Daily rate

[MarillionFan]

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.

I found it makes you complacent and frustrated. Least with contracting you can just up and go. The other thing I resented was the amount of bleeding tax I was paying. Contracting allows you to make the best use of that figure, it also allows you to use your contracting vehicle/cash for other things.

The only downside is that now it's more difficult for me to get a mortgage. That's about it.

[BlasterBates]

The "general rule", assumes bench time and travelling expenses. If you have a longterm contract close to home, you'll have a much better take home.

[lukemg]

Fair enough, I must admit it's been a huge plus for me that there is an end-date on a contract and option to bail. It has allowed me to put up with things that would have driven me crazy in a perm role.
I get stuck in and do all I can but I am always 'just visiting' and this keeps things in perspective. Small cog in the machine, don't sweat the small stuff.

[Wanderer]

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.

I'm not disputing the accuracy of the calculator, I agree that it's calculations are correct. What I'm saying is that suggesting that someone leaves a permie job to take on a contract which would earn the same gross amount (minus job security, company car, bonus, pension, share options, sick pay, annual leave, redundancy, training etc) is NOT good advice to be giving to noobies.

Maybe you did it because you can and more power to you, big man, but we are talking about general advice to someone considering switching.

[MarillionFan]

I'm not disputing the accuracy of the calculator, I agree that it's calculations are correct. What I'm saying is that suggesting that someone leaves a permie job to take on a contract which would earn the same gross amount (minus job security, company car, bonus, pension, share options, sick pay, annual leave, redundancy, training etc) is NOT good advice to be giving to noobies.

Maybe you did it because you can and more power to you, big man, but we are talking about general advice to someone considering switching.

I'm not being funny, 'but' some of you are making a big issue about 'permie' benefits.

Share options - most don't have
Sick pay - you calculate against no of days
Pension - most don't have but I concur
Training - Youre having a laugh aren't you

and of course job security we both agree there.

The truth is comparison should be done on take home pay. Permies pay for their own travel/food/broadband/mobiles/computer equipment/stationary/'company meals'/office space etc from taxed income. Contractors do not.

This 1000 calculation is seriously flawed and is
misrepresentive.

When you take into account the difference between running a business and profits after expenses versus permie
takehome after expenses then you'll see the 1000 calc
is nonsense.

Calculate on that basis.

[bobspud]

I'm sure the calcs work in a buoyant market. But right now with 20 years in the game and a red brick consultancy back ground. £550 a day is the top rate anyone is offering...

The big co's just wont pay 700/800 for an old school consultant when they can throw a grad in to drown for 20k. The only perk contracting offers any more are the tax advantages.

[Wanderer]

This 1000 calculation is seriously flawed and is misrepresentive.

That's what I got when I came back to contracting after being permie for a few years. Each to their own I guess. There are lots of opinions on this one.

[MarillionFan]

That's what I got when I came back to contracting after being permie for a few years. Each to their own I guess. There are lots of opinions on this one.

I agree. Two views. Probably best to meet in the middle ala Dragons Den.