Reply to: Weighing up an IT Contract opportunity vs Perm

[northernladuk]

Sorry if I'm being dumb here, but what happens next April, is there a change in the law or something that I've missed?

They want to extend IR35 reforms in to the private sector now they've done the public sector. We will be taxed as permies if we are inside, which is their plan.

Read 'the future of contracting' sub forum in the Accounting section.

[northernladuk]

What I meant by my family not helping me make this decision is well they all think it's a difficult choice and that I'm the only person who really knows what the correct decision is

I think that as well.

[indianabones]

Won't be insane come next April either thinking about it.

Sorry if I'm being dumb here, but what happens next April, is there a change in the law or something that I've missed?

[indianabones]

^^ WNLUKS
The sad part is this kind of thing happens.



While the figures look attractive don't be sucked in by them. All sorts of things can happen. The contract may not be as described, you may hate every minute of it and the only thing that keeps you going is the contract end date.

As I've seen in my most recent contract, decisions have been taken where people have been offered extensions, only to have them withdrawn at the very last minute as the company year end approache. I've seen similar things happen to people over the years with contract offers too.

You final comment was intriguing as family support is important. Perhaps it's worthwhile taking on board any of their concerns if that's what you're referring to with not sticking their neck out.

Thank you for the input.

I haven't got the offer for the contract role yet, but there is a strong chance I get it.

Assuming that I do get the offer, I'm currently 70-30 in favour of the perm position because of primarily the product it provides, it's far more interesting with a wider range of clients.

What I meant by my family not helping me make this decision is well they all think it's a difficult choice and that I'm the only person who really knows what the correct decision is.

[northernladuk]

Won't be insane come next April either thinking about it.

[ShandyDrinker]

Won't be insane if they bin you a week in and you are back to nothing.

^^ WNLUKS
The sad part is this kind of thing happens.

Bumping the thread as the situation is probably going to arise for me.

A brief summary of my situation:

Been out of work since Nov last year, it was a perm role.
Applying for months and months.
Finally received verbal offer for a perm role last Thursday at 53k.
Today had interview for a contract position and looks like there's a chance I will get offer at 525 p/d.
Contract is for an initial 6 months with a decent chance at extension or going perm.

I like both companies, but the perm one is better in terms of working with large global brands. The money from the contract role initially is insane, nothing like I've ever seen before.

I will be tossing and turning tonight over this one and the frustrating part is everyone close to me is not willing to stick their neck out.

While the figures look attractive don't be sucked in by them. All sorts of things can happen. The contract may not be as described, you may hate every minute of it and the only thing that keeps you going is the contract end date.

As I've seen in my most recent contract, decisions have been taken where people have been offered extensions, only to have them withdrawn at the very last minute as the company year end approache. I've seen similar things happen to people over the years with contract offers too.

You final comment was intriguing as family support is important. Perhaps it's worthwhile taking on board any of their concerns if that's what you're referring to with not sticking their neck out.

[northernladuk]

Won't be insane if they bin you a week in and you are back to nothing.

[indianabones]

Bumping the thread as the situation is probably going to arise for me.

A brief summary of my situation:

Been out of work since Nov last year, it was a perm role.
Applying for months and months.
Finally received verbal offer for a perm role last Thursday at 53k.
Today had interview for a contract position and looks like there's a chance I will get offer at 525 p/d.
Contract is for an initial 6 months with a decent chance at extension or going perm.

I like both companies, but the perm one is better in terms of working with large global brands. The money from the contract role initially is insane, nothing like I've ever seen before.

I will be tossing and turning tonight over this one and the frustrating part is everyone close to me is not willing to stick their neck out.

[northernladuk]

Well it can take 5 days to get your contract reviewed. Acceptance subject to contract check will give you a week at least.

[indianabones]

I may find myself in a similar situation early next week.

After numerous applications from late last year up until now, the phone and F2F interviews are streaming through.

My concern is that I might have to buy time for a perm position interview next week and with a possible contracting offer as early as Monday I don't know how I'll buy that time.

Sometimes it's easier if you don't have a choice and you only have the one offer.

[SueEllen]

Thank you for your advice

On further looking into it, I won’t have to declare myself within IR35.

After all deductions (pensions and student loans) my perm job comes to £3000 a month.

The contract role is likely to be ~£6700 a month (excluding pension if I take one up).

The contract role and company are notorious for long term contracts (financial sector) - and it wouldn’t surprise me if I end up there for a couple of years. It is starting to seem like the more attractive role.

The perm opportunity is very good mainly due to the perks of a final salary pension / I have little doubt in getting a perm job (I’ve actually had 5 offers in the past couple of months, with the 6th being the contract role). So I guess it’s the fact that a final salary pension job is almost non-existent!

Saying that, if I go into contracting, I could maybe get a couple of properties at least, effectively working as some pension.

You won't take home £6700 a month if due to expenses, building a war chest and being tax efficient.

Your take home will be the minimum you can live on which will be less than £3000 a month if you do it correctly.

[nucastle]

Thank you for your advice

On further looking into it, I won’t have to declare myself within IR35.

After all deductions (pensions and student loans) my perm job comes to £3000 a month.

The contract role is likely to be ~£6700 a month (excluding pension if I take one up).

The contract role and company are notorious for long term contracts (financial sector) - and it wouldn’t surprise me if I end up there for a couple of years. It is starting to seem like the more attractive role.

The perm opportunity is very good mainly due to the perks of a final salary pension / I have little doubt in getting a perm job (I’ve actually had 5 offers in the past couple of months, with the 6th being the contract role). So I guess it’s the fact that a final salary pension job is almost non-existent!

Saying that, if I go into contracting, I could maybe get a couple of properties at least, effectively working as some pension.

Any forward planning notions can go out of the window. I'm 10+ years in and regardless of the dates on the contract or any assumptions you might make, the only thing you can rely on in this day and age is that anything can happen. In your first year or two, concentrate on building up a war chest, not your financial obligations.

[1manshow]

Thank you for your advice

On further looking into it, I won’t have to declare myself within IR35.

After all deductions (pensions and student loans) my perm job comes to £3000 a month.

The contract role is likely to be ~£6700 a month (excluding pension if I take one up).

The contract role and company are notorious for long term contracts (financial sector) - and it wouldn’t surprise me if I end up there for a couple of years. It is starting to seem like the more attractive role.

The perm opportunity is very good mainly due to the perks of a final salary pension / I have little doubt in getting a perm job (I’ve actually had 5 offers in the past couple of months, with the 6th being the contract role). So I guess it’s the fact that a final salary pension job is almost non-existent!

Saying that, if I go into contracting, I could maybe get a couple of properties at least, effectively working as some pension.

[MrMarkyMark]

FTFY

Don't trust an agent. If you shake their hand, be sure to check your Patek is still firmly on your wrist and definitely count your fingers afterwards.

[fatboyslim]

is it that simple? the permie job you refuse isn't going to be on hold for you.

True.
Actually it seems I spoke too soon without properly reading his post, it seems OP is more in it for short term money to get into property ladder, in which case my advice was wrong, because if you like the perks of stable perm job, you will hate being contractor, and its risky to do it for short term, not worth the headache.