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[northernladuk]

At the risk of being pedantic, both are full time roles, and both last as long as your notice period.

To be super pedantic that isn't even true in the contracting model...

[VectraMan]

One is a full time role. One lasts as long as your notice period. You can't compare them on monetary value alone.

At the risk of being pedantic, both are full time roles, and both last as long as your notice period.

[d000hg]

You don't say your previous salary to compare if £75k is a big jump up or not. With things changing in the contract world right now, I'd say take the perm job and watch how things settle after April 2016. A £400/day contract is nothing special - no need to rush to take it - but a £75k perm job is not that common. It will likely increase your skills and value if you do choose to go contracting in a year or two.

[SuperZ]

If someone was perm, where would the ltd co be getting its money from?

Sidelines/a little retained profit from previous year as a company should . If the company is not currently earning you can still pay into a pension or take dividends.

[DannyF1966]

Cool, so if someone was perm with a ltd co still running, they can take a dividend of £5k a year from ltd co tax free, even if salary in the 40% band? Currently that would result in an extra £1250 tax bill

If someone was perm, where would the ltd co be getting its money from?

[SuperZ]

Before you decide, read about the new tax rule applicable for dividends.

New dividend tax regime confirmed - Contractor Weekly

Cool, so if someone was perm with a ltd co still running, they can take a dividend of £5k a year from ltd co tax free, even if salary in the 40% band? Currently that would result in an extra £1250 tax bill

[raphal]

Before you decide, read about the new tax rule applicable for dividends.

New dividend tax regime confirmed - Contractor Weekly

[northernladuk]

One is a full time role. One lasts as long as your notice period. You can't compare them on monetary value alone.

[Contreras]

It's a lifestyle choice. So really depends what made you consider contracting in the first place?

Could you put up with the perm role for a couple of years and then reconsider a jump to contracting?

If not then I would say take the contract. But I agree that the perm deal is financially more attractive once you factor in bench time etc., so it would be a tough choice.

And absolutely do NOT rely on the agent for anything to do with company administration or tax matters.

[eek]

75K perm is a lot better deal than £400 pd IMO.

Yep.. 75k perm = £75 an hour on the old approach of salary / 1000 = hourly rate..

An 80 mile commute my be doable it may also utterly wear you out based on the number of steps in the journey..

[teapot418]

75K perm is a lot better deal than £400 pd IMO.

[fool]

Hi,

I've just finished serving my notice period after 6 years at a finance company as a perm. I always fancied getting into contracting.
As I was looking for my first contract, I was approached by a company for a perm role, offering 75k + bonus + other benefits. Though this is much more than what I was getting, downside is this may involve bit of traveling, but all paid.

Ironically, I also got a contract role offered at £400 a day, 80 miles away. Think it is doable by train as I live close to the train station. Agent is asking me to start ASAP, atm I don't have a ltd company or any thing else done. He wants to help me with these things as well.

As I have not done contracting before I don't know how these two options compare?
I am based in Swindon, if that helps.

I wouldn't get the agent to set up you're company, they're likely to give you a terrible deal. Rather, I'd go with a trusted accountant and ask them to do it. You could probably figure it out yourself but as you have a limited amount of time I think it's a good idea.

Limited Company FreeAgent Accountants Maslins Accountants would be my recommendation but you'll likely get others.

[philipk]

Hi,

I've just finished serving my notice period after 6 years at a finance company as a perm. I always fancied getting into contracting.
As I was looking for my first contract, I was approached by a company for a perm role, offering 75k + bonus + other benefits. Though this is much more than what I was getting, downside is this may involve bit of traveling, but all paid.

Ironically, I also got a contract role offered at £400 a day, 80 miles away. Think it is doable by train as I live close to the train station. Agent is asking me to start ASAP, atm I don't have a ltd company or any thing else done. He wants to help me with these things as well.

As I have not done contracting before I don't know how these two options compare?
I am based in Swindon, if that helps.