Question from a newbie

**Troll** · 27 February 2007, 21:32

I'm sure similar questions have been asked before

.. ad nauseum

but its always nice to intro yourself a bit

... as someone who can't be arsed to do a search

**oraclesmith** · 27 February 2007, 21:46

Interview <> job.

If you're on that sort of money as a permie, you must know how much you're currently taking home. If you pump the contract rate into a contractor calculator you can figure out how much you might take home.

There are loads of factors - whether you can keep getting contracts, how much you want to pay into a pension, how much you want company perks, whether you might be deemed employed (IR35), whether you want long breaks or want the money, whether you actually want to run your own company etc, etc, etc. If you contract at that rate, that's a whole load of money so if you don't need it yourself, you could use it to do something creative with a limited company - eg. employ someone.

Give us some more info, we're curious.

**Gonzo** · 27 February 2007, 21:50

Originally posted by IH33

Hi All

Been reading the boards for a while, need a bit of advice. I'm sure similar questions have been asked before but its always nice to intro yourself a bit

Basically I'm currently in a perm role at - looking to move on for a few reasons. An agent has set me up for an interview for a 6 month contract role paying £550/day, and another has set me up an interview for a perm role paying £80k+. Now I'm on a months notice, but the agent has assured me that the contract client will wait, which I'm a little wary of...

Now one of the main reasons I'm interested in contracting is basically the tax benefits. But then again, the £80k permie role includes a great package. Bit unsure as to which path to take, can anyone enlighten me on the best way to go with some valid reasons if poss!

For the record, both roles are similar and working in the same industry sector.

Thanks a lot!

IH

If you are going to have a successful contracting career you need to have the right mind-set. That you are asking this question suggests to me that you don't.

But, responding to your question on its own terms, the general rule of thumb is that you divide the annual permie salary by 1000 to get the equivalent hourly rate that you would need as a contractor. (Actually, that's Malvolio's rule of thumb but he always gets it wrong by a factor of ten).

In this case, £80,000 salary would equate to £80 and hour or £640 a day, so if you want to think of it on a purely financial basis, then the permie job is better.

I think that all the regulars on here would tell you that there is far more important things to contracting than the money (but it is nice when you have a good year

)

**IH33** · 27 February 2007, 22:09

Hi everyone, thanks for the great replies

Basically with my situation - money is the main drive (isn't it for most people? :P). I've not been contracting in the past, hence the questions (yeah yeah, another permie trying to go contract - sorry!). A friend is contracting on similar rates on offer to me and says he takes home a fair amount (well, more than what I take home after Mr Blair takes his cut!).

I have 2 telephone interviews set up as I mentioned earlier (1 is tomorrow!) and the other towards the end of the week - I guess the picture will become clearer once I actually speak to the clients themselves. Just out of interest for the agents on here - when you have a candidate on a months notice, how many clients do you have that will actually wait that long??? (for contracts that is).

Thanks again
IH

**Sockpuppet** · 27 February 2007, 23:08

I'd take the contract.

At 6 months its £99,000. Say even if you are IR35 work six months, take 6 off and be happy.

**Francko** · 27 February 2007, 23:38

Originally posted by Gonzo

If you are going to have a successful contracting career you need to have the right mind-set. That you are asking this question suggests to me that you don't.

Sorry but I don't agree with this attitude. What's the point? He has just spent a couple of minutes asking for opinions. It doesn't mean that if you listen to somebody else experience you are not a risk taker or uncapable to stand on your feet. Indeed, I see it as a note of intelligence.

Originally posted by Gonzo

In this case, £80,000 salary would equate to £80 and hour or £640 a day, so if you want to think of it on a purely financial basis, then the permie job is better

I use to agree with this rule, not any longer. Indeed as permie you tend to spend all your salary lulled by a false sense of security while your a55 is on the line just as much as a contractor. And in reality if you are a top paid permie you are probably the first to go. Huh, and let's not forget that every company will believe that you don't deserve to have a personal life because you are one of the highest paid permie in the lot, so expect to be backstabbed by most of your colleagues and be sent to anywhere else in the world just for pleasure.

**Paddy** · 28 February 2007, 09:55

“Basically I'm currently in a perm role”.

That tells a lot. If you are in the 80k band you would not call your position a “role”. You are obviously a Walter Mitty character and if we divide your figures by two or three it may show reality.

**hugebrain** · 28 February 2007, 10:24

Originally posted by IH33

Hi All

Been reading the boards for a while, need a bit of advice. I'm sure similar questions have been asked before but its always nice to intro yourself a bit

Basically I'm currently in a perm role at - looking to move on for a few reasons. An agent has set me up for an interview for a 6 month contract role paying £550/day, and another has set me up an interview for a perm role paying £80k+. Now I'm on a months notice, but the agent has assured me that the contract client will wait, which I'm a little wary of...

Now one of the main reasons I'm interested in contracting is basically the tax benefits. But then again, the £80k permie role includes a great package. Bit unsure as to which path to take, can anyone enlighten me on the best way to go with some valid reasons if poss!

For the record, both roles are similar and working in the same industry sector.

Thanks a lot!

IH

I definitely don't think you should take the contract role. Maybe not the the permanent one either. Computing has no future, why not try doing something like dry cleaning instead?

HTH. eom.

I can't remember if this is Catbert's or Ratbert's advice, but either way it should reduce the competition for us and increase the competition between dry cleaners, leading to lower suit cleaning prices. A win-win. Remember this next time the Newbies ask for help.

**Francko** · 28 February 2007, 10:28

Originally posted by hugebrain

I definitely don't think you should take the contract role. Maybe not the the permanent one either. Computing has no future, why not try doing something like dry cleaning instead?

Dry cleaning will be outsourced too. Clothes will be shipped in huge cargos and sent back 2 days later cleaned. All this at cheaper prices.

Question from a newbie