Perm or Contract in Investment bank

[Bluebird]

Which is better from a financial perspective, future prospects

1) Perm @ 65.5K + 10% pension (Contributory pension) + bonus

in the hot area of credit derivitives.

Advantages: Training courses, perm job security etc etc
Disadvantages: Long hours and politics

2) 1 yr Contract role at 400 per day

not so hot area of Asset management

Advantages: Paid for overtime, not involved in poltics, quite easy going, think the take home pay is much much higher especially under ltd.
Disadvantages: not such a hot area of IB and may not be as good in the long term.

Which one would you guys consider and why ?

I'd go permie - if you are paid overtime you are caught IR35 by my reckoning and thesefore should be paying full paye on your £400 per day...

[pickle]

I'd go permie - if you are paid overtime you are caught IR35 by my reckoning and thesefore should be paying full paye on your £400 per day...

For the love of god, how many times. IR35 IS DEAD.

[chicane]

For the love of god, how many times. IR35 IS DEAD.

IR35 might be dead (indeed it reflects the words of my accountant). However, the government's next yet-to-be-introduced contractor robbing initiative, which they'll no doubt see fit to backdate by five years, is far from dead.

In an uncertain world, it still pays to take all necessary precautions.

[biggie]

contract is IR35 friendly it's an hourly rate

[Bluebird]

For the love of god, how many times. IR35 IS DEAD.

How so ?

[chicane]

contract is IR35 friendly it's an hourly rate

Did the friendly agent tell you this?

[ASB]

Permie:-

65.5 + 7,000 NI + 6,500 pension + 6,500 bonus (guess @10%) = 85,500

Days: = 260 - 25 holiday - 9 bank holiday - 5 sick (average) = 221

221 @ 400 = 88400

If outside IR35 you will be a bit better off. Inside it's about the same.

[pickle]

How so ?

Its an optional tax. Join the PCG, get their investigation insurance, put a few choice clauses in your contract and you are done. Check out the PCG win / loss ratio for IR35 investigations, and draw your own conclusions.

[biggie]

Did the friendly agent tell you this?

of course he did

nah I go it checked by Qdos

[Bluebird]

Its an optional tax. Join the PCG, get their investigation insurance, put a few choice clauses in your contract and you are done. Check out the PCG win / loss ratio for IR35 investigations, and draw your own conclusions.

agreed, but it doesn't mean it's actually dead.

I believe it's dying, but as has been said many times, the contract is only part of the test for IR35, and even if the win - loss ratio is so big - what happens if you're one of the un-lucky sods who loses ?

If it was dead we wouldn't have to insure against it would we ?