Contractor V Perm.

[will_bankfield]

Little help please.

Currently working as agency staff on service desk being paid £6.75 p/h - take home pay is £197.00 (£6.75 x 35 - Tax & NI) - get hols when I have worked long enough for them and that’s it.

Have an interview for contractor role paying £ 13.80 per hour (37.5 hours weekly) - Looking at forum posts I am caught by IR35 and classed as an employee - don't get paid hols.

What pay would this be in a perm job?

I ideally want a perm job but don't want to pass on contracting if the moneys good and the fact that more of it pays for not having hols, ssp etc.

Any help will be appreciated.

Thanks,
Will



PS: Hello Noob Here

[bodnobal]

Will go back to college get some skills then start aiming at some real work in three years.

Most contractors here don't get out of bed for less than £300 a day.

[d000hg]

Will go back to college get some skills then start aiming at some real work in three years.

Most contractors here don't get out of bed for less than £300 a day.

So this forum should only accept those on extremely high rates, normal people need not apply?

[Gonzo]

So this forum should only accept those on extremely high rates, normal people need not apply?

£300 per day is not an extremely high rate.

Of couse, you could just lie. I am sure that happens often enough.

[TykeMerc]

Little help please.

Currently working as agency staff on service desk being paid £6.75 p/h - take home pay is £197.00 (£6.75 x 35 - Tax & NI) - get hols when I have worked long enough for them and that’s it.

Have an interview for contractor role paying £ 13.80 per hour (37.5 hours weekly) - Looking at forum posts I am caught by IR35 and classed as an employee - don't get paid hols.

What pay would this be in a perm job?

I ideally want a perm job but don't want to pass on contracting if the moneys good and the fact that more of it pays for not having hols, ssp etc.

Any help will be appreciated.

Thanks,
Will



PS: Hello Noob Here

There's a very rough calculation many of us agree with which is:-

Hourly rate x 1000 = Annual permie salary.

It's extremely vague and may not be applicable to such a low hourly rate.

I hope that helps a bit.

[chris79]

Assuming you are going through an Umbrella and paying full PAYE, use the following:-

http://www.thesalarycalculator.co.uk/

Your Umbrella fees will be about ~£25/week so factor that in too.

Just do the maths:-

£13.80 x 37(hours) x 46(weeks paid) = £23487.60/year = £18,013.63 after tax/year = £18,013.63 - £1150 in umbrella fees = £16,863 after tax/year.

£6.75 x 35(hours) x 52(weeks paid) = £12285/year = £10,284 after tax/year.


Perm job might also pay towards a pension maybe?.. also contracting = no sick pay, no holiday pay (hence I calculated a 46 week year), less security, etc?... is it worth it for an extra £6k/year.. only you can know.

Personally if it were me I'd take the contracting role over an agency role, you would only need to work 7 months contracting to make the same money as you are at the agency. Good luck with the decision, and just because it's a 'low rate' in contracting terms shouldn't stop you asking questions here, contracting is contracting my friend.


HTH.

[bodnobal]

Sorry for sounding a bit offish, but my 1st contract in 1995 was for £250 a day and I was wet behind the ears when it game to negotiating.

Having someone talking about whether they can get £200 a week or £250 a week by going contracting is a bit daft in this fourm, maybe the OP could get better wages flipping burgers at Mackie Dees, or just wise up and learn some real IT skills that will enable them to easily command £300+ a day.

[KentPhilip]

Will go back to college get some skills then start aiming at some real work in three years.

Most contractors here don't get out of bed for less than £300 a day.

I've just got a new contract (woo hoo) at £300/day which is 20% less than my last gig, but I think it is a compromise worth making, because the coming economic firestorm over the next year is going to topple those on high rates first. A lower rate might just keep you renewed long enough to weather the storm.

[chris79]

Sorry for sounding a bit offish, but my 1st contract in 1995 was for £250 a day and I was wet behind the ears when it game to negotiating.

Having someone talking about whether they can get £200 a week or £250 a week by going contracting is a bit daft in this fourm, maybe the OP could get better wages flipping burgers at Mackie Dees, or just wise up and learn some real IT skills that will enable them to easily command £300+ a day.

Yes but the guy is probably half your age, with only 10% your working life experience.. doesn't mean he shouldn't be able to ask a contracting question on a contracting forum. To be fair he could have found the answers himself if he dug around, but I was bored so decided to help him out.

[TykeMerc]

I get the odd mail from Agents unable to read my CV about BAU support work at the rates that Will has posted, while the roles are not for me they obviously get filled.

I know EDS pay well under £20 an hour for some rollout commissioning roles as a friend with 30+ years IT experience team leads for not much more for them.

Crappy rates abound in IT contracting, it all depends on experience level.