Perm vs contract…..another thread!

**northernladuk** · 3 November 2022, 20:43

And did you see the reams of reams of feedback in those other posts that says we just don't know. Both of those are ridiculous money so hardly worth discussing the financial differences. I am sure one of our posters will come on creaming over these numbers so if he does best just to ignore him.

I'd immediately point out that contracts are short term and perm isn't so can't compare and that you are going to face an inside gig at some point in the current climate. You've covered both these and seem confident you'll be able to get outside gigs end to end. I'd say good luck with that but it's possible you are so niche that will happen. Who knows.

Like I say in every post I think most of the things you mention aren't valid. You'll make a lot of money either way so I'd concentrate on the type of work you'll be doing. Try and list the pros and cons of the actual work. Can you learn new skills in the perm? Better home life balance if that's important to you? Kicking back if you've a young family for a few years? What about the next contract being utter crap? End to end 100% outside really? Long travel expected on some gigs and so on.

Forget the finances and look at the type of work and what you want out of it. No need to chase the money at those rates.

**NowPermOutsideUK** · 3 November 2022, 21:22

You will never get a straight answer from this forum on this most important topic - I have been trying for years!

if the contract is outside IR35 then financially the outside is better by far - I also have my doubts whether the 75 bonus will be paid - They will always make an excuse why this year is bad but next year will be great.

However as usual I would be delighted to hear from others which offer is financially better

OP clearly says "Conundrum - stick with perm and roll the dice for a bigger more secure payday? Or take the contract money and get paid my worth now?" => Interested only in money

**surfstar** · 3 November 2022, 21:24

Originally posted by northernladuk View Post

And did you see the reams of reams of feedback in those other posts that says we just don't know. Both of those are ridiculous money so hardly worth discussing the financial differences. I am sure one of our posters will come on creaming over these numbers so if he does best just to ignore him.

I'd immediately point out that contracts are short term and perm isn't so can't compare and that you are going to face an inside gig at some point in the current climate. You've covered both these and seem confident you'll be able to get outside gigs end to end. I'd say good luck with that but it's possible you are so niche that will happen. Who knows.

Like I say in every post I think most of the things you mention aren't valid. You'll make a lot of money either way so I'd concentrate on the type of work you'll be doing. Try and list the pros and cons of the actual work. Can you learn new skills in the perm? Better home life balance if that's important to you? Kicking back if you've a young family for a few years? What about the next contract being utter crap? End to end 100% outside really? Long travel expected on some gigs and so on.

Forget the finances and look at the type of work and what you want out of it. No need to chase the money at those rates.

Thanks for posting and I appreciate you giving an opinion. My mind is in the perm camp but the fomo of the immediate big money gains of contracting had me conflicted. Cheers

**surfstar** · 3 November 2022, 21:28

Originally posted by NowPermOutsideUK View Post

You will never get a straight answer from this forum on this most important topic - I have been trying for years!

if the contract is outside IR35 then financially the outside is better by far - I also have my doubts whether the 75 bonus will be paid - They will always make an excuse why this year is bad but next year will be great.

However as usual I would be delighted to hear from others which offer is financially better

OP clearly says "Conundrum - stick with perm and roll the dice for a bigger more secure payday? Or take the contract money and get paid my worth now?" => Interested only in money

Thanks for the response. Money has always been a driving factor of why I work, both offer a similar work/life balance so that’s kind of baked in.

**NowPermOutsideUK** · 3 November 2022, 21:33

Its the same with me that money is most important - But responses from here always talk about everything other than money

1) it is false that perm is more secure than contract
2) it is false that 100K in london is ridiculous salary - 5K a month after tax goes quickly
3) dont believe what the hiring managers tell you at interview - projects change and people come and go - The money does not

I wish you luck in getting an answer to this question because it is most important

**eek** · 3 November 2022, 21:39

Originally posted by NowPermOutsideUK View Post

You will never get a straight answer from this forum on this most important topic - I have been trying for years!

Because

1) it’s not an important question
2) it’s an impossible to answer question

**northernladuk** · 3 November 2022, 22:10

Originally posted by northernladuk View Post

I am sure one of our posters will come on creaming over these numbers so if he does best just to ignore him.

And as if by magic...

Originally posted by NowPermOutsideUK View Post

However as usual I would be delighted to hear from others which offer is financially better

**northernladuk** · 3 November 2022, 22:16

Originally posted by surfstar View Post

Thanks for posting and I appreciate you giving an opinion. My mind is in the perm camp but the fomo of the immediate big money gains of contracting had me conflicted. Cheers

Yep. It always is when people come on and word the question exactly as you do. We can see that and IMO it's just not a good decision point. There are other factors at play here. You are in the top 1% of the country at those figures so you have the luxury to look at some of the other factors. Don't let greed get in the way of making a good rounded decision.

On thing that might help if the FOMO is clouding your judgement. A perm contract is not for life. You can take it for 6 months and if it doesn't work you move on. Maybe stick the year to see what the bonus is and then you'll have a clear cut decision. You like it and stay or you don't and leave. You might have taken a little hit on the income but you gave it a shot, it didn't work so you have your answer and you can get back to contracting. It's not the end of the world. Just treat it like a gig with a slightly reduced rate. We all get them. Not every gig is the top end of the market rate, well mine aren't, so for 6 months, maybe a year you've effectively taken an average gig but gained the experience and if it's not for you then you leave.

**WTFH** · 3 November 2022, 22:53

Originally posted by eek View Post

Because

1) it’s not an important question
2) it’s an impossible to answer question

This. 100% this.
If money is the most important thing in your life, in my opinion you need to re-evaluate your priorities. No point being the richest loner in the graveyard.
And the impossibility of the question is because we don’t know the details of personal circumstances (amongst other things). If you have other sources of income, if you have a Ltd co with more than 1 director, if your pension is maxed out, if you have tax saving structures, if you like to go on holiday and leave work behind, if you don’t need to take more than the minimum out of your company cause you live with your parents and they pay most/all the bills… so many things make the question impossible to answer.

If the question was easy to answer, then there would be no need for accountants, you could go onto a government website and put in an hourly rate and get the exact equivalent annual salary.

Perm vs contract…..another thread!