Contract negotiation

[Wilmslow]

I know I appear indecisive (because I am), but need to choose wisely.

Client wants me for the next couple of years, but not so much as to keep paying me emergency short term contractor rates.

Looking at the tax calculators I am much better off on the same permie money as a contractor – eg £45K salary is take home £27K versus £36K as a contractor.

I was thinking – maybe the wrong thing to do, but, negotiate a LOWER daily rate than I am currently on and sign up for a year, but which would make is not a lot more for the client, but give me a much nicer pay packet a month, although less than I am currently on now?

Just exploring all options before I go permie or cling on until they get a permie dude.

[MrRobin]

Let me get this right... this client is offering you the same money you get as a contractor, but as a salary?

They are paying £45k + agency markup + VAT now
But they would be paying £45k + ER NI + Benefits etc after

Unless you agency fees are astronomical, there isn't really much of a difference in saving for the client, is there? Can you not negotiate agency fees down and say to the client you will split the difference?

[beaker]

I know I appear indecisive (because I am), but need to choose wisely.

Client wants me for the next couple of years, but not so much as to keep paying me emergency short term contractor rates.

Looking at the tax calculators I am much better off on the same permie money as a contractor – eg £45K salary is take home £27K versus £36K as a contractor.

I was thinking – maybe the wrong thing to do, but, negotiate a LOWER daily rate than I am currently on and sign up for a year, but which would make is not a lot more for the client, but give me a much nicer pay packet a month, although less than I am currently on now?

Just exploring all options before I go permie or cling on until they get a permie dude.

You really don't want to leave do you?

Remember as a contractor you don't get holiday pay, sick pay, a pension or any other benefits.

I think it's time to bite the bullet. Go perm and stay for 1-2 years (you can always resign, plenty of people do), offer to stay on your current contract rate or look for something new.

[Wilmslow]

You really don't want to leave do you?

Remember as a contractor you don't get holiday pay, sick pay, a pension or any other benefits.

I think it's time to bite the bullet. Go perm and stay for 1-2 years (you can always resign, plenty of people do), offer to stay on your current contract rate or look for something new.

Spot on - I don't want to leave. But I only want to be here for 2 years until the project coming our way is over.

I would rather stay at contract rates, but that would be pushing my luck.

I was thinking about charging lower contract rates and sign up for a year if they would entertain that - makes me better off than permie money (where the tax is a lot less effective).

I could try to stay on at current rate, but, likely to be hoofed.

[tay]

Isnt this the the 4th time you have started a thread asking if you should go permanent? I think you are just askign the same question until you get the answer you want.. so here goes.

Go permanent, its great, the company will love and appreciate you. Or even better take a pay cut until you get a permie pay rate but none of the benifits... you had better stay at this place because the contract market is big and scarey.

[beaker]

Spot on - I don't want to leave. But I only want to be here for 2 years until the project coming our way is over.

I would rather stay at contract rates, but that would be pushing my luck.

I was thinking about charging lower contract rates and sign up for a year if they would entertain that - makes me better off than permie money (where the tax is a lot less effective).

I could try to stay on at current rate, but, likely to be hoofed.

Projects get canned, managers and their restructures come and go, clients come and go, priorities change. If you go perm you will probably have 3 months probation period and 4 weeks notice anyway. IMO its naiive to think the project you start on today will be the same one you're on in 2 years time. Not many organisations have the patience for projects lasting more than 6-12 months.

I was recently offered a permanent job and the chance to manage a massive programme by my current client, but after tax I would be earning about half what I do now, despite it being a more senior role. A few weeks later the project was scaled back massively.

It sounds like you want the best of both worlds. In that case be upfront with your client - say you want to stay for this upcoming project but you only see yourself being there up to 2 years, so negotiate a 12 month or 24 month contract with a 4 week notice period and at an agreed annual rate eg £45K. Make sure it's IR35 compliant so you can maximise the tax savings.

[youwhut]

I would consider topping myself.

[SueEllen]

I would consider topping myself.

Be nice

Though the original post is like Groundhog Day

[Sausage Surprise]

Isnt this the the 4th time you have started a thread asking if you should go permanent? I think you are just askign the same question until you get the answer you want.. so here goes.

Go permanent, its great, the company will love and appreciate you. Or even better take a pay cut until you get a permie pay rate but none of the benifits... you had better stay at this place because the contract market is big and scarey.

[Sausage Surprise]

I would consider topping myself.

I'd consider helping him.