Reply to: Newbie advice please, first contract interview this week!

[max]

Hi all, I've searched and googled and read and used calculators etc., but can't quite get to grips with my situation....

I'm currently a perm employee, basically an IT Director running the entire IT department for a European company. Salary is about 100K plus pension, bonus and all that. The bad news is I suspect I'm about to be made redundant. I suspect this because I'm involved in restructuring planning and can see I don't fit in to the end result! I'm keen to get another role in the bag soon as if I can overlap my redundancy payment with a job I can put some money in the bank, pay off some debts and so on.

So, a few CVs sent for perm jobs, but applied for one contract role. Skill set right up my street, all the stuff that really does it for me. Rate (as told to me by the agency) is £650 per day. Good news is I've been shortlisted and have an interview on Thursday afternoon.

Calculations so far:

Assuming legally claimed expenses of £280 p/m, contract in IR35, £650 per day rate, 44 weeks per year, using an umbrella to get me going, a couple of online calculators show a take home of about £7K p/m.

Given that my perm take home is about £5K (after 10% pension contribs and health insurance) I would seem to be at least 1k p/m better off.

So, questions (if you're still with me, if so... thanks!):

1. Are these realistic assumptions?
2. Does the calc look right?
3. If an agency quotes me a rate, is that the rate they pay me, or the rate the client pays?

This is a big step for me, I've climbed the greasy pole to the level I'm at and frankly, I've had enough of the bull that goes with it. One more "senior management meeting" trying to play "the game" and I may go mad!

Cheers all!

Your questions are answered...but

I'd suggest, go ltd day one.

If you get redanduncy (not a contractor word, my spell checker fails), you'll have money to get you by, so go LTD.

Get the gig then get set up.

If you do get it, then they'll sign you up for 6 months, at which point they'll try to convert you to perm, you say not right now, they give you another 6 months, and hopefully things will be on the uptick, then game on.

[BrilloPad]

Hi all, I've searched and googled and read and used calculators etc., but can't quite get to grips with my situation....

I'm currently a perm employee, basically an IT Director running the entire IT department for a European company. Salary is about 100K plus pension, bonus and all that. The bad news is I suspect I'm about to be made redundant. I suspect this because I'm involved in restructuring planning and can see I don't fit in to the end result! I'm keen to get another role in the bag soon as if I can overlap my redundancy payment with a job I can put some money in the bank, pay off some debts and so on.

So, a few CVs sent for perm jobs, but applied for one contract role. Skill set right up my street, all the stuff that really does it for me. Rate (as told to me by the agency) is £650 per day. Good news is I've been shortlisted and have an interview on Thursday afternoon.

Calculations so far:

Assuming legally claimed expenses of £280 p/m, contract in IR35, £650 per day rate, 44 weeks per year, using an umbrella to get me going, a couple of online calculators show a take home of about £7K p/m.

Given that my perm take home is about £5K (after 10% pension contribs and health insurance) I would seem to be at least 1k p/m better off.

So, questions (if you're still with me, if so... thanks!):

1. Are these realistic assumptions?
2. Does the calc look right?
3. If an agency quotes me a rate, is that the rate they pay me, or the rate the client pays?

This is a big step for me, I've climbed the greasy pole to the level I'm at and frankly, I've had enough of the bull that goes with it. One more "senior management meeting" trying to play "the game" and I may go mad!

Cheers all!

Why bother doing any research? You could have just asked and the friendly locals on cuk would have provided everything saving you tons of time!

[shanti]

hahaha .. you think just because you are a contractor you won't have to do that stuff!!! unfortunately for you contractors still have to play the game, even more than permies!!

Well its a different angle as a contractor. They are your client - most contractors are happy to kiss butt of client to get invoices signed off - that's business - if your client/customers aren't happy - your don't deserve to be in business. The clients are in business for that very same reason - pleasing/delivering to a customer who is king - and so it trickles down and makes sense.

Unlike the weird and un-wonderful world of the full-time employed. Go figure that one out - 'permanent' employment?? - which is not in fact not permanent at all - and Mr tax man extracting his lb of flesh at source - and more over - being a HR kitten for their meaningless programs and personal development plans that are supposed to make you feel loved and part of the happy family (until you get made redundant that is).

Why doesn't this chap go Ltd - surely he would be saving more?

[SandyDown]

frankly, I've had enough of the bull that goes with it. One more "senior management meeting" trying to play "the game" and I may go mad!

hahaha .. you think just because you are a contractor you won't have to do that stuff!!! unfortunately for you contractors still have to play the game, even more than permies!!

[NotAllThere]

Chances he's being screwed over anyway. The rate the agency quote is what you get. They're probably getting £1000 or so.

I left permie managementdom and haven't looked back. More money, considerably more fun.

[Ravello]

£650 is a low rate for an ITD - is it a small company? Or have the agency screwed up over? ITD youd be looking at 800-1100 for a decent sized company

He said his current role is ITD didn't mention what the contract role is...

HTH

[Ravello]

Negates the need to get the contract reviewed.

True, but the £150(ish) cost of getting a contract reviewed could mean anything up to 15% extra take home, so worth the investment I'd say..

[Liability]

£650 is a low rate for an ITD - is it a small company? Or have the agency screwed up over? ITD youd be looking at 800-1100 for a decent sized company

[Badger]

... using an umbrella to get me going...

Negates the need to get the contract reviewed.

[chef]

+1 Talk to QDOS or Lawspeed and have them review your contract for IR35ness and ammend if necessary.

or Bauer & Cottrell, also highly recommended

oh and for doing your research first before asking for help (very rare) there's a little welcoming party for you over in General..

[Tensai]

...an IT Director running the entire IT department for a European company. ...

A knowledgeable experienced IT manager.... wasted on permiedom. Welcome into the wacky world of contracting.

[b0redom]

+1 Talk to QDOS or Lawspeed and have them review your contract for IR35ness and ammend if necessary.

[Badger]

Anyone else ever restructured themselves out of a job?

Welcome to contracting though.

[oracleslave]

Don't assume you're IR35 caught. Take the reasonable steps to ensure you aren't and then adjust your figures accordingly...

I concur

[ratewhore]

Don't assume you're IR35 caught. Take the reasonable steps to ensure you aren't and then adjust your figures accordingly...