Daily rate

[Wanderer]

Using the various online calcs the rate on offer would seem to appear to offer a sizeable increase, in the region of 3k per month, more if income split or other steps taken...but even without those thats a lot of money.

How much are they offering you? The £700-£800/day by my formula is quite a lot of money but you have to remember that there's no company car, pension, BUPA, job security, redundancy, sick, holiday, maternity/paternity leave etc. You may end up working short contracts with breaks in between too so you need to keep money aside for bench time. If you are good at what you do and land a stable, long term contract then you could be quids in.

You also have to remember that you would be in the top 5-10% of the market on that rate and no doubt quite specialised so maybe more susceptible to budget cuts or projects getting canned. If it was a more middle of the road position then maybe you wouldn't be in such a high risk area.

Whatever way I slice it the reward outweighs the risk of this step into the unknown..but something in the back of my mind still nags at me about walking out of a perm role when the global economy appears to be going to hell in a handcart. Its a tough one.

Choose wisely - only you can make the decision.

[MarillionFan]

Yeah, so by that thinking, someone on £50k/year permie could quit and go contracting on £215 / day.

windowlicka wasn't asking how much a £100k salary was per day, the question was what was the daily rate required to jump from permie to contracting and the answer is "contracting hourly rate = permie annual salary / 1000".

No it's not. The calculator is accurate.I left a 100k job/benefits 20 months ago and a mid range £400 per day has left me with the same take-home. Actually with the benefits LTd provides better off. This £700/£800 rate is nonsense. You may as well say, let's call it £20k per day. You only need 5 days per year at that rate and you can have 51 weeks a year holiday.

Sorted.

[windowlicka]

600 per day - rolling six month contracts in a consultancy type role with multiple clients/projects so no anticipated bench time but nothing is set in stone obviously so thats where a degreee of risk comes in.

[d000hg]

No it's not. The calculator is accurate.I left a 100k job/benefits 20 months ago

(No you didn't)

and a mid range £400 per day has left me with the same take-home. Actually with the benefits LTd provides better off.

That assumes you work full-time, year in, year out. Even the best/luckiest contractor should factor in some bench time, 10% as the very minimum but I'd feel safer basing calculations on 200 days per year. Even at that level, you gross £100k at only £500/day but that's to break even with increased risk... if you're sitting pretty on a£100k salary you need a significant motivation to leave.

[MarillionFan]

(No you didn't)That assumes you work full-time, year in, year out. Even the best/luckiest contractor should factor in some bench time, 10% as the very minimum but I'd feel safer basing calculations on 200 days per year. Even at that level, you gross £100k at only £500/day but that's to break even with increased risk... if you're sitting pretty on a£100k salary you need a significant motivation to leave.

200 days per year is a worse case scenario. But then it depends if you're willing to move your day rate around and location.

Regardless of the calculation methods above(of which mine is the most accurate) you need to plan a year ahead at a time with contracting. That should consist of a top level calculation of 200/215/230 days for a worst case/best case. Holidays/breaks should be planned in situe, but should be flexible to move dependent on work. Also consider distance you are willing to travel or location.

I plan a 'take home' rate after expenses & travelling time. I use that as base calculation for the year and work towards attaining as many days at that adjusted rate. For me a contract in central London would be minimum £500 per day due to the hassle/cost of getting there. I'd burn a £100 per day getting/staying there, so £400 for a local contract would give me the same.

So you also need to factor location/expenses/time and compare accordingly.Something which the first calculation above doesn't factor in.

(Pssst. And you were correct. It was £92 base, +6k car and 15% bonus(which I didn't count) but don't tell anyone)

[ChimpMaster]

MF I've never seen you spout so much nonsense, and that's saying something.

You left a 100k job to work on just 400/day? I hope there was something other than the financial "gain" to motivate you.

Years ago I left a £65k job (+£25k bonus, based on utilisation) to take a £600/day contract. I would never have left that job for £400 or even £500. Your 'calculation' has not accounted for anything other than the take home pay.

Of course, if you're not able to achieve more than 400, then do accept my apologies - it is not my purpose to demean you. However, the fact that you were on £98k must mean that you were valued as a permie, but for some reason not so much as a contractor.

[v8gaz]

And dont forget that %00, 700 or 800 a day sound brilliant, until you realise that you get 0 a day between contracts. And that happens. A lot. Especially for new boys without huge contact lists and experience of how to work the market.

[eek]

MF I've never seen you spout so much nonsense, and that's saying something.

You left a 100k job to work on just 400/day? I hope there was something other than the financial "gain" to motivate you.

In think if you read history boredom was a factor. To be honest I can see the point even at the current clientco I'm getting bored and that is in a consultancy with a very broad remit.

The problem is management are a bunch of clueless muppets and I prefer to delivery systems rather than paper trails.

[MarillionFan]

MF I've never seen you spout so much nonsense, and that's saying something.

You left a 100k job to work on just 400/day? I hope there was something other than the financial "gain" to motivate you.

Years ago I left a £65k job (+£25k bonus, based on utilisation) to take a £600/day contract. I would never have left that job for £400 or even £500. Your 'calculation' has not accounted for anything other than the take home pay.

Of course, if you're not able to achieve more than 400, then do accept my apologies - it is not my purpose to demean you. However, the fact that you were on £98k must mean that you were valued as a permie, but for some reason not so much as a contractor.

Correct. I was also overpaid & overworked.

I used to do 60+ hours a week and shed loads of travel as a perm in charge of 20 people, but now travel 10 minutes a day as a lone contractor for a rate that gives me roughly the same take home and as contracting only forms half of my total income I'm happy with it.

I still maintain that the 1000 calculation is too high.

[lukemg]

You would have to chuck in other factors -
Future promotions ? Locations - Does the consultancy want you flying all over the place ? (it sounds good at first but gets old very quickly). Got a family to consider ? or likely to get one in the next few years ?
I am averaging 39 weeks a year at the moment although on a good run currently.
100k perm, I would snatch your hand off. As for getting bored, I expect to, its I.T. and they pay you to do it.
Also - Can you make pension contributions to stay under any new tax threshold, claim back through self assessment ? Perms can do this I think.