Looking For Contract Rate to Permanent Salary Conversion Table

[peter_pilgrim]

Hi

I have been talking to a few agents about contract-to-perm.

Is there such a thing as an de-facto/official table that maps contract rates to equivalent starting salary?

300 pd =
350 pd =
400 pd =
450 pd =
500 pd =
550 pd =
600 pd =
650 pd =
700 pd =
750 pd =

Or is there some computation that takes in tax band rates etc., etc,

Ta! Really appreciate it.

[TheFaQQer]

The rough formula I have seen here is to multiply daily rate by 100 to get to approx annual salary.

Might be a little high or low in some cases but as a rough rule of thumb.

[MrRobin]

Obviously depends of many things like weeks worked, inside/outside IR35, expenses etc

There is a calculator here that can help you out

£300 per day = £71,034
£350 = £82,220

I'm sure you can do the rest

[MrRobin]

The rough formula I have seen here is to multiply daily rate by 100 to get to approx annual salary.

Might be a little high or low in some cases but as a rough rule of thumb.

Drivel. Only if you are inside IR35 and work less than half the year does that formula even approach anything like accurate

[TheFaQQer]

Drivel. Only if you are inside IR35 and work less than half the year does that formula even approach anything like accurate

Indeed it is.

Try again....

Hourly rate * 1000 is a good rule of thumb.

(I knew that if you multiplied a rate by a number with some zeros in it it mught be close. I thought as I typed my original post that that sounds really low...)

[TheFaQQer]

Obviously depends of many things like weeks worked, inside/outside IR35, expenses etc

There is a calculator here that can help you out

£300 per day = £71,034
£350 = £82,220

I'm sure you can do the rest

£300 a day to £71034 seems high to me.

365 days in a year. Minus 104 days for weekends. Minus 10 bank holidays. So a maximum of 251 working days in a year. £300 per day brings in a total of £75300 before tax and national insurance. To take home 94% of total billings is impressive.

[MrRobin]

Indeed it is.

Try again....

Hourly rate * 1000 is a good rule of thumb.

(I knew that if you multiplied a rate by a number with some zeros in it it mught be close. I thought as I typed my original post that that sounds really low...)

That's a bit better, but still pretty low, even for inside IR35... I've had agents tell me this formula before...

"so you are on 50 an hour, I have a perm position at salary of 50k... that's about the same as you take home now"

Erm nooo... I take home more than that after tax at the mo...

[MrRobin]

£300 a day to £71034 seems high to me.

365 days in a year. Minus 104 days for weekends. Minus 10 bank holidays. So a maximum of 251 working days in a year. £300 per day brings in a total of £75300 before tax and national insurance. To take home 94% of total billings is impressive.

You misunderstand, my good man. You need a permie salary of £71034k (taking home £47,500) for it to be equal to what you would take home as a contractor on £300p/d, working 44 weeks a year, outside IR35.

[rocktronAMP]

How about the reverse calculation or conversion?
For me this is definitely more interesting. Given an average 220 per days in work what would be the matching daily rate for these figures

£70k = ?, £80k = ?, £90k = ?, £100k = ?, £110k = ?

[MrRobin]

How about the reverse calculation or conversion?

You can find that calculator on the same site. Contractor Calculator

70k = £300 / day (£401 outside IR35)
80k = £356 / day (£450)

etc.