Determining fixed term contract rates from day rates

[Kiwi86]

Hi, I am currently a permanent employee and have decided to leave to pursue the world of contracting, however it has been proposed I remain for (at least) 1 month to help the business through a rough patch.

I have been looking at contract rates, and know I would be asking for around £485 / day, but I know the organisation prefer to go down the fixed term contract route, due to our industry and VAT situation.

How can I come up with an acceptable fixed term contract rate, that is the equivalent to £485 / day? I am new to both FTC's and contracting on the whole.

Thanks.

[northernladuk]

Staying with your old employer will put you inside IR35 for a start so you need to investigate and understand the implications for that.

FTC is not contracting. It's a horrible place inbetween both worlds and you will likely be paid pro-rata. Have a search on the forums for FTC using the search method in the link below...

http://forums.contractoruk.com/welco...uk-forums.html

Might just be easier to stay on for a month under current contract, finish the work and make a clean break. There is no proper contracting to be done here.