Urgent: Do I Leave Perm 4 Immediate Contract!?

[NorthWestPerm2Contr]

Explain how this one works to me? You can't afford to be out of work from permie to contractor land but you believe you can survive between contracts. What happens if this gap is for 6 months after you first 3 month contract. How do you stand financially then?

Idiot.

its quite simple really:

I am willing to risk it after the 3 month contract expires because I am reasonably confident I would be able to find one within another 3 months and have other things I can do in between contracts to slightly extend that period. On the other hand I am still confident I could find a contract within 3 months of leaving my permie role but simply can't afford it. Added to that is the idea that once I find my first contract it should be easier to find subsequent contracts (this is what I have read on here and been told by contractors I know so you don't go and slam me for it!).

[thunderlizard]

What they all said, but consider - how much do you know about IR35, Opting out, MOO, RoS, accountancy, VAT, FRS.... ?

That is all very well but they are non-core things. We love to talk about them on here, but even if you balls them all up completely for the first few months you'll probably still be only 30% down max. Selling yourself, and keeping yourself popular with clients, are worth far more.

[malvolio]

That is all very well but they are non-core things. We love to talk about them on here, but even if you balls them all up completely for the first few months you'll probably still be only 30% down max. Selling yourself, and keeping yourself popular with clients, are worth far more.

They are not non-core, they are part of the professional landscape of being a contractor. That aside, if the OP has never heard of them, even in passing, he hasn't done his research and so would be vulnerable to all kinds of "problems".

Agreed that business comes first, but there is enough information out there to make the transition painless - provided you know you should know it and have the wit to do something about it.

[northernladuk]

I am reasonably confident

Based on what?????

Also have you checked your sums? Three months contract, three months on the bench= How much?. How does that compare to 6 months premie?

I think you love the posts that say 'I have end to end contracts' but seem to somehow forget the ones that mention 12 months on the bench. Such a selective memory won't help you one iota.

I think I have been trolled so might go have a coffee and sulk for a bit.

[thunderlizard]

They may have become part of the professional landscape of being a contractor, but they don't pay the bills. If his first contract is inside IR35, and he doesn't register for VAT until 9 months in, how much of a problem is that really in the grand scheme of things?

[NorthWestPerm2Contr]

Based on what?????

Also have you checked your sums? Three months contract, three months on the bench= How much?. How does that compare to 6 months premie?

I think you love the posts that say 'I have end to end contracts' but seem to somehow forget the ones that mention 12 months on the bench. Such a selective memory won't help you one iota.

I think I have been trolled so might go have a coffee and sulk for a bit.

Yes indeed I have done my sums. Considering that the contract rates (in my area of work) are 3 times the perm rates I could have done a straight division had I not done my sums. Let's say perm salary = 90/day and contract rate = 270/day, after holidays, sick, bank holidays, extra commute cost (+ B&B if needed) etc etc you come to the equivalent of £180/day which is aprox twice my perm salary. So I could cope on it for at least another 3 months (more if I can claim most back in expenses etc).

Naturally you are taking a risk going into contracting, that's a given, but every person has different circumstances and is willing to give in at a certain point in terms of risk. I am willing to risk it after I have my first gig but not to leave my job and then risk it. If I was single and with no commitments I wouldn't even hessitate about quitting my current job, id be out faster than you can reply to my posts

[DiscoStu]

Yes indeed I have done my sums. Considering that the contract rates (in my area of work) are 3 times the perm rates I could have done a straight division had I not done my sums. Let's say perm salary = 90/day and contract rate = 270/day, after holidays, sick, bank holidays, extra commute cost (+ B&B if needed) etc etc you come to the equivalent of £180/day which is aprox twice my perm salary. So I could cope on it for at least another 3 months (more if I can claim most back in expenses etc).

Naturally you are taking a risk going into contracting, that's a given, but every person has different circumstances and is willing to give in at a certain point in terms of risk. I am willing to risk it after I have my first gig but not to leave my job and then risk it. If I was single and with no commitments I wouldn't even hessitate about quitting my current job, id be out faster than you can reply to my posts

Well as you're clearly so confident, why don't you quit then?

[NorthWestPerm2Contr]

Well as you're clearly so confident, why don't you quit then?

Because it may mean leaving on bad terms with my existing employers and I am not sure how much damage that would do to me.

[malvolio]

Assuming £90 a day perm is right, you're on £32850 a year. In contract terms, just to stand still, that's £33 an hour or £270 a day-ish assuming you work 48 weeks a year (hint: you won't). So your projected net income from your prospective three times perm contract rate will be about the same. In other words, you aren't getting any more income (and don't say "expenses", you have to pay them out first so they don't gain anything) so you won't be saving huge amounts.

Haven't really worked this through, have you...

[NorthWestPerm2Contr]

1) how is £90/day = £32850?

since when?

2) How would £270/day be equivalent to that?

explain

Are you sure it isn't you who has got their sums wrong?