Trying to get rough comparison of day rate to Perm salary

[DaveB]

1200 for the accountant and the rest as divs to the wife for all her office based services.

You dont pay Divi's in return for services, thats what a salary is for.

[malvolio]

Ok so in other words you have 1200 admin costs and the rest is tax fiddle

Wait till NLUK gets here to ask you if your missus really does £18k worth of office services

The actual difference is the cost of employement of a permie vs the company income needed to generate the same net income to the individual. On top of salary you have to factor in list of things, including employers taxes, lost pay due to holidays and sickness and bench time, assorted insurances, assorted expenses, training, pension provision and the rest of the things that permies get bundled in. Get to more senior roles where full fat BUPA and company cars come into play and the overheads go up even more.

All of which is actually pretty academic in reality. Clients will pay what the market is paying for similar roles in the same industry in the same area. You can only name your rate if you have something exceptional to sell or have a fighting chance of saving the client more than you cost them, and even then you will be constrained by the end-client's budget.

[JamJarST]

1200 for the accountant and the rest as divs to the wife for all her office based services.

Ok so in other words you have 1200 admin costs and the rest is tax fiddle

Wait till NLUK gets here to ask you if your missus really does £18k worth of office services

[Scrag Meister]

You pay £20 grand a year on accountants and admin?!?!?

1200 for the accountant and the rest as divs to the wife for all her office based services.

[JamJarST]

£45000 include employers contributions is around 54 grand

Now add on 20 grand for admin and benefits roughly (this is what a contractor has to spend on "stuff" like the acountant)
Now divide by 230 gives around £320 pre day.

Pitch around 300-400. 350 wouldn't be a bad rate to offer.

At the end of the day the market rate determines what you should pay, ie. contractor and permie adverts should bring in the same quality of CV. Try an advert at the low end (300) and see what interest there is.

You pay £20 grand a year on accountants and admin?!?!?

[Spanishman]

Thank you all for such a prompt response. There are lots of variables to consider and since I am more accustomed to quoting annual permanent salaries then a rough guide is useful to have

[javadude]

What planet are you on??! £630/day = £45,000? No way...

Oops maths was wrong in turning the equation round. Don't tell my customer my maths is this bad on a Tuesday afternoon :-) Meant 2000 so 630 would give 157,500.

[malvolio]

£45000 include employers contributions is around 54 grand

Now add on 20 grand for admin and benefits roughly (this is what a contractor has to spend on "stuff" like the acountant)

Now divide by 230 gives around £320 pre day.

Pitch around 300-400. 350 wouldn't be a bad rate to offer.

At the end of the day the market rate determines what you should pay, ie. contractor and permie adverts should bring in the same quality of CV. Try an advert at the low end (300) and see what interest there is.

Or (45,000 / 1000) = 45. (45 * 8) = 360 per day.

WIWIS...

[BlasterBates]

£45000 include employers contributions is around 54 grand

Now add on 20 grand for admin and benefits roughly (this is what a contractor has to spend on "stuff" like the acountant)

Now divide by 230 gives around £320 pre day.

Pitch around 300-400. 350 wouldn't be a bad rate to offer.

At the end of the day the market rate determines what you should pay, ie. contractor and permie adverts should bring in the same quality of CV. Try an advert at the low end (300) and see what interest there is.

[Scrag Meister]

Let's not start that again. The 1000 figure has held for a long time now.

WMS

Assuming 8 hour day, 630/8=78.75ph.
Therefore 78.75 * 1000 = £78750 pa

As Mal said its an estimate, not an exact science.

Would take some catching up with the £144k earned on a £630pd contract over a 46 week year. So make sure they are aware of the "benefits".

[MrRobin]

Not this question again!! You're right, there are lots of variables. So many that a simple conversion factor is not really realistic...

However...

If say more like salary/500 equals hourly rate.

What planet are you on??! £630/day = £45,000? No way...

[malvolio]

If say more like salary/500 equals hourly rate.

Let's not start that again. The 1000 figure has held for a long time now.

[javadude]

If say more like salary/500 equals hourly rate.

[malvolio]

But as a rough rule of thumb, salary / 1000 gives an hourly rate.

[Spanishman]

First post so apologies if in the wrong place. As an agency we normally work on permanent opportunities but a recent project has engaged us with a number of contractors. I am trying to get an approximate Permanent Salary comparison for somebody currently on a £630 day rate. I know there are lots of variables but even a shot in the dark is better than where I am now Thank you all.