Newbie Perm to contract question...

[Angrybunny]

You would then have to consider sickness (you don't get paid for this as a contractor) umbrella fees or accountancy fees, PI Insurance, EL/PL (arguably), Legal Expenses insurance fees, permanent health insurance (do you currently get this as a permie?), pension, Death In service life insurance.

Thanks for the reply, some things I hadn't considered.

[Hex]

I have already read the first timers guides. The calculators (here and the other site) suggest 350 a day is equivalent to 60k a year.

I am really looking for experienced contractor’s opinions if they think that is realistic.
It’s all good and well reading articles and using calculators but it’s also good to hear from the horses mouth too, so to speak.

AngryBunny

It depends on your definition of equivalent. It's just maths and a bit of knowledge of income tax and ni rates that can come up with an equivalent financial comparison between £350/day and a permi salary. That's what those calculators do. I can see how £350/day inside Ir35 would get about the same net of taxes as a 60K salary if you presume all other factors are the same and that you work 46 weeks of the years, 5 days a week as a contractor.

You would then have to consider sickness (you don't get paid for this as a contractor) umbrella fees or accountancy fees, PI Insurance, EL/PL (arguably), Legal Expenses insurance fees, permanent health insurance (do you currently get this as a permie?), pension, Death In service life insurance. And all of this presumes that you are as secure in a contract as in a permie job, and doesn't consider bench time.

I would say £60K from £350/day is a bit optimisitic but if you are in a field where you are confident about how quickly you can get new contracts then maybe it is "equivalent". It is hard to say as contracting and being in permanent employment are not the same.

[Angrybunny]

Forget the money side. Do some proper investigation in to the amount of work available and do you have the skill set. If you CAN get a role THEN you can look at the value attached to it.

Makes a lot of sense.

I'm a business analyst (working with ERP / CRM ) but I also do Qlikview (BI tool) development.
The position is for Qlikview.

I'm confident I have the experience and skills to get a BA job similar to what I do now.
But I just fancy doing more Qlikview development even though my skills are not amazing at it.

Most of the Qlikview contract positions require more skill then I have. So I think I'll go for the perm position to get experience and don’t have to worry about being on the bench!
If I like it and get good I can try contracting at a higher rate and there will be more opportunity.

Otherwise I can always go back to being a BA.

AngryBunny

[Angrybunny]

I have already read the first timers guides. The calculators (here and the other site) suggest 350 a day is equivalent to 60k a year.

I am really looking for experienced contractor’s opinions if they think that is realistic.
It’s all good and well reading articles and using calculators but it’s also good to hear from the horses mouth too, so to speak.

AngryBunny

[northernladuk]

As the mod said try the calculations.

I also suggest you read the first timers guides and do a search on this site for threads mentioning the word "bench", then read them.

As SueEllen says take careful note of the word bench. For me contracting is a workstyle that suits me and happens to pay well in good times which props up the bad times. I wouldn't have come contracting for cash alone. Not all contracts are good contracts despite the rate.

Have a look at the thread Bench and Panic linked below for the flip side view.
http://forums.contractoruk.com/busin...nch-panic.html

£41k isn't a bad crack so you must be in a decent role now. You don't say what it is. The best thing for you to do is not look at the rate that equates to what you want. You need to look around and see what rate is being paid for people with your skills. You could want £800 a day but if your skills don't command it you are going to be very unhappy. If you are in a flat skill set, work is going to be a bit few and far between. DO NOT look at the top rates for your skill set and have dollars spinning in your eyes. The top rates are for highly skilled experienced contractors not new guys. Also you will find what they advertise and what they offer you are very different numbers. Most of us have fallen foul of this on numerous occasions I am sure.

Forget the money side. Do some proper investigation in to the amount of work available and do you have the skill set. If you CAN get a role THEN you can look at the value attached to it.

You also need a good warchest to suffer the time on the bench looking for your first few roles.

Is this Perm or Contract job at the same place? I would question being out of IR35 if it is. If they are looking for both I would argue they intend to treat you both the same which will put you firmly inside IR35 so kibosh all the calcs you have done. Be very careful. It isn't the contract being out of IR35 that is important it is the working conditions. If the working conditions are permie style, the only diff is are you wokring for them or for yourself you might be in for a nasty surprise.

[SueEllen]

As the mod said try the calculations.

I also suggest you read the first timers guides and do a search on this site for threads mentioning the word "bench", then read them.

[Angrybunny]

Hello,

Newbie here please be gentle

I am currently working in a perm position and am considering a roll at a consultancy to go either contract or perm.
I'm on 41k basic, when I add up other benefits my income is closer to 50k a year.

My motivations for leaving are financial (I'd like to take home 1k more a month) and also be in a more challenging / interesting role.

That equates to either a 60k a year job or 350 contracting a day (inside IR35).


Does the 350 a day sound about right if I want to match 60k a year perm? I’ve read some posts here which suggest 350 a day is equivalent of a lot less so I’m a little confused to be honest.

AngryBunny


[Mod] Have you tried the calculators on this site? http://www.contractoruk.com/calculators/ [/Mod]