Day Rate Conversion Calculators - How Accurate Are They ?

[eek]

The fundamental questions isn’t unanswerable. He’s asking for your opinion given that situation. If you have never ever thought about it, which if you’re a contractor I find it hard to believe that it’s not crossed your mind considering the majority of you are so clued up on your figures.

but if you genuinely haven’t ever thought about a rough comparison, and a perm base salary that would tempt you back, then fair enough, state that, you’ve never thought about it and you don’t have the capacity to figure it out right now. Don’t slate the poster for a ridiculous question just because you can’t be bothered.

and yes, base salary is only a small
part. Bonus and stocks I mentioned, the only other is pension and the employer contribution. We could mention private healthcare, cycle to work, childcare vouchers, perhaps tech scheme, all of which I have and have never used.

other than that, company provided mobile and laptop, and if you’re very lucky company provided education budget.

But, the OP asked to consider base salary only.

If you really wanted you could include those benefits in your calculation and lower your annual salary as a result. But realistically you and others just can’t be ar*ed and would rather belittle the poster than answer a genuine question that has merit.

It doesn't have merit because his figures are based on a calculator that makes assumptions that the calculator then doesn't explicitly outline.

So the starting point is wrong and overstates the plausible figure by 10-20% before you even start to look at the benefits / risks / costs.

[malvolio]

The fundamental questions isn’t unanswerable. He’s asking for your opinion given that situation. If you have never ever thought about it, which if you’re a contractor I find it hard to believe that it’s not crossed your mind considering the majority of you are so clued up on your figures.

but if you genuinely haven’t ever thought about a rough comparison, and a perm base salary that would tempt you back, then fair enough, state that, you’ve never thought about it and you don’t have the capacity to figure it out right now. Don’t slate the poster for a ridiculous question just because you can’t be bothered.

and yes, base salary is only a small
part. Bonus and stocks I mentioned, the only other is pension and the employer contribution. We could mention private healthcare, cycle to work, childcare vouchers, perhaps tech scheme, all of which I have and have never used.

other than that, company provided mobile and laptop, and if you’re very lucky company provided education budget.

But, the OP asked to consider base salary only.

If you really wanted you could include those benefits in your calculation and lower your annual salary as a result. But realistically you and others just can’t be ar*ed and would rather belittle the poster than answer a genuine question that has merit.

I've worked out the numbers in some detail, both for myself and others in the past. I'm not a permie because I don't want to be one, it's that simple.

All those unused benefits you quote are part of the equation - but then I get all of them myself, via my own company, so in that sense they can be disregarded.

There is a trite and, these days, rather inaccurate rule of thumb to get the same approximate net income, that being the only one that really matters if all you're looking at is income, and that is the old (hourly rate*1000 = annual gross salary), in the OP's case £800 a day means £100k pa. That's assuming you work 12 months a year, assuming no bonus schemes, assuming usual senior perks, not going sick, not taking holidays, yadda yadda yadda.

What you are missing is the fundamental difference between being a freelance contractor for a living and being a worker.

[hobnob]

I'm pretty sure you're trolling, but I'll take this question at face value, mainly for Rik1087's benefit.

When you look at one of these calculators, you need to get a detailed breakdown to show how they've come up with their result. The one you linked to doesn't provide that breakdown, therefore I'd ignore it.

Looking at Contractor Umbrella, their calculator has some small print about assumptions, linked to the Dolan Accountancy site:
Calculator Assumptions | Nationwide Contractor Accountants | Dolan Accountancy
In particular, that includes: "Working 40 hours per week over 52 weeks"
Are you actually going to work that many hours, or are you going to take time off (e.g. bank holidays)? I'd go with 200 days per year as a reasonable figure, but that will vary from person to person.

[Rik1087]

Thanks for your balanced response Malvalio.

Granted, the element missing from the question is the benefits you get contracting vs perm, but that is a separate question in my view and probably opening up a whole new can of worms ?

I took the OP’s question at face value of just financials.

hobnob - again, thanks for the response. Tbh, because calculators are so unreliable, and do make so many assumptions, I read between the lines of the OP’s statement and about calculators, and simply viewed it as Malvolio states 800 a day, is roughly 100k. I roughly know what 800 a day gives you monthly, and more accurately know what 100k an annum gives you monthly. I still feel the majority of contractors have a per annum figure, or monthly income that if achieved via perm would pack up the contracting malarkey. For some that maybe 120k a year or 250k a year, or for others never as the love and pure exhilaration and freedom of contracting outweighs any perm offering. ?

I think for many newbies (myself included) you do get bogged down in the financials as you’re in such a secure cocoon of permy world.

mince you’ve got a few contracts under your belt and money in the bank, you can then perhaps start to see all the other benefits that we haven’t done in our comparison (the ability to shove two fingers up at a client and take another contract elsewhere probably being priceless)!

[northernladuk]

Thanks for your balanced response Malvalio.

Granted, the element missing from the question is the benefits you get contracting vs perm, but that is a separate question in my view and probably opening up a whole new can of worms ?

I took the OP’s question at face value of just financials.
!

And that is completely the wrong thing as has been pointed out the OP numerous times. You simply cannot do it. You will have bench time for considering anything else. You can take your contract from perm but that's nice and easy. Your next gig will be the hardest to get as you've very little experience and won't be earning while looking so in 3 months or even less your financials are completely meaningless.

It's all explained in this thread.

[WTFH]

April:
https://forums.contractoruk.com/busi...ella-rate.html
January we deleted 3 of his posts in this thread for the same thing:
https://forums.contractoruk.com/busi...g-world-5.html
December 2021:
https://forums.contractoruk.com/busi...-contract.html
November 2021:
https://forums.contractoruk.com/busi...m-opinion.html

The OP trolls the professional forums every few weeks to create or derail threads to ask everyone if they agree with his latest opinion of what daily rate is equivalent to what permanent salary. He always makes assumptions, leaves out important parts of the equation, etc.
I'm not sure if this is actually part of a job he does, trying to find out what contractors think/earn, or what.

Next time he goes on about rates will be a permaban.

[rocktronAMP]

In no particular order -

Is the agency/company solvent?

Is the agency/company known for pulling tricks with their payments or contracts?

Will I have to work all those 7-8 hours?

Will I learn something new ?

If I have a dental appointment (or random other appointment) will I be able to make up the time later so I can get paid?

If I have a dental appointment (or random other appointment) and can't be bothered to make up the time how do I charge?

Will I have to work in an office?

If I have to work in an office how far will I have to commute?

etc.




Ask a silly question you get a silly answer or a thread full of them.




You have started multiple threads asking the same question instead of bumping your original thread because you don't like the answers you keep getting. Regardless of the forum you are on, the admins/moderators get fed up if you keep doing that and will ban you.

The Boris Johnson is PM of the UK and the threads about his "ways" are in General which has the subheading - "All hope abandon ye who enter here. Seriously."

Sue Ellen, I really like those rhetorical questions.

Now I need to code these attributal questions into a Google Sheet / Excel. I just don't know how at the moment? Vis-a-vis make my own contract rate to permanent salary calculator.
Thank goodness though that everyone has a different value / ethics / morality / financial metric, intrinsically. If this was not true, then we would not be able to trade goods and service, if we are not able to value to trade, then the economy would have no fundamental basis.

I always wondered about folk who buy houses next door or accept living next to extremely very busy roads. I thought the couples who lived over there, e.g. infamous Cromwell Road, Earl's Court, West London, were strong sleepers... but hey nowt queer as folk.

[WTFH]

All those unused benefits you quote are part of the equation - but then I get all of them myself, via my own company, so in that sense they can be disregarded.

Although if you're inside IR35, then there's no advantage of putting things through your own company, is there?

[malvolio]

Although if you're inside IR35, then there's no advantage of putting things through your own company, is there?

Arguably if you're inside IR35 you're not actually a freelance contractor, are you...

Yes I know ; specious argument. Bit like this whole thread.

[WTFH]

Arguably if you're inside IR35 you're not actually a freelance contractor, are you...

Yes I know ; specious argument. Bit like this whole thread.

Inside IR35 is really just a permie without any benefits (tangible, intangible, or ignored).

Outside IR35, being a freelancer, then a one size fits all calculation is irrelevant as it depends on each person's circumstances and how their Ltd is run.

It's more important for a person to know what their burn rate is, and how they would survive if their income was reduced. Again, that's not a one size calculation, because people have mortgages, loans, investments, etc, and family to consider.

Which is why the OP's posts are specious, as you rightly say.