Contract or perm

[eternalnomad]

I have been offered a very lucrative role working for and previous "boss" at a previous contract.

He is happy for me to take it as contract or perm and has left the decision to me. Financially they are both about the same take home money

Can anyone suggest and sensible reason(s) why I may want to take the permie option because I really am struggling to justify moving to the dark side.

 

[The Lone Gunman]

If they are financialy the same then go perm. Holiday pay, sick pay, redundancy no worries about IR35 no hassle getting accounts and tax payments out on time.

 

[Lucifer Box]

Agreed. If they genuinely are the same financially, why not go perm for the duration of this one?

 

[eternalnomad]

Agreed. If they genuinely are the same financially, why not go perm for the duration of this one?

Permie package includes a large performance related bonus which make it a less straight forward decision. On the face of it, the delivery targets are sensible and acheiveable but you never know !

If I assume I am IR35 caught (which would be the first time I have ever "bent over") then yes, according to the contract-to-perm calculator (http://calculator.contractoruk.com/) they are the same give or take a few quid per month.

For the first time in many (>10) years I am seriously considering the dark side and it makes me feel quite ill

Decisions, decisions !

 

[The Lone Gunman]

And dont forget the satisfaction of telling them where to stick their lousy job once a proper contract comes along, a feeling you havent had in a long time.

 

[Central-Scrutiniser]

There is no dark side of Employment, perm or contracting.
As a matter of fact it is all Dark.

 

[BlasterBates]

I would take contract, just because of the tax benefits i.e. no NI and Accountants masssging your P&L for you, leaving money in the company for a rainy day etc etc. Basically it costs your employer the same, so he doen't care, and he won't be looking for cheaper permies, so I can't see it being more secure. The thing that makes a permie job good is a great pension scheme and early retirement but this only works if you work for big companies that offer you a career, like the NHS or BP oil, if you hop around it doesn't do you any good.

 

[eternalnomad]

I would take contract, just because of the tax benefits i.e. no NI and Accountants masssging your P&L for you, leaving money in the company for a rainy day etc etc. Basically it costs your employer the same, so he doen't care, and he won't be looking for cheaper permies, so I can't see it being more secure. The thing that makes a permie job good is a great pension scheme and early retirement but this only works if you work for big companies that offer you a career, like the NHS or BP oil, if you hop around it doesn't do you any good.

Good points, very well made Blaster.

I agree that these days the perm role is no more "secure" than a decent contract.

I need to consult Mrs Nomad - her immense powers of female rational thought will make the easy decision for me NOT !

 

[vetran]

Why IR35 caught?

Why IR35 caught?

If you have an onside client, able tro write your own contract etc why are you caught?

If the bonus is available to permie why not a similar delivery bonus in the contract.

Do the math and decide, but IR35 shouldn't be a problem if you deal with it right.

 

[Fungus]

The following questions might make the choice easier:

How secure is the company? Some companies are no more secure than a contract.

How long do you tend to stay on a given contract?

Do you prefer regular change with associated challenges? A permie can get pigeon holed.

Does the permie job offer a chance to learn new skills? It might offer you the opportunity to broaden your skills, making you more employable.

How far do you tend to travel to the contract, and is the permie job nearer?

How long do you spend between contracts?

How much do you value making friends in a company?

I don't think there's any obvious answer as to which is best. I would be tempted to go contract with the option to go permie on the understanding that the permie role would be long term. That way I would see what the place was like.