrack-room ballads, 1892: "Oh, East is East, and West is West, and never the twain shall meet."

[ConsultingTechArchitect]

Assuming you can genuinely source those *Outside* IR35 contracts; and to quote Rudyard Kipling, in his Barrack-room ballads, 1892: "Oh, East is East, and West is West, and never the twain shall meet."

I'm working two outside right now with another one just landing in my Linkedin inbox (I won't take a third).

There are still some around.

[NowPermOutsideUK]

That makes absolutely no sense - what does 70k outside mean - outside would usually be a day rate so £400 or so.

If you mean £425 inside or a £70k salary - well £425 @230 days gives you a PAYE salary (after Employer NI and pension deductions) of about £81500 so that's probably at the point the contract makes sense.

£710 however gives you a PAYE "salary" of £137,750 under those calculations so the FTE rate is way better.

Just to clarify it was 425 inside and a salary (nothing to do with outside) - And for completness the salary expected was 90K vs 425 inside (not 70 my mistake). Thank you eek for those figures above

[WTFH]

Just to clarify it was 425 inside and a salary (nothing to do with outside) - And for completness the salary expected was 90K vs 425 inside (not 70 my mistake). Thank you eek for those figures above

That doesn’t make them equivalent - it just makes then what someone says they would want to jump from contracting - or, as I have done many times - is a way of telling an agent, or company, that I wouldn’t want to work for them permanently. Because if your friend who told you that was being serious, they would have also mentioned the benefits package and pension they’d want.