Contract or Perm

[kermitt]

Looking for some helpful advise please. Have been operating through Ltd (outside IR35) for last 18 months and have 6 months remaining on my current contract. My old permie boss has contacted me saying they are looking for someone to do my old job and I have been his first choice, however it may be a permie position. Having just got off the phone with him I have an interview tomorrow morning.

Although I like the contracting lifestyle I am getting a bit bored at the current gig and due to the 24month rule would need to leave before another 6 months is up anyway which may mean travelling further afield. However to take this job would mean that work is 20 mins journey from home. However, at the mo I need the money as my GF is studying and does not finish for a year so we only have the money that I bring in which was the reason behind contracting in the first place so that we would not struggle. It would be ideal for me to take this job on a contract for 12 months or so because I already have things in place for the year i.e. pension, accountant, insurances etc and would really like to approach this possibility during the interview tomorrow.

However I just want to know some examples to justify a position as a contrator as opposed to being a permie, in terms of how it would benefit them other than I pay my own pension, expenses, travel. This would potentially be direct through my own Ltd and no agency involved and so I would even consider dropping my rate a bit to secure the contract.

help please as I don't want to foul up this possible opportunity.

[Scrag Meister]

As you obviously get on ok, just talk to him about it.

See what perm rate is on offer, add Employers NI, add in 6 weeks holiday, 20% pension contribution, allow for a couple of days sick and double it

He can only say "NO, it's a perm role end of"

[malvolio]

There's a lot of good reasons why you shoud use freelances on the Britains Brain Gain website. Start from Why use freelancers? and pick out the relevant bits!

[northernladuk]

Take the permie job, sounds like you are better suited to it.

[lukemg]

WHS - Sounds like a perm job might suit you better. Are you sure you can go and do your old job happily ? Was money the only reason you bailed ? If you were going back at a slightly higher level then I think that might be more tempting.
I am earning more on contract but not by an amazing amount due to 25% of the time out of work, you should have a good feel for the market for your skills by now and whether you can get a constant stream of work. Plus - who says you have to leave after 24 months ? expenses get squeezed but maybe a rate rise could be negotiated.

[kermitt]

Thanks guys for your input. I got a provisional offer of a contract directly with Client Co through my own Ltd. I say provisional because I still need to organise a contract to give them and discuss day rate which I will do tomorrow. So am thinking day rate +10% and a more senior title added to the position, otherwise no deal.

There is a chance though that they may not want me to work outside IR35 which is what I am planning. If that is the case roughly what sort of percentage should I be adding onto an hourly rate to cover the difference and secure the same take home? I saw on some IR35calc somewhere that its 15%.

Although I shall be trying my hardest to ensure it is outside.