First contract, should I leave full time employment?

[malvolio]

No need to view my sums with suspicion, unless I have worked it out wrong. I am currently on £40k, I have been offered a contract for £380 per day, I figured that would be around £80k per year if I take time off over Christmas and pay insurance and an accountant. My permanant job has offered me £60k, so clearly they have been under paying me.

It's a really tough decision, I know it's a risk to leave the security of permanant employment but it's also quite exciting. I just don't know what to do, I am going to try to stall things till Monday so I have got the weekend to decide.

Thanks everyone for your thoughts, much appreciated.

OK, for £40k £380 will give you pretty much the same net pay. Remember that you don't get paid for the year, only the days you work, that your contract is only as long as your notice period (in fact, probably not even that long most times), you will need to keep money back for Corporation Tax, employer's NICs, pension and SSP that you don't pay now as well as the basic operating costs you've already listed, and you need to save something for when you aren't in contract (if you work on seven months a year in paid work on average, you won't be far wrong; if you get more that's a bonus).

There's plenty of guides out there (the one at www.ipse.co.uk is quite useful) if you don't want to listen to people who do contracting for a living.

[Becksy]

I would go along with this. Some of the stuff and the phrases you are using show a lot more research and understanding is required.

Although it's a 12 month contract never assume it will last. Working a full year should be a bonus and not the norm. But as I said. I think you missing some basic understanding of contracting.

Thanks, I think you're right, I do need to understand it all a bit more. Maybe I should do a bit more home work before I take the leap.

[northernladuk]

On the evidence you have provided I am happy to informate you that I'd stick with your existing job.

I would go along with this. Some of the stuff and the phrases you are using show a lot more research and understanding is required.

Although it's a 12 month contract never assume it will last. Working a full year should be a bonus and not the norm. But as I said. I think you missing some basic understanding of contracting.

[Becksy]

If you're on £50k now (for example) you need £50 an hour minimum, or £400 a day, to take home the same net annual pay as a permie being paid 365 days a year and covering all the incidental costs. Contract rates are higher for a reason, and you will take home more usually, but they are rarely double the equivalent permie rate for the same kind of work. And 12 months work is only about 220 days pay if you don't take any time off (like the two weeks over Christmas when they send you home and don't pay you). So I view your sums with some suspicion.

If it's only about the money, or if you have any doubts, don't do it. Think of it like free fall parachuting: why leave a perfectly serviceable aeroplane for no good reason? Until, that is, you've done it and survived, then you want to keep doing it. But once you step out of the plane, getting back in to it before you hit the ground is a little tricky.

No need to view my sums with suspicion, unless I have worked it out wrong. I am currently on £40k, I have been offered a contract for £380 per day, I figured that would be around £80k per year if I take time off over Christmas and pay insurance and an accountant. My permanant job has offered me £60k, so clearly they have been under paying me.

It's a really tough decision, I know it's a risk to leave the security of permanant employment but it's also quite exciting. I just don't know what to do, I am going to try to stall things till Monday so I have got the weekend to decide.

Thanks everyone for your thoughts, much appreciated.

[Becksy]

Which one is it?

Both. I said I will be handing in my notice at the end of the week i.e. today once I have received and signed the contract with the new company.

[TheFaQQer]

I informed my boss that I had been offered another position and that I would be handing in my notice at the end of the week (I didn't want to hand in my notice until I had signed something). My boss has now come back with a counter offer saying that he will increase my pay, not by as much as I was offered in the contract but still a 50% increase and a change a role involving more travel (which is what I wanted). It has annoyed me because if he had offered this 3 months ago I would have biten his hand off but it has taken the threat of me leaving for anything to change.

It's not uncommon for a company to refuse a pay rise and then change their mind when they find out that you are going to leave because you have an offer. The two permanent roles I've been in have done the same "we can't pay you more now but might be able to offer you something next year" to be followed with "here's a big pay rise if you'll stay". In both situations I left because I'd already made my mind up to go, and was going to something bigger / better / different.

If you want to be contracting, and know exactly what you are getting into, then go for the contract anyway; if you only looked at contracting because you couldn't find a permie job, then take the permie offer now that you have what you wanted in the first place.

[I just need to test it]

On the evidence you have provided I am happy to informate you that I'd stick with your existing job.

[malvolio]

If you're on £50k now (for example) you need £50 an hour minimum, or £400 a day, to take home the same net annual pay as a permie being paid 365 days a year and covering all the incidental costs. Contract rates are higher for a reason, and you will take home more usually, but they are rarely double the equivalent permie rate for the same kind of work. And 12 months work is only about 220 days pay if you don't take any time off (like the two weeks over Christmas when they send you home and don't pay you). So I view your sums with some suspicion.

If it's only about the money, or if you have any doubts, don't do it. Think of it like free fall parachuting: why leave a perfectly serviceable aeroplane for no good reason? Until, that is, you've done it and survived, then you want to keep doing it. But once you step out of the plane, getting back in to it before you hit the ground is a little tricky.

[Batcher]

Hi all,

I am currently in full time employment, last July I asked for a pay rise and was informated that I was being paid market rate and therefore there was nothing that they could do. I therefore said that if they couldn't increase it I would be looking for another job. I have been continuously fobbed off for the last 3 months and in my frustration decided to look for another job. During my search I was contacted by an agency in regards to a contractor position. I had considered this to be an option before but I went for the interview all the same. I was successful and received an offer of a contract for 12 months. It is for a large company, however, I have read some horror stories about them not treating contractors particularly well. I have calculated my annual salary, including taking into account holiday, insurance, accountancy fees etc and I will be earning double my current salary.

I informed my boss that I had been offered another position and that I would be handing in my notice at the end of the week (I didn't want to hand in my notice until I had signed something). My boss has now come back with a counter offer saying that he will increase my pay, not by as much as I was offered in the contract but still a 50% increase and a change a role involving more travel (which is what I wanted). It has annoyed me because if he had offered this 3 months ago I would have biten his hand off but it has taken the threat of me leaving for anything to change.

I haven't signed anything yet with the new company but I am now starting to have doubts of leaving the security of full time employment including all the perks like pension contribution, health insurance, sick pay etc. However, the offer of doubling my income is very appealing.

Any thoughts would be most welcome.

Which one is it?

[Becksy]

Hi all,

I am currently in full time employment, last July I asked for a pay rise and was informated that I was being paid market rate and therefore there was nothing that they could do. I therefore said that if they couldn't increase it I would be looking for another job. I have been continuously fobbed off for the last 3 months and in my frustration decided to look for another job. During my search I was contacted by an agency in regards to a contractor position. I had considered this to be an option before but I went for the interview all the same. I was successful and received an offer of a contract for 12 months. It is for a large company, however, I have read some horror stories about them not treating contractors particularly well. I have calculated my annual salary, including taking into account holiday, insurance, accountancy fees etc and I will be earning double my current salary.

I informed my boss that I had been offered another position and that I would be handing in my notice at the end of the week (I didn't want to hand in my notice until I had signed something). My boss has now come back with a counter offer saying that he will increase my pay, not by as much as I was offered in the contract but still a 50% increase and a change a role involving more travel (which is what I wanted). It has annoyed me because if he had offered this 3 months ago I would have biten his hand off but it has taken the threat of me leaving for anything to change.

I haven't signed anything yet with the new company but I am now starting to have doubts of leaving the security of full time employment including all the perks like pension contribution, health insurance, sick pay etc. However, the offer of doubling my income is very appealing.

Any thoughts would be most welcome.