Client requests me to go permie

[ChimpMaster]

I do possess "a specific set of skills" ( ) which are particularly valuable to this client based on work I've done in the past on very, very niche technology. There's the argument that means I can command a higher salary but equally, the long-term plan is phase that stuff out so one might argue that's a great position for a contractor to charge a high rate and then leave when it's done.

Sounds so very similar to the position I was in a few years ago, when I left contracting to go permie. My very niche tech was dead everywhere in the UK except at this one client where it was part of critical system operations, so they paid a very handsome rate for my skills. I rode the contract to the shore... the work eventually dried up and the product was removed from the company. I went permie at one of their subsidiaries, in a different team and different role.

Permie pay is good but nothing like the strong rate I was on. And the tax is hugely demotivating! It's hard to see how anyone is supposed to make a good life for themselves (with a family) on salaries even as good as £100k : tax + NI deductions are almost £35k from a £100k salary

I consider myself fortunate to have had a good contracting career that allowed us to level up in life. It would have much harder, almost impossible, on PAYE. I don't have the luxury of regretting going permie, because I didn't really have any other contracting option - but I do hate it. The money is bad (relatively), the work is boring me to anxiety, the expectations are too much etc etc.

I would happily take a lower paid job if I could work in more interesting fields like AI or cloud, or product implementation.

So just throwing out my experience if it helps.

[d000hg]

You don't see why because you have a raft of information you know that we don't making your specific situation less risky. You explain some of it later and starts to make sense. Nothing in your first post indicated it was anything more than a change of payment method whilst work doesn't change really so do think that it's prudent to start with worst case scenario. When someone says contract to perm it's pretty common for it to be exactly the same on different type of contract.

If you are PM working on a few projects, the client asks you to join their PM team and carry on what you are doing then it's pretty clear you were filling a perm role all along. We could have probably pulled an outside determination apart whilst in the gig and agreeing to go perm doing the same seals it.

Yours is clearly different, you know your beans so if you think your original determination is safe then Im sure it is.

Thanks - I wasn't looking for an IR35 discussion initially or I would have said.
I was only concerned because posts read very definitively it was a big problem generally which was somewhat alarming.

[d000hg]

supposed to make a good life for themselves (with a family) on salaries even as good as £100k : tax + NI deductions are almost £35k from a £100k salary

Yes that's a bitter pill to swallow although OTOH just emphasises how fortunate we are (well for now, this time next year IR35 could be automatic for everyone for all we know!)

My personal tax is very low because I keep my Ltd company income to the higher rate threshold, and can afford to live off that, so it would be a huge difference. But especially the last couple of years that's raised it's own issues as company money is starting to build up. Huge back-dated pension contributions is one thing I looked at; ad should I go perm then I've got to look into all that side of things with the company too (I know there are lots of threads on winding up I need to go read)

[eek]

Yes that's a bitter pill to swallow although OTOH just emphasises how fortunate we are (well for now, this time next year IR35 could be automatic for everyone for all we know!)

My personal tax is very low because I keep my Ltd company income to the higher rate threshold, and can afford to live off that, so it would be a huge difference. But especially the last couple of years that's raised it's own issues as company money is starting to build up. Huge back-dated pension contributions is one thing I looked at; ad should I go perm then I've got to look into all that side of things with the company too (I know there are lots of threads on winding up I need to go read)

There’s your reason to go permie.

close the limited company, MVL the money so you extract it at 10% then salary sacrifice a significant amount of you salary into your pension pot.

[ChimpMaster]

There’s your reason to go permie.

close the limited company, MVL the money so you extract it at 10% then salary sacrifice a significant amount of you salary into your pension pot.

Exactly what I did, and it's good to an extent, but the afterlife is downer. For me anyway.