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Daily Rate Vs Permie Money

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    Daily Rate Vs Permie Money

    Posted here recently about the Clientco offering me a permie position:

    Now they have come back with a firmed up offer.

    Just need to work out what their offer is worth in Contractor terms

    All advice appreciated thanks
    Faster, faster, faster, until the thrill of speed overcomes the fear of death.

    Patience is something you admire in the driver behind you and scorn in the one ahead.

    #2
    Theres a handy paye calculator on the internet somwhere, that will give you the takehome. Compare it to what you get now, decide?
    ‎"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."

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      #3
      Originally posted by Moscow Mule View Post
      Theres a handy paye calculator on the internet somwhere, that will give you the takehome. Compare it to what you get now, decide?
      Is it this one??
      Faster, faster, faster, until the thrill of speed overcomes the fear of death.

      Patience is something you admire in the driver behind you and scorn in the one ahead.

      Comment


        #4
        Originally posted by BlackenedBiker View Post
        Is it this one??
        http://www.thesalarycalculator.co.uk/salary.php
        ‎"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."

        Comment


          #5
          For 500gbp/day .... how is that as a perm ?

          Those calculators take no account of hols, pension, promotion, training, sick etc.


          I used to think 500 was great. Now it is kind of average but I don't see much more for my current skillset.

          Comment


            #6
            Never understood some of the permie vs contractor rules that are frequently referred to here - I tend to calc it as:

            Day Rate (500) x 5 (week) x 45 (2 weeks bank hols / 4 weeks hols / 1 week sick) = 112,500

            * 0.8 to reflect losing 20% to Corp tax = 90,000

            Personal Income = £40,000 (without breaching income tax bracket)

            Money remaining in Company = £50,000

            Additional entreprenuers tax on company money once company closed @ 10% = £5000

            So £500 pd = approx £40,000 pa personal income and another £45,000 deferred income

            Obvioulsy theres a million things to consider, expenses, NIC's, NI, whatever salary you pay yourself, time on the bench, how much over the lower tax bracket you go, how much hols you want, pension contributions for tax relief etc etc But this rough formula has held true for me for the last 3 years.

            Using the salary calculator above:

            £100,000 permie @ 10% pension contribution = Take Home £59,310.40

            Plus all the trimmings, hols, sick, pension matching, shares etc etc

            Since you're not likely to be getting 100,000 permie without being in a very strong position re: perks you just need to readjust for whatever salary they offered

            So I weigh it up like that - as a 35yr old with no kids, contracting wins every time...
            The mind is its own place, and in itself, can make a Heaven of Hell, a Hell of Heaven

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              #7
              You can download a comparison tool from our homepage on our website that will compare PAYE, Self-employed, Umbrella, Ltd company inside and outside IR35

              Comment


                #8
                I suspect that they will offer hourly rate * 1000

                i.e. Daily rate * 125

                Comment


                  #9
                  Originally posted by LegendsWear7 View Post
                  I used to think 500 was great. Now it is kind of average but I don't see much more for my current skillset.
                  You poor babbie. How do you cope?
                  Originally posted by MaryPoppins
                  I'd still not breastfeed a nazi
                  Originally posted by vetran
                  Urine is quite nourishing

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