70k+bonus vs 400pd contract

[AnthonyQuinn]

I would appreciate any help in choosing between the two.
Between a permanent position offering 70000 + bonus + pension and a contract position (3 months initially with possibility of extension).
There's been a gap of 2 months after my last contract (a year's continuous work) but that's only because i refused a few initial offers at tulip rates.
Please advise.

No brainer if all factors are factored in. permie is a batter deal here.

[DaveB]

70k+bonus+pension.

So say 10% bonus and 10% employers pension contrib. = 84k before tax.

253 working days per year - 25 days holiday = 228 days worked per year. Knock of three for illness 225.

84k / 225 = £373 per day before tax = Approx. £255 day after tax allowing for the fact that the pension contribs are tax free.

£400 pd after tax assuming no funny business with off shore accounts etc equates to approx. £275 per day with equivalent pension contribs.

£225*225 = 50,625 pa gross permie.

To match that would need roughly 184 days work on a £400 per day contract. So as long as you are in work for 9 months or more without a break you are ahead of the game.

Yes I know these figures aren't accurate to the penny but they do give an indication.

[TykeMerc]

Add redundancy rights (after a while obviously), training and possible other benefits and it's quite tempting.

In your situation; despite being a confirmed contractor of almost 20 years; I'd be seriously considering the permy role.

[kandr]

Is it just about the money though, what about freedom from all the corporate BS and the fact you can leave without much hassle if its crap.

[lukemg]

Key factor for me would be - In 3-5 years time, can I re-enter the contract market at a higher level than currently due to the skills and experience acquired in the perm role. If the answer is yes, snatch hand off and see out the coming storm in safe harbour....

[Ignis Fatuus]

Is it just about the money though, what about freedom from all the corporate BS and the fact you can leave without much hassle if its crap.

Fixable. Just ignore the corporate BS. Leave if you want.

[portseven]

Ignoring the money, and if you are thinking that the 'permie' is a safer bet, I would beg to differ.

Currently clientco have all had to go through 2 waves of 'reapply for your job' in the past 12 months.

I would argue that contracting is more stable as you are master of your own destiny and you plan for periods without work (though never had any in 8 years of contracting)

[d000hg]

£70k is pretty big, hopefully means doing something high up you can use to your advantage?

[d000hg]

Ignoring the money, and if you are thinking that the 'permie' is a safer bet, I would beg to differ.

Currently clientco have all had to go through 2 waves of 'reapply for your job' in the past 12 months.

I would argue that contracting is more stable as you are master of your own destiny and you plan for periods without work (though never had any in 8 years of contracting)

Just because one company does that doesn't make it the norm. Fundamentally, as a permie you expect to stay until told otherwise and as a contractor you work on the opposite premise.

[yetanotherbob]

Everyone,
I must say i've got some really good insights from all your responses.
Also, since the permie job is in a sector with a traditionally high 'barrier to entry' (oft discussed on these forums), I think i'll just take the plunge this time.
As such i'm a contractor at heart but no harm jumping fence once in a while
Worst case: I'll get annoyed out of there soon.
Best case: Better contracts a few years down the line, contacts, learning etc.. Strategic move for My LTD.