Your call, of course, but the net take home from a £475 a day contract is very roughly equivalent to £63k gross salary as a permie by the time you factor in stuff like holidays, employers NICs, sick pay and so on.
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IB - Permie or Contracting
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sufficiently advanced stupidity is indistinguishable from malice - Asimov (sort of)
there is no art in a factory, not even in an art factory - Mixerman
everyone is stupid some of the time - trad. -
Yes it is more than that, substantially more, provided you have no travel expenses.
If you do 220 days on 475 a day and look in your bank account at the end of the year you will have substantially more cash in your account than on a salary of 63K.
Of course if you're sick, pay for training and live in hotels and fund an expensive home office, and spend 10% of your time with sales and marketing then the conversion is about right.
A standard conversion is not a good idea, just calculate how much you will have in the year, and compare that to take home pay. You know
475 * 220 is about 100 grand then you pay the accountant and that's it.
what's left after tax goes into your account, and that's what matters, a conversion that applies to any self employed bod is way to generalised to be of use.Last edited by BlasterBates; 16 February 2011, 13:48.I'm alright JackComment
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cheers, its just that I had compared take home on 65k for a perm role offered to what I take home as contractor and I was taking home much more as a contractor (not that I would have taken the permie role anyway - for all the reasons mentioned above)
Originally posted by BlasterBates View PostYes it is more than that, substantially more, provided you have no travel expenses.
If you do 220 days on 475 a day and look in your bank account at the end of the year you will have substantially more cash in your account than on a salary of 63K.
Of course if you're sick, pay for training and live in hotels and fund an expensive home office, and spend 10% of your time with sales and marketing then the conversion is about right.
A standard conversion is not a good idea, just calculate how much you will have in the year, and compare that to take home pay. You know
475 * 220 is about 100 grand then you pay the accountant and that's it.
what's left after tax goes into your account, and that's what matters, a conversion that applies to any self employed bod is way to generalised to be of use.sufficiently advanced stupidity is indistinguishable from malice - Asimov (sort of)
there is no art in a factory, not even in an art factory - Mixerman
everyone is stupid some of the time - trad.Comment
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Originally posted by 2BIT View Postcheers, its just that I had compared take home on 65k for a perm role offered to what I take home as contractor and I was taking home much more as a contractor (not that I would have taken the permie role anyway - for all the reasons mentioned above)
The advantage of contracting, at least financially, is that you will earn the money gross, i.e. before tax, holiday, pension, sick pay etc. You are then free to arrange your affairs to suit you, within the law of course. So take 2 days' holiday a year, or 50, it's up to you.
Assuming of course that you are able to win contracts for most of the year.
In a permie role, you are given a "package" which means that the employer has forced upon you a defined set of benefits that you cannot change.
I also couldn't imagine working in a permie role for £65k, i.e. being tied to one employer for that amount.Comment
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Originally posted by ChimpMaster View PostI'd go for the £475 contract all the way, but that's because I'm not too concerned about the career aspect just yet and I also don't take off too much time. During the first 3 years of my contract life I only took off 4 or 5 days each year.
The advantage of contracting, at least financially, is that you will earn the money gross, i.e. before tax, holiday, pension, sick pay etc. You are then free to arrange your affairs to suit you, within the law of course. So take 2 days' holiday a year, or 50, it's up to you.
Assuming of course that you are able to win contracts for most of the year.
In a permie role, you are given a "package" which means that the employer has forced upon you a defined set of benefits that you cannot change.
I also couldn't imagine working in a permie role for £65k, i.e. being tied to one employer for that amount.sufficiently advanced stupidity is indistinguishable from malice - Asimov (sort of)
there is no art in a factory, not even in an art factory - Mixerman
everyone is stupid some of the time - trad.Comment
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Originally posted by ChimpMaster View PostI'd go for the £475 contract all the way, but that's because I'm not too concerned about the career aspect just yet and I also don't take off too much time. During the first 3 years of my contract life I only took off 4 or 5 days each year.
The advantage of contracting, at least financially, is that you will earn the money gross, i.e. before tax, holiday, pension, sick pay etc. You are then free to arrange your affairs to suit you, within the law of course. So take 2 days' holiday a year, or 50, it's up to you.
Assuming of course that you are able to win contracts for most of the year.
In a permie role, you are given a "package" which means that the employer has forced upon you a defined set of benefits that you cannot change.
I also couldn't imagine working in a permie role for £65k, i.e. being tied to one employer for that amount.
Especially once he realises that the "bonus" is likely to be peanuts for the extra hours he's asked to work. And if he's lucky enough to get a bonus that would bring him anywhere near what a contractor on a decent rate in an IB would earn, he'd then get hammered for tax at source: 40% then up to 50%. Oh, and then there is the 3 year rule on bonuses; jumping ship to improve his "lot" in life may cost him 3 years worth of bonuses... Unless he can get the new Bank - and it would have to be another Bank, or he's screwed - to "buy out" his old bonuses. That's very unlikely for an I.T. bod.
Went through all the above with the IT Director here when I was offered permie. We both decided I was financially far, far better off - both short-term and long-term - staying contract. Hence why I still am (and just about to renew yet again. )nomadd liked this postComment
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nomadd
Seeing as I've gone IB permie - Ill try and post my 2p worth on this tonight.
Unfortunately can't really post much during the day these days.Comment
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Originally posted by moorfield View Postnomadd
Seeing as I've gone IB permie - Ill try and post my 2p worth on this tonight.
Unfortunately being an IB permie I can't really post much during the day these days.Last edited by eek; 16 February 2011, 16:45.merely at clientco for the entertainmentComment
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Originally posted by moorfield View Postnomadd
Seeing as I've gone IB permie - Ill try and post my 2p worth on this tonight.
Unfortunately can't really post much during the day these days.
Maybe you've found a way around all this stuff? I'd be interested to hear. A huge Golden "Hello" and a guaranteed Golden "Goodbye" would be enough for me; especially if the gap between the two was under a year.
Cheers.nomadd liked this postComment
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Originally posted by secontrator View PostHi all,
managed to secure a permie in IB (75K VP role) also, im in a final round for a contracting role pays £475/day in IB (likely i will get it)...So, im in a dilemma to pick one... going thru all sort of pros & cons of both...
any comments will be much appreciated!..
Ofcourse, i know it depends on individual circumstances when it comes to make up the mind...
Thanks
1. Continuity of experience/no gaps on the CV.
I work in a pretty niche area anyway, this was an opp to skill up and do some stuff I've not covered in my area, permiedom was the only option on offer for this one. The next contract gig can wait for a year or so until we're through all the doom, by which time I can justify asking top rates (>£750/day).
2. Continuity of cashflow.
I could have sat on the bench living comfortably off divis for a while, but I start getting twitchy when I can't see where at least the next 12 months cashflow is coming from...
3. Easy commute + time to myself.
Direct commute into London, no pfaffing on the tube, after an 18 month stint commuting out to NL. In the office just after 9, out just before 6 on an average day. Plenty of time to myself to start planning my exit out of IB work.
4. Being an IB permie is really not that much different to being a "bum on seat" contractor on a day-to-day basis. Same cr4p, different kind of T&Cs.
I've generally done 18month-2year stints in IB contracts.
It doesn't feel much different where I am now.
I'm not (and never intend to be) senior management anyway.
I have the occasional permie chores to do - reviews, appraisals etc. but this is all pretty easy stuff to bat away.
A pleasant perk is having all my holidays booked out and approved already for the next year and aligned to all the school half terms/holdidays - first time I've managed that.
5. I've seen an awful lot of visa-bob type hiring going on from the other side which worries me. Having just read through the state of the market thread I feel this was the right call for me at this time. I don't doubt I will be back contracting again within the next 18 months or so, but I'll stick around at least until the end of the next bonus cycle.
HTH.Last edited by moorfield; 20 February 2011, 18:31.Comment
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