Permanent Offer

[cloudninja]

600 pd x 220 days = 132,000. Is 76% retention still possible? I haven't lived in the UK since before divi tax came in, so I've lost track.

Assuming 80k has some pension contribution on top, it's not as much of a drop as you make out, although it is a drop. Not a bad move financially given the market.

what he said

[NotAllThere]

Was the bonus another £50K?

IIRC about 10K. Of course, back then, the cost of living wasn't so high, and the pound had some strength.

[_V_]

I went from £640/day to £50k + car + fuel + bupa + bonus back in 2000. It was fine.

Was the bonus another £50K?

[NotAllThere]

I am awaiting confirmation of permanent role offer, which should come today, atbw...

Sticking point has been salary which we are now agreeing -I had been aiming for £80k basic + blue chip package in a good working environment (I know previous colleagues there) vs £600 / day outside IR35.

Sounds about right currently?

I went from £640/day to £50k + car + fuel + bupa + bonus back in 2000. It was fine.

[fullyautomatix]

600£ per day is a better option without question, but the point is, how many such contracts are available these days especially with IR35 looming ? The market might pick up next year but by the time it picks up, it will be the IR35 time again where the companies fear HMRC banging on their doors and point blank include everyone inside.

The main strategy currently would be to get into a top consultancy in a senior role and ride the next few years and see where it takes up all. Most companies are using consultancies now instead of Ltd company contractors.

Either way, its a difficult call and we could have done without a pandemic at the same time decimating any remaining options.

[_V_]

Thanks for coming back to my original question.

My current rate is £600 /day and the contract ends in a few days and so a choice of £0/day vs £80K. I was just checking if the £80k perm salary + benefits is reasonable, given the state of the market, the way contracting is heading to a slow death and also the fact that I am a single director of the limited company.

£80+K seems a lot better than £0K

You can always leave the perm job if by some miracle IT contracting re-appears as a viable way of earning a living.

[kaiser78]

I haven't read through this thread because there's a lot of "noise" here.

Is it actually a choice of £600/day vs £80K+ or is the reality now it is a choice of £0/day vs £80K+?


Because if you can still get those kind of contract rates you would be mad to take that kind of income drop and go permie.

I think people need to let go of what they could command pre-covid and pre-private-sector-IR35 rules.

Everything has changed and for the worse.

Thanks for coming back to my original question.

My current rate is £600 /day and the contract ends in a few days and so a choice of £0/day vs £80K. I was just checking if the £80k perm salary + benefits is reasonable, given the state of the market, the way contracting is heading to a slow death and also the fact that I am a single director of the limited company.

[_V_]

I am awaiting confirmation of permanent role offer, which should come today, atbw...

Sticking point has been salary which we are now agreeing -I had been aiming for £80k basic + blue chip package in a good working environment (I know previous colleagues there) vs £600 / day outside IR35.

Sounds about right currently?

I haven't read through this thread because there's a lot of "noise" here.

Is it actually a choice of £600/day vs £80K+ or is the reality now it is a choice of £0/day vs £80K+?


Because if you can still get those kind of contract rates you would be mad to take that kind of income drop and go permie.

I think people need to let go of what they could command pre-covid and pre-private-sector-IR35 rules.

Everything has changed and for the worse.

[Old Greg]

Thanks all, very insightful.

My current rate is £600 outside with contract is finishing soon. I am a single director so don't benefit from the joint director set up.

So I am figuring £80k permanent with good benefits (27 days hol, 10% pension cont + others) should secure me for the moment, having done the maths around income changes.

Seems reasonable given the market. Best of luck. And when contracting picks up again, you can always go back to it! The other thing people forget with permie jobs is annual pay progression, even if it's just cost of living.

[kaiser78]

Thanks all, very insightful.

My current rate is £600 outside with contract is finishing soon. I am a single director so don't benefit from the joint director set up.

So I am figuring £80k permanent with good benefits (27 days hol, 10% pension cont + others) should secure me for the moment, having done the maths around income changes.

[jayn200]

600 pd x 220 days = 132,000. Is 76% retention still possible? I haven't lived in the UK since before divi tax came in, so I've lost track.

Assuming 80k has some pension contribution on top, it's not as much of a drop as you make out, although it is a drop. Not a bad move financially given the market.

With a 2 director company you can take out 100k in salary and dividends and pay 5-6k in taxes... So around 95k and that's 123k pre corporate tax (plus expenses if any). Likely you will have a bit of retained earnings at the end of the year. 220 days is only if you are switching contracts in the year, probably half the people on here are on multi year contracts (not me I change often).

Anyway 100k was just meant to be nice round number, can use 95k but overall point is still valid. It's potentially a 40k drop in cash flow annually but obviously everyone's tax position is different.

[dsc]

Is the £600pd outside IR35 an offer you already have or just a rate you were able to get a year ago?

If it's the latter and you're not currently in contract, it's more like £80k perm vs £0 at the moment with a dead market.

[Old Greg]

Sounds about right for what? Seems like that's what the market says your skills are worth to a permie position but you're going to go from net 100k to net 55k annually so be prepared for that if you haven't already figured that out.

600 pd x 220 days = 132,000. Is 76% retention still possible? I haven't lived in the UK since before divi tax came in, so I've lost track.

Assuming 80k has some pension contribution on top, it's not as much of a drop as you make out, although it is a drop. Not a bad move financially given the market.

[jayn200]

Sounds about right for what? Seems like that's what the market says your skills are worth to a permie position but you're going to go from net 100k to net 55k annually so be prepared for that if you haven't already figured that out.

[kaiser78]

I am awaiting confirmation of permanent role offer, which should come today, atbw...

Sticking point has been salary which we are now agreeing -I had been aiming for £80k basic + blue chip package in a good working environment (I know previous colleagues there) vs £600 / day outside IR35.

Sounds about right currently?