Reply to: £65k perm salary , £350 daily rate - Worth moving into contracting ?

[d000hg]

£65k is pretty cushy. Are you looking to leave for a specific contract - will it even be there by the time you're out of notice period?

What do you do - are you sure £350/day is right?

[rd409]

When I jumped into the big bad world of independence I had decided that the business would have to generate double in net profit compared to my take-home salary. This allows for loss of all benefits and time when there is no work for the business.

In your situation this would mean a daily rate of ~£550. I would not settle for £350 in your position.

All in all, you need to draw a line at which you will personally be happy.

Chances are the original contract is in the region of 475-525, but because OP is a newbie, the agent is taking a massive cut.

For OP, if you fancy, jump in. I took a massive leap when starting out, and have more than doubled my rate in the first 2 years. Once you are in the game, you will learn quickly.

[mobi]

It is worth mentioning here there are no permanent roles any more - either contract and bit more long term contract

In a way now they mention MPG for urban and extra urban (rather than city and motorway).

I did contracting sometime back and then managed to get a permie role near to my home which I took. Then after 3 years, last month they handed out redundancy notice

Want to go back to contract again.

[TheFaQQer]

Both 475 and 550 are not worth leaving £100k for, however if you like contracting then it's worth leaving for less than that.

Contractor Calculator, outside IR35 has £475 as equivalent to £117k, based on working 220 days a year.

Which is where all the calculators fall down - they look great if you guarantee working all year, and you want to do that.

[TheFaQQer]

Both 475 and 550 are not worth leaving £100k for, however if you like contracting then it's worth leaving for less than that.

This.

One of the contractors I work with went permie with the client a year back and moved from a rate in excess of £580 (not sure of the exact figure, but I know where the cut-off would be) to £100k permie with a decent package.

If it was only about the money, there's no way I'd walk from £100k onto £475 a day.

[dty]

Both 475 and 550 are not worth leaving £100k for, however if you like contracting then it's worth leaving for less than that.

So people keep telling me.

£100k was basic so benefits were on top. 3% pension, healthcare, not much else.

I reckon my take home pay (on the £550) will be approaching 50% more. I don't need the healthcare as I've had myself + kids added to wife's company policy (so she's paying! Sweet!), and I can easily buy pension with the extra.

Only potential downside is long term sickness (+ bench time, of course) and I can insure against the former.

[NorthWestPerm2Contr]

Is now a good time to mention that I moved from £100k to £475/day a month or so ago? Next gig lined up at £550. I still think it's financially worth it before considering the other benefits.

Both 475 and 550 are not worth leaving £100k for, however if you like contracting then it's worth leaving for less than that.

[ChimpMaster]

Is now a good time to mention that I moved from £100k to £475/day a month or so ago? Next gig lined up at £550. I still think it's financially worth it before considering the other benefits.

Not sure I see the case here, financially.

I left a £100k package job 10 years ago and went for a £625/day contract. The motivation was not entirely financial - more that I didn't want to be someone else's b1tch, and working for a consultancy meant I was just that and had to travel and work wherever I was told to. The last straw was when I had just got married and then bought a house, only to be told by the somewhat ignorant consulting director that I would have to go work up North (200 miles from home) for a year.

So it's not just about the money, and the money isn't always great, but the last few years of contracting for me have meant that I have been able to choose work (just about) within commuting distance of home and have spent a lot of time with my family - including a fair bit of working at home.... though as with NorthWestPerm2Contr I haven't taken much time off during my contracting career.

[Bluenose]

I would definitely be working those numbers on a 10 month year. Possibly even less for a newbie.

Sage words.

As another forum member also said previously, first contract is easy to get. It's the second contract at a different client which is the challenge. I had a fourth month break between first and second contracts (market was truly awful Q2 2012 and I refused to take a pay cut). I am happy to say though that the advice given here generally rang true and going into my fifth year, I am now working on my fourth client with what seems to be an average of a 2 month gap between contracts.

I really enjoy these breaks but it does demonstrate that even with alot of contacts, you still need to plan to work for only 10 months per year.

At £350/pd though unless I was in my early 20's and doing a house share in Clapham, I would not be working in London, I would be working and living up North. I only work in London as the rates can't be matched elsewhere.

Working outside of London and getting an express train in is a nice notion, until you look at the price of a season ticket and also look at how packed the trains are, especially on the more popular express routes.

[PurpleGorilla]

Where do you live at the moment? North doesn't even have to be that far - Luton or Bedford for example have some nice areas (joking aside) and the trains get into London Kings Cross in 35 minutes. House prices are still very reasonable compared to anywhere within or closer to the M25.

South west mate, near Bath.

[dty]

Is now a good time to mention that I moved from £100k to £475/day a month or so ago? Next gig lined up at £550. I still think it's financially worth it before considering the other benefits.

[ChimpMaster]

I do sometimes think about it. Went to uni up north. Some beautiful countryside. I'm a bit of a southern softie now though!

Where do you live at the moment? North doesn't even have to be that far - Luton or Bedford for example have some nice areas (joking aside) and the trains get into London Kings Cross in 35 minutes. House prices are still very reasonable compared to anywhere within or closer to the M25.

[PurpleGorilla]

Move north. With a reasonable skillset the rates aren't much different and the prices sensible.....

I do sometimes think about it. Went to uni up north. Some beautiful countryside. I'm a bit of a southern softie now though!

[eek]

I'm new to this contracting game and still trying to find the right balance. On the one hand there is the making the hay whilst the sun shines, and building the war chest up pressure. On the other, the long term effect of work work work can be destructive.

Does anyone else feel the pressure of the housing market? What does it take these days to get a reasonable family home FFS! That's the biggest pressure I feel, trying to save for a decent family house for the future...

Move north. With a reasonable skillset the rates aren't much different and the prices sensible.....

[PurpleGorilla]

I can't take it when I look at the day rate x days off. If it is between contracts then it doesn't affect me as I don't feel I am "losing" anything. I have 6 working days off in July but I am considering cancelling that when I look at the day rate multiplied by 6.

I'm new to this contracting game and still trying to find the right balance. On the one hand there is the making the hay whilst the sun shines, and building the war chest up pressure. On the other, the long term effect of work work work can be destructive.

Does anyone else feel the pressure of the housing market? What does it take these days to get a reasonable family home FFS! That's the biggest pressure I feel, trying to save for a decent family house for the future...