From contractor to permie

[contractor79]

Hi
I'm confident of getting a permie job down the road from where I'm currently contracting on a lucrative rate. It's not with the same company.

Having contracted non-stop for more than 2.5 years I have tens of thousands sitting in my company account as I never paid myself higher rate income. I rather like having a company, can I keep the company even though being a perm for someone else, though what best to do about the cash in there I don't know as I wouldn't need it once contracting. Could I put a substantial amount of it into a pension to achieve a zero profit hence no corporation tax, then take the rest out to spend on myself? As I can't rule out wanting to return into contracting in future at hopefully a higher rate after developing some more in a perm job.

Also the usual considerations are there- I think I could contract where I am well beyond my current contract end date at this lucrative rate so won't be easy to fall down permie salary and all the bs that comes with it once more. But I have grown attached to my location and have made good friends here in the last 2.5 years so the more I stay here the more I don't want to move and start all over.

Any advice appreciated, regards.

[TheBigYinJames]

Any advice appreciated, regards.

I did it once, and regretted it. Your status and dignity will take a nose dive.

[chris79]

I'm in the same boat mate, 2yrs into my contract with client and getting itchy feet, been looking at a move to perm only to break into another area I want to work in, but it means dropping a LOT in money. Trying to figure out if a small step back is a bigger step forward, but the way the market is right now perhaps it's better to use your spare time to STUDY and get certificates, then when you are 'rich' or debt free and home owner etc, move into the area you want. You may not get back on a lucrative deal so easily if you jack it in now!!

[contractor79]

thanks for both your responses, you clearly know the difficulty of this situation

yes in a permie job I would get to gain qualifications BUT status would take a nosedive and money would get tight I agree and that could be difficult to handle

however I take the point also about the troubled economic times ahead though not sure how much this will impact me

another option is to continue contracting with present client and maybe they will offer permie role in future after a few nice years of contracting first. I'm on my 5th contract extension there at present, so I'm already a permietractor (love that word!)

[chris79]

Just rake in the money whilst you can for now if the options are there, who knows what the future holds..

My plan is to do exactly that to a point where money is 'not a concern' giving me the freedom to then do EXACTLY what I want with no pressure.. (i.e. not having to grind a job for the sake of paying a mortgage etc).

Ultimately I want to be semi-retired (in the sense I can work as much or as little as I choose) by the age of 40 which is just over 10yrs away.

Everyone is different though, but if you're not paying higher rate tax why not grind out the money whilst you can and at the point it stops take a year to go travel the world off the back of a wage out your company up to the higher tax bracket?? Come back and carry on as normal etc.

[contractor79]

chris79, that's an appealing suggstion and being 29 as I guess you are then very achievable especially at present as I don't have wife, kids or mortgage to worry about

does make a lot of sense to rake it in now, but there does come a point that I'm fast approaching where the money is just numbers and if can't take it out to spend due to prudence, tax reasons etc. then it just appears pointless. Especially when emotional attachment to location grows.

still it's not a bad thing to interview for perm jobs in the area I guess so they have CV on file, they should understand if you're turning down the job because earning 3 or 4 times more in a contract...

but do some perm employers feel threatened by someone with a robust contracting experience or do they see them as very good value do you think?

one thing I'd miss is the autonomy in the contract job, perm job I would probably use my brain less and follow dull procedures instead of being innovative and dictating what needs doing to solve the problems

[NotAllThere]

Don't do it, you'll only regret it.

Many perm employees don't like contractors, especially during a downturn, as they think (rightly) as soon as things improve, you'll be off. Also, you're attitude is contractor, rather than wageslave, so they worry your face won't fit.

[BrilloPad]

Do you want to become like Wilmslow?

[TheBigYinJames]

I have been told point blank at a permie interview that as a contractor, he had no confidence that I wouldn't up sticks and go as soon as the market improved or I'd picked up a new skill. And he was absolutely correct, so top marks to him. A week later I got a decent contract and never looked back.

He was basically admitting that 'lifestyle' permies are more likely to stay out of inertia, and that was the sort of person he needed.

[LittlestHobbo]

I've agreed to go permie with my current employer after a break, I'm winding down on my current contract with them...its a wierd atmosphere...I definatly get the feeling that they think, I'll hop off at the first decent rate that comes my way....even before the permie role starts...

Its really wierd trying to get my head round the permie culture as well...not sure i'm going to be able to do it....

Come on economy sort your crap out, and i won't have to carry on with this agonising!!

Thing for me is, I don't want to be spending all my hard earned savings on time off...couple of years time the housing market should be a wonderful place to do business...