Urgent Help!

[Peter Loew]

I've got an offer for a contract with reduced hours (something I wanted as I am working on my own startup).

The problem is the rate is now much lower than I'm used to, falling just below 400pd. I am used to rates around 500pd. It will give me great experience and exposure to a different industry and I really like the role, it's just the rate that worries me.

I'm thinking about my balance sheet at the end of the year and my ability to get a mortgage later in the year as well. But, the role seems great and I have no other offers at the mo.

Any advice?

P

[saptastic]

If you are working on your own start up which I assume is your long term goal, then does the reduced rate of the contract matter? If there is not much else on the horizon it makes sense.

[kingcook]

I've got an offer for a contract with reduced hours (something I wanted as I am working on my own startup).

The problem is the rate is now much lower than I'm used to, falling just below 400pd. I am used to rates around 500pd. It will give me great experience and exposure to a different industry and I really like the role, it's just the rate that worries me.

I'm thinking about my balance sheet at the end of the year and my ability to get a mortgage later in the year as well. But, the role seems great and I have no other offers at the mo.

Any advice?

Sorry to be blunt, but take one of these 3 choices:

a) accept the < £400/day rate

b) Negotiate for more (and accept the possibility that the client/agent will say no, and/or offer the contract to someone else

c) Walk away and earn £0/day, in the hope that another part-time gig comes along.

[Peter Loew]

You're both right.

My head was filled with a million thoughts at once. Offer accepted.

Thanks!

P

[northernladuk]

I've got an offer for a contract with reduced hours (something I wanted as I am working on my own startup).

The problem is the rate is now much lower than I'm used to, falling just below 400pd. I am used to rates around 500pd. It will give me great experience and exposure to a different industry and I really like the role, it's just the rate that worries me.

I'm thinking about my balance sheet at the end of the year and my ability to get a mortgage later in the year as well. But, the role seems great and I have no other offers at the mo.

Any advice?

P

How can we decide this for you. You have not told us how many days you will be working? Is it £400 a day for reduced hours and £500 for full hours so your actual £ per hour is higher?

Are you withdrawing enough divis to meet the lower limit? If so your income won't change as you can't pull £400 a day rate out of your company in one year and not break the divi tax threshold.

You are going to get a mortgaged based on your max rate with no flexibility? Sounds like a very dangerous situation. What will do you if you are benched for a period, rates in general reduce etc if you are mortgaged up to the max amount?

You are also asking us to make a lifestyle based decision. Not knowing your lifestyle it would be impossible to do.

[kingcook]

Good luck with the startup

[northernladuk]

Any advice?

P

Use a more useful title than 'Urgent Help!'? HTH

[Peter Loew]

How can we decide this for you. You have not told us how many days you will be working? Is it £400 a day for reduced hours and £500 for full hours so your actual £ per hour is higher?

Are you withdrawing enough divis to meet the lower limit? If so your income won't change as you can't pull £400 a day rate out of your company in one year and not break the divi tax threshold.

You are going to get a mortgaged based on your max rate with no flexibility? Sounds like a very dangerous situation. What will do you if you are benched for a period, rates in general reduce etc if you are mortgaged up to the max amount?

You are also asking us to make a lifestyle based decision. Not knowing your lifestyle it would be impossible to do.

3 days per week @ the lower rate. Yes I'll be drawing up to the max div assuming I stay there for a year. The mortgage concern is simply deciding how much I can borrow based on my daily rate; it would not be based on my max rate.

Thanks.

P

[Peter Loew]

Good luck with the startup

Cheers

[Peter Loew]

Use a more useful title than 'Urgent Help!'? HTH