Contract v perm advice

[kermitt]

well they have offered £50k which considering I am operating outside IR35 at the mo is too much of a cut to consider even doing the same job so have declined.

[Francko]

£320 daily = £40/hour = £40k permanent salary.

£55k is too good for this role as permie!

I prefer to calculate as such:

Contract: 320 x 200 = 64k a year

Then must add bonus, benefits and pension to the permie job and compare. I'd say 40k is a little too low unless the bonus/pension is fantastic. More like 47.5k would be a decent trade off. I agree that 55k sounds like a much better deal in any case, even if the rest of package is very low.

[mobi]

£320 daily = £40/hour = £40k permanent salary.

£55k is too good for this role as permie!

[SueEllen]

Do you really think £55k is realistic perm salary for your role? I'd be surprised if they didn't pitch in a bit lower, because of the "benefits of being permanent"

Like making you redundant within two years.

[oversteer]

Do you really think £55k is realistic perm salary for your role? I'd be surprised if they didn't pitch in a bit lower, because of the "benefits of being permanent"

[kermitt]

Just to clarify...to apply for and accept a staff position is bad news where IR35 is concerned?

[kermitt]

Excellent many thanks.

[AnthonyQuinn]

Nearly finished my 2nd contract where I have had a 6 month contract at a place where I worked as an employee a couple of years ago.
Thing is they are reluctant to extend the contract on the basis that they want to take me on as permanent. If they do extend its likely it will only be to train my replacement as they are looking for another two employees to add to our current group of 3.

Now I have just been told if I want the job I need to apply through HR for it. I don't see any current potential for career advancement or additional training/experience as its all stuff I have done before. Just seems like they are taking the piss and wanting me to do the same work for potentially less money.

In case you hadnt noticed this has been a general trend over the last 2 years. If the role isnt temporary they would be foolish to hire a contractor for a potentially permanent role. (That doesnt mean such foolish people dont exist. I have seen contractors being in the same contract for 20 years). If a role is expected to last > 2 years then expenses are more if you hire a contractor. (Especially when the end client doesnt charge VAT to its customers).

[Bunk]

Just seems like they are taking the piss and wanting me to do the same work for potentially less money.

Always remember Dilbert

ps. Yes, I know that's not the original text, but it's still apt.

[RichardCranium]

Thing is they are reluctant to extend the contract on the basis that they want to take me on as permanent.

"Thanks for the offer, I'm flattered, but there's this thing called IR35. The government will make me pay loads of back tax for the past six months. I'd need a huge lump sum to cover that to switch to permie. And that lump sum would also need to include the tax they'd put on that. About £10k should cover it. I don't think it's worth the risk, shall we leave things as they are?"

Apparently they are very keen to retain me but the only other option I have is to go back to contracting in Aberdeen and earn better money again as my girlfriend is training to be a nurse we are relying on my sole income (part of the reason why I went contracting in the first place).

"I have now made financial arrangements based on being a contractor, for example to do with supporting my partner during her training and I still have to pay my accountant and file paperwork with the government. If I stop contracting I'll have to change those arrangements and it would cause me so much hassle it would be easier for me to go contracting elsewhere. Can't we just leave things as they are?"

Now I have just been told if I want the job I need to apply through HR for it.

"Since you've written the job description and person spec, you may as well advertise it. But would you like me to stay on to do a handover to my replacement? On the current terms, of course."

Just seems like they are taking the piss and wanting me to do the same work for potentially less money.

Yep.

"Also, for me to go permanent I shall need to see in my permanent contract a commitment from you for 2 weeks relevant training per year, an overtime rate, 28 days paid leave, 17% pension contribution, travel expenses for the first six months from home to work and a blowjob from your wife every four weeks. And a new comfy chair. Pal."

[kermitt]

Bump.

[kermitt]

Thanks have sent a few applications recently. Think they are just relying on the fact that the travelling was not ideal for me and that I will stay for an easy life.

[portseven]

Refuse the permie role, if they really wanted you they would keep you on permie or contract.

In the meantime warm up the Aberdeen role, just in case.

[kermitt]

Nearly finished my 2nd contract where I have had a 6 month contract at a place where I worked as an employee a couple of years ago.
Thing is they are reluctant to extend the contract on the basis that they want to take me on as permanent. If they do extend its likely it will only be to train my replacement as they are looking for another two employees to add to our current group of 3.

Anyway my rate is £320 daily outside IR35. Am expecting them to offer circa £55k plus pension, medical etc but that seems like taking a pay cut to me for doing the same job as I have been for the last few months. Have already taken a cut to come back here but it meant significantly less travelling than before so the previous cost of fuel and lodgings has balanced it out.

Apparently they are very keen to retain me but the only other option I have is to go back to contracting in Aberdeen and earn better money again as my girlfriend is training to be a nurse we are relying on my sole income (part of the reason why I went contracting in the first place).

Now I have just been told if I want the job I need to apply through HR for it. I don't see any current potential for career advancement or additional training/experience as its all stuff I have done before. Just seems like they are taking the piss and wanting me to do the same work for potentially less money.