Flippity-Flop: Weighing up a Return to Contracting

[eek]

£700 a day is £14000 before vat or £16,800 with vat.

that’s not close to £20,000..

[NowPermOutsideUK]

Some months had 23 days work days and please round up - You get the argument in general surely

[northernladuk]

The problem which I have and I am sure a lot of ex contractors have is that the take home pay on perm salary even on 120K plus is awful - I am talking about 5K a month after doing some salary sacrifice which is not much once you got used to seeing 20K as a contractor come into the bank account and being able to buy property / take director loans.

5K a month when you have a 3k mortgage is simply hand to mouth bread money so I always dream of going back to 700 a day as a contractor and having nearly 20k a month clearing the bank account and being able to use that money for cashflow whilst VAT was not due. Quite apart from the LTD tax advantages where lunch and everything was bookable against the company

Give it a rest will you.

[jamesbrown]

Give it a rest will you.

LPM1 isn't going to give it a rest until the banhammer smacks them in the nozzle.

[WTFH]

He doesn’t have a £3k mortgage on his only home.
He doesn’t contract or understand how contractors work.
He relies on moving country to evade/avoid taxes.
He just likes to derail every thread.

[NowPermOutsideUK]

<Mod snip>AI used to generate BS

[TheDude]

Me neither but you have to be prepared for it, particularly if you are in the finance sector.

I am on my second inside contract and it is fine.

Then again I am one of those people who look at a payslip and am happy about what I net. Too many people look at their payslip and worry about what the government takes.

[TheDude]

The problem which I have and I am sure a lot of ex contractors have is that the take home pay on perm salary even on 120K plus is awful - I am talking about 5K a month after doing some salary sacrifice which is not much once you got used to seeing 20K as a contractor come into the bank account and being able to buy property / take director loans.

5K a month when you have a 3k mortgage is simply hand to mouth bread money so I always dream of going back to 700 a day as a contractor and having nearly 20k a month clearing the bank account and being able to use that money for cashflow whilst VAT was not due. Quite apart from the LTD tax advantages where lunch and everything was bookable against the company

Maybe it should be a wake up call that you have/had a 3K a month mortgage not because you are fantastically skilled, clever or indispensable but that you were able to bend the tax laws to your advantage.

[TheDude]

£700 a day is £14000 before vat or £16,800 with vat.

that’s not close to £20,000..

If you are spending your VAT then you are probably from the Robert Maxwell school of business management and can believe any numbers you want.

[northernladuk]

I am on my second inside contract and it is fine.

Then again I am one of those people who look at a payslip and am happy about what I net. Too many people look at their payslip and worry about what the government takes.

Yep I was the same when I was inside. Was the most relaxed I've ever been about money to be fair. Point was if the OP is leaving a well paid role for better paid outside gigs he's going to have a nasty shock. Need to do his sums on inside gigs to be safe.