Which option would you choose?

[CDP90]

1. Full time WFH - £650 / day, inside ir35, long contract (min 2 years).

OR

2. 180K package, permanent staff, twice a week to office (2 hours commute each way). I have no commitments, so I can commute if required but I have been doing WFH for more than 8 years (before COVID) hence unsure about the challenges I face.

Appreciate your feedback / vote.

[milanbenes]

I would never ever be an employ again

why, and what I love about contracting

I am a tradesman, and all I want to do is my trade to the best of my ability, and I don't give a monkeeeees about yearly performance reviews, town hall meetings, waiting to see if I get a bonus or not, playing politics to keep my role

and

what I love about contracting is, all I have to do is my job on the terms that we agreed for the period that we agreed, I have complete responsibility for my skills and positioning myself according to where I see future demands, and I don't have to deal with any of the non-trade nonsense that I would have to deal with as an employee

so, my answer is the contract

but, I don't know how the inside ir35 rate compares to the after tax salary as I am not on the island

Milan.

[WTFH]

... I don't give a monkeeeees about yearly performance reviews, town hall meetings, waiting to see if I get a bonus or not, playing politics to keep my role

and

what I love about contracting is, all I have to do is my job on the terms that we agreed for the period that we agreed,...

OK, so you want to do your job, and when the period of that contract is up, if they want to keep you on, you'd have a contract review with them, and maybe they'd increase your rate, but most likely they wouldn't.

When I read about contractors "not wanting to play politics", I realise they are not very good contractors. We play more politics that anyone else. Keep our head down, do the job well, make sure they know you are doing your job well, make sure you know who to blame when it's not happening etc.

I look at permies and they have their half yearly town hall, which is a 3 hour meeting during working hours, followed by a meal out and unlimited drinks. All paid for, no funny business, no "how can I claim this on expenses".

I kinda think you're missing the point, but that's unsurprising.

[milanbenes]

lol

Milan.

[Snooky]

1. Full time WFH - £650 / day, inside ir35, long contract (min 2 years).

OR

2. 180K package, permanent staff, twice a week to office (2 hours commute each way). I have no commitments, so I can commute if required but I have been doing WFH for more than 8 years (before COVID) hence unsure about the challenges I face.

Appreciate your feedback / vote.

Gosh, that's a tough one.

It's a very decent salary and of course that should come with other benefits like pension, paid holiday, private healthcare etc. If you were to work the same schedule (260 working days a year - 25 days holiday - 8 bank holidays), the permanent role comes out head & shoulders ahead of the contract in financial terms, since it's inside IR35 so the taxation basis will be virtually identical. And that doesn't even take the ancillary benefits into account.

You don't say what the commute is? If it's by rail, that obviously comes out of your net income so, to pay (say) £3k a year for your travel will mean you have to earn at least £6k a year more at your marginal tax rate. But even then the contract is still way off what the permie role will give you financially. Driving will probably work out cheaper.

So I assume what you're really asking is opinions on whether the extra nonsense that comes with being permie, plus the 8 hours commuting a week, is worth the extra money.

Much as I loved contracting in days gone by, it's not what it was and so I don't think I'd struggle too much with permie things like town halls & annual reviews. But it really depends how much stupid employee stuff that particular organisation is into.

When I was younger, I'd have put up with 4 hours rail travel twice a week for the extra money. I spent 30 years commuting into London, 2.5-3 hours a day total, because that's where the big money was. You can relax, you can read, you can sleep, you can get your own admin done. But I'd never put up with 4 hours driving twice a week unless I really couldn't find another job. Some folks love driving - I hate it.

So my view on this is that I'd take the permie role if it was a rail commute. Once you have your feet under the desk and have proven your worth a little, you might find that the 2 days a week in the office isn't as strict as you think, and other colleagues are only in once a week or even less.

[CDP90]

Gosh, that's a tough one.

It's a very decent salary and of course that should come with other benefits like pension, paid holiday, private healthcare etc. If you were to work the same schedule (260 working days a year - 25 days holiday - 8 bank holidays), the permanent role comes out head & shoulders ahead of the contract in financial terms, since it's inside IR35 so the taxation basis will be virtually identical. And that doesn't even take the ancillary benefits into account.

You don't say what the commute is? If it's by rail, that obviously comes out of your net income so, to pay (say) £3k a year for your travel will mean you have to earn at least £6k a year more at your marginal tax rate. But even then the contract is still way off what the permie role will give you financially. Driving will probably work out cheaper.

So I assume what you're really asking is opinions on whether the extra nonsense that comes with being permie, plus the 8 hours commuting a week, is worth the extra money.

Much as I loved contracting in days gone by, it's not what it was and so I don't think I'd struggle too much with permie things like town halls & annual reviews. But it really depends how much stupid employee stuff that particular organisation is into.

When I was younger, I'd have put up with 4 hours rail travel twice a week for the extra money. I spent 30 years commuting into London, 2.5-3 hours a day total, because that's where the big money was. You can relax, you can read, you can sleep, you can get your own admin done. But I'd never put up with 4 hours driving twice a week unless I really couldn't find another job. Some folks love driving - I hate it.

So my view on this is that I'd take the permie role if it was a rail commute. Once you have your feet under the desk and have proven your worth a little, you might find that the 2 days a week in the office isn't as strict as you think, and other colleagues are only in once a week or even less.

Travel cost is about 1K / year. Its the company rule to be in central London office but majority of my team members are not based in London, so essentially it's just to fill the desk I guess. I was thinking of doing a year perm and see how it goes, and it is not sustainable then I can negotiate to go back to contract and full-time WFH with the current or look for a new employer.
I don't have any issue with the town halls, meetings, politics [I like to keep a low profile anyway ].

[CDP90]

OK, so you want to do your job, and when the period of that contract is up, if they want to keep you on, you'd have a contract review with them, and maybe they'd increase your rate, but most likely they wouldn't.

When I read about contractors "not wanting to play politics", I realise they are not very good contractors. We play more politics that anyone else. Keep our head down, do the job well, make sure they know you are doing your job well, make sure you know who to blame when it's not happening etc.

I look at permies and they have their half yearly town hall, which is a 3 hour meeting during working hours, followed by a meal out and unlimited drinks. All paid for, no funny business, no "how can I claim this on expenses".

I kinda think you're missing the point, but that's unsurprising.

I agree with you. I don't have any issue with the politics, town hall, meeting etc. May be I can utilise 8 hours a week to read and prep for certifications.

[hobnob]

180K package, permanent staff, twice a week to office (2 hours commute each way).

Could you do 2 consecutive days in the office? If so, it might be better to stay locally and save yourself a 4 hour round trip.

[vetran]

Could you do 2 consecutive days in the office? If so, it might be better to stay locally and save yourself a 4 hour round trip.

I have had colleagues do this they either get a season ticket to the cinema or join a Gym, a room in a house about £30 a night its cheaper than the fuel. Their commute was a little longer.