Reply to: Permie or contractor, that is the question!

[MarillionFan]

"£60k does not sound that much, though to be fair that is a lot more than I earned when I was a permie " - ATW

This should read

"£6k does not sound that much, though to be fair that is a lot more than I earned when I was a permie "

[sasguru]

I know...just for a change ...Im going to slag someone off


sasguru.

Good idea. How's your bedsit nowadays Andyw? Cleaned up all the used Kleenex yet?

[Andyw]

I know...just for a change ...Im going to slag someone off


sasguru.

[Francko]

Have you ever been a contractor, Francko, or is this empty theorising a.k.a. Atw?

3 years and a half (not in the good times unfortunately).

[sasguru]

I do know as I know there are also other expenses like accountants and administration. Also delays in the payments, sometimes you have to chase up the agents, sometimes you have to wait the next month for the payment to reach your bank account. Travel expenses, sure, but not everybody is willing to take up contracts everywhere and be able to live 5 days a week away from home. In all, I wouldn't consider this as a perk but part of a normal business workflow. That's why I do believe that the gross income from a contract should be substantially more than what you get from a permanent job. Whether you can maximise this income by leveraging taxes instruments or not should not be taken into consideration when comparing the incomes. It's an extra reward for your business acumen, it should not be considered part of the package.

Have you ever been a contractor, Francko, or is this empty theorising a.k.a. Atw?

[Francko]

Franco, you do realise that a contractor operating a limited outside of IR35 (which is not that difficult with a small amount of effort) on £90K will not be taking home what a permie takes home on a £90K salary.

And don't forget all the travel expenses are not from taxed income either.

HTH

I do know as I know there are also other expenses like accountants and administration. Also delays in the payments, sometimes you have to chase up the agents, sometimes you have to wait the next month for the payment to reach your bank account. Travel expenses, sure, but not everybody is willing to take up contracts everywhere and be able to live 5 days a week away from home. In all, I wouldn't consider this as a perk but part of a normal business workflow. That's why I do believe that the gross income from a contract should be substantially more than what you get from a permanent job. Whether you can maximise this income by leveraging taxes instruments or not should not be taken into consideration when comparing the incomes. It's an extra reward for your business acumen, it should not be considered part of the package.

[GreenerGrass]

"£60K (that means take home £30K)"

More like 40k.

http://www.listentotaxman.com/index.php

[DimPrawn]

9k - you probably work 10 months including 1 months for holiday and 1 month on average every year to find the next contract would make 90k gross a year on average. 60k +20k bonus +10k benefits. Et voila'. The equation is solved (at least on a financial ground).

Franco, you do realise that a contractor operating a limited outside of IR35 (which is not that difficult with a small amount of effort) on £90K will not be taking home what a permie takes home on a £90K salary.

And don't forget all the travel expenses are not from taxed income either.

HTH

[Francko]

Yes. Permie is best.

Leave the contracts to the professionals and business men I say.

Not to the ones who have the same income as a permie.

[_V_]

Yes. Permie is best.

Leave the contracts to the professionals and business men I say.

[Francko]

£60K (that means take home £30K)
Pension means nothing unless you are in it a long time and it's final salary based.
BUPA cost about £500 pa. Whoopeee
Company Skoda, well if that's something to boast about, god knows what you were earning as a contractor.

Well done, looks like you've hit the big time.



Now, where did I put my last monthly invoice for £9K......

9k - you probably work 10 months including 1 months for holiday and 1 month on average every year to find the next contract would make 90k gross a year on average. 60k +20k bonus +10k benefits. Et voila'. The equation is solved (at least on a financial ground).

[_V_]

The great thing about contracting is taking 3 months off to tour interesting countries and meet new people.

The only way you can do that as a permie is in the army and even then you have to kill them.

[ChimpMaster]

Who the hell wants to work as a permie....tulip wages....diversity courses, office politics, 'You work hard all year and the bonuses will be great' lies

Ah, the memories....

[Ardesco]

Who the hell wants to work as a permie....tulip wages....diversity courses, office politics, 'You work hard all year and the bonuses will be great' lies

So why are you working as a permie again Andyw ???

[Andyw]

Who the hell wants to work as a permie....tulip wages....diversity courses, office politics, 'You work hard all year and the bonuses will be great' lies