torn apart between perm/contract options

[ukblokester]

hi guys, i know i asked this question a few days back, but i am asking this again with slightly diff. parameters, i have a perm offer of 47k right now however i really want to try out contracting. considering if i cant give up full time job to try it out right now, i will find it even more hard to do it leaving a higher salaried job. my skill sets are php/frontend developement (html,css/javascript), symfony, yui/jquery etc.
based on the given condition, i have the following questions:
* should i let go the perm offer and quit my current job and look for a contract
* is the perm salary a decent one to be offered for a mid/senior level position.
* if there are contracts, what kinda rates would i expect
* also, considering a 47k salary, if i try and see this in terms of contract money, what would the day rate be? i am assuming 2800/20=140 (that's contract rate after taxes)

please help me make an informed decision as i need to get back to the company tomorrow and get on with my life, this is taking too much of my time thinking.

cheers

[DiscoStu]

hi guys, i know i asked this question a few days back, but i am asking this again with slightly diff. parameters, i have a perm offer of 47k right now however i really want to try out contracting. considering if i cant give up full time job to try it out right now, i will find it even more hard to do it leaving a higher salaried job. my skill sets are php/frontend developement (html,css/javascript), symfony, yui/jquery etc.
based on the given condition, i have the following questions:
* should i let go the perm offer and quit my current job and look for a contract
Not unless you've got a big pot of savings and are prepared to be out of work for a while, the current contract market is dead on its arse
* is the perm salary a decent one to be offered for a mid/senior level position.
Why don't you have a look on Jobserve and see for yourself
* if there are contracts, what kinda rates would i expect
Why don't you have a look on Jobserve and see for yourself
* also, considering a 47k salary, if i try and see this in terms of contract money, what would the day rate be? i am assuming 2800/20=140 (that's contract rate after taxes)
There's a guideline people often use, I forget what is, have a search of the forum.

please help me make an informed decision as i need to get back to the company tomorrow and get on with my life, this is taking too much of my time thinking.

cheers

HTH

[ukblokester]

silly question but what exactly does 'big pot of money' anything like avg months that i might go without a contract would be useful.

[jim2406]

Where do you live?

You wont earn a lot of money doing PHP contracting. It is perceived as lower skilled than say, Java or .NET, rightly or wrongly.

I would say 47k is very good for that combination of technical skills, especially if you're outside of London.

[TykeMerc]

What DiscoStu said is accurate, before dumping your current job or abandoning your better job offer you must consider some factors:-

1. New contractors rarely get the best rates
2. You need a sizable chunk of expendable savings for when you're not working
3. We're in what's likely to be the worst recession since the 1920's, as such rates are dropping fast and contracts are rare
4. There are absolutely loads of people competing for every contract advertised
5. Unless you have very niche skills and experience in a high demand sector you can seriously expect to spend months between contracts on the bench earning nothing
6. The market is even more flooded at the moment as companies are laying off permies many of which are trying for contracts through desperation, these permies are quoting low rates through lack of experience and desperation
7. Do you really understand the implications of contracting? Bank Holidays are a cost not a free day off, you get no sick leave, paid holidays, pensions, bonus or paid training. If the work dries up your contract will be terminated pronto and usually unexpectedly
8. Contractors are treated very differently from permies at a lot of places, are you fully prepared for the inequalities that you will probably encounter?

In my opinion anyone giving up a decent well paid permie gig in todays economic climate is certifiably insane or very highly driven and motivated.

A friend on my last big gig quit his permie role of 10 years, closed entry final salary pension etc to go contracting and has hit lucky with 2 back to back contracts arranged, but he's starting to get very nervous now the second one is drawing to a close.

I've been a contractor for 18 years and I have a few Plan B sidelines that earn a bit, but if I was offered a good permie gig on a decent salary tomorrow I would seriously consider it, partly for the cash and partly because I'm thoroughly bored.

[ukblokester]

thanks a ton for all your advices, it all seems fairly practical. however i also looked up that the conversion of 47k is 200/day in terms of contracting money (outside IR35). is it that hard to find a role for more than 200 a day?

as a matter of fact for all the contract roles i applied, i never got any agent get back to me yet, but i think that's possibly coz i have a 4 weeks notice period which doesnt help. really confused, because i am finding it difficult to give up and start contracting right now, when this higher salary i might find it even more difficult when my living expenses would have caught up with my salary increase.

any more suggestions please, i really need to make a call today and woudl really appreciate your suggestions.
best regards

[expat]

thanks a ton for all your advices, it all seems fairly practical. however i also looked up that the conversion of 47k is 200/day in terms of contracting money (outside IR35). is it that hard to find a role for more than 200 a day?

£200/d

10 days public holidays etc.
20 days vacation
20 days/y for estimated 1 month bench on average
0 sick time
0 days off for personal needs

total 50 days: 10 weeks not billing.
It could be worse.

Work 42 weeks @ 5 days @ £200: 42000.
Say another £1k for accountant's fees and other expenses.
£41000.

Outside IR35, I guess that's it.
Inside IR35, take off Employer's NICs: salary = £36,348.

[Drewster]

To be blunt - it doesn't sound like you are "ready" to go contracting....

and I would really really advise against jumping into the decision too quickly and without being "sure"........

That said - its your life and only you can decide... good luck

[lightng]

47k for a perm role with those skills is exceptional. Most contracts with those skill requirements won't match up on pay - just take a look on jobserve.

You need your bumps felt if you think you can do much better. Honestly.

[TykeMerc]

any more suggestions please, i really need to make a call today and woudl really appreciate your suggestions.
best regards

It would appear that the only suggestion that you want to hear is

Ignore the massive recession, you will make a fortune contracting.

Since you appear to have made up your mind that a permie role of £47k is hugely undervaluing your skills despite several experienced contractors telling you that now is the WRONG time to go contracting then go for it.

In all honesty unless you hit very lucky or are astoundingly good with niche experience you will be benched and earning NOTHING WHATSOEVER for the forseeable future.