Daily Rate Vs Permie Money

[d000hg]

I used to think 500 was great. Now it is kind of average but I don't see much more for my current skillset.

You poor babbie. How do you cope?

[FarmerPalmer]

I suspect that they will offer hourly rate * 1000

i.e. Daily rate * 125

[Sally BFCA]

You can download a comparison tool from our homepage on our website that will compare PAYE, Self-employed, Umbrella, Ltd company inside and outside IR35

[ookook]

Never understood some of the permie vs contractor rules that are frequently referred to here - I tend to calc it as:

Day Rate (500) x 5 (week) x 45 (2 weeks bank hols / 4 weeks hols / 1 week sick) = 112,500

* 0.8 to reflect losing 20% to Corp tax = 90,000

Personal Income = £40,000 (without breaching income tax bracket)

Money remaining in Company = £50,000

Additional entreprenuers tax on company money once company closed @ 10% = £5000

So £500 pd = approx £40,000 pa personal income and another £45,000 deferred income

Obvioulsy theres a million things to consider, expenses, NIC's, NI, whatever salary you pay yourself, time on the bench, how much over the lower tax bracket you go, how much hols you want, pension contributions for tax relief etc etc But this rough formula has held true for me for the last 3 years.

Using the salary calculator above:

£100,000 permie @ 10% pension contribution = Take Home £59,310.40

Plus all the trimmings, hols, sick, pension matching, shares etc etc

Since you're not likely to be getting 100,000 permie without being in a very strong position re: perks you just need to readjust for whatever salary they offered

So I weigh it up like that - as a 35yr old with no kids, contracting wins every time...

[LegendsWear7]

For 500gbp/day .... how is that as a perm ?

Those calculators take no account of hols, pension, promotion, training, sick etc.


I used to think 500 was great. Now it is kind of average but I don't see much more for my current skillset.

[Moscow Mule]

Is it this one??

http://www.thesalarycalculator.co.uk/salary.php

[BlackenedBiker]

Theres a handy paye calculator on the internet somwhere, that will give you the takehome. Compare it to what you get now, decide?

Is it this one??

[Moscow Mule]

Theres a handy paye calculator on the internet somwhere, that will give you the takehome. Compare it to what you get now, decide?

[BlackenedBiker]

Posted here recently about the Clientco offering me a permie position:

Now they have come back with a firmed up offer.

Just need to work out what their offer is worth in Contractor terms

All advice appreciated thanks