Returning to perm is almost impossible

[contractor79]

Returnig to perm job after a contracting gravy train is almost impossible, especially if you need to work more than an hour away from home.

You incurr travel and accomodation expenses, PAYE + NI on all your earnings and no tax reduction for your expenses, and they pay you less.

what a joke!

[NotAllThere]

Nonsense. After the crash in 2000, I got a permie job as development manager, which entailed around 3 hours on the road, per day, due to the M25. The key word there is "manager". Company car, free fuel, own hours, working from home.

My overall tax rate was pretty high. But I could take the car abroad and claim expenses for fuel overseas.

I moved on from that to Head of Development of a Swiss multinational. Then things got political. I got a very large payoff (when my boss and his boss (dumb and dumber)) tried to stitch me up and I had the documentary evidence. I went back to contracting at that point.

[worzelGummidge]

Rubbish.
I was a permy this financial year for three days after 10 years contracting.

[larson]

Returnig to perm job after a contracting gravy train is almost impossible, especially if you need to work more than an hour away from home.

You incurr travel and accomodation expenses, PAYE + NI on all your earnings and no tax reduction for your expenses, and they pay you less.

what a joke!

As with most things in life, the majority don't do quite so well, with a few contractors creaming it and doing well, all down to making the correct choices at the right time.

From the accommodation threads and money related posts, I'm realising that for the most part contracting for the money is over-rated, unless you are in a very niche area and have a very specialised skillset. I would say that overall, for the majority, the difference between permie and contracting is more to do with 'being your own boss'.

I personally plan on going permanent for a few years, and thankfully have a CV that is not just contracting roles for the last five years, so I haven't encountered any contractor stereotypes, as hiring managers don't view me as a contractor.

I'm happy with getting £50k to £55k permanent, with the car, ability to rig fuel expenses so I pay nothing for a car, pension, shares and any other appropriate benefits. At the current time I'd rather have a reasonably secure job that is highly paid for a permanent position, than have a mediocre contract rate. We're still in volatile times.

[MarillionFan]

It's really about making the best choices as has been said. I've twice jumped into perm from a contract and in both cases the client converted my rate to a perm salary which gave me the same takehome.

So it's about taking the best deal at the time. That may not be contracting

[Fred Bloggs]

That's an impressive perm job salary then. For me, in process engineering there is much, much more of a "going rate" mentality and all the decent big Co's pay around about the same. The smaller Co's all pay less. That's why there's really very little movement of staff between the firms other than the odd guy who is moving for a promotion for maybe a 10 or 15% pay rise that they wouldn't have got without the move.

[BolshieBastard]

Nonsense. After the crash in 2000, I got a permie job as development manager, which entailed around 3 hours on the road, per day, due to the M25. The key word there is "manager". Company car, free fuel, own hours, working from home.

My overall tax rate was pretty high. But I could take the car abroad and claim expenses for fuel overseas.

I moved on from that to Head of Development of a Swiss multinational. Then things got political. I got a very large payoff (when my boss and his boss (dumb and dumber)) tried to stitch me up and I had the documentary evidence. I went back to contracting at that point.

Er, that was 10 years ago. Or do you live in a time warp!?

[MPwannadecentincome]

Returnig to perm job after a contracting gravy train is almost impossible, especially if you need to work more than an hour away from home.

You incurr travel and accomodation expenses, PAYE + NI on all your earnings and no tax reduction for your expenses, and they pay you less.

what a joke!

I didn't do so well contracting rate-wise - the permie market has picked up and I managed to get them to increase the salary on offer before accepting the interview, ok I have to earn my bonus's but I'm definitely better off as a permie now with paid holidays and all the tax and NI and travel expenses.

[Green Mango]

Quoting contractor uk on pay rates from 6/1/10 :-

"The festive season has brought little in the way of goodwill to the nation’s IT contractors, with rates dropping back from their third quarter surge. In October 2009, we reported a dramatic rise in rates, moving up 18% from the average of £25.94 at the end of quarter two, to £30.53. As usual, these averages are taken for the ten most commonly requested IT contractor roles.

But the last few months of the year have brought a slide backwards, completing an up and down 2009. Average rates now sit at £28.45, a drop of 7%, but still comfortably above the £25.94 low set at the end of June. But, given that the dip has come in the final part of the year, as thin budgets run out, and new projects are held back, this dip should not be unduly concerning."

Average contractor rates aren't that high and if an hour rate equates to a yearly salary in k then contractors aren't really doing that well in monetary terms which is why many seem in the tulip as soon as they are out of work for a few months.

[The Wikir Man]

Returnig to perm job after a contracting gravy train is almost impossible, especially if you need to work more than an hour away from home.

You incurr travel and accomodation expenses, PAYE + NI on all your earnings and no tax reduction for your expenses, and they pay you less.

what a joke!

I was talking to two companies about permie roles recently - the only thing I would have lost out on (and therefore take the cut) was on holidays. For a permie role I would have had to take a maximum of 30 days paid holiday a year, compared with the 40-60 a year I take now.

Not too bad, though, but new contract turned up before they could make a definite offer so I took the bird in the hand.