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  1. #1

    Nervous Newbie


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    Hi,

    I've just finished serving my notice period after 6 years at a finance company as a perm. I always fancied getting into contracting.
    As I was looking for my first contract, I was approached by a company for a perm role, offering 75k + bonus + other benefits. Though this is much more than what I was getting, downside is this may involve bit of traveling, but all paid.

    Ironically, I also got a contract role offered at £400 a day, 80 miles away. Think it is doable by train as I live close to the train station. Agent is asking me to start ASAP, atm I don't have a ltd company or any thing else done. He wants to help me with these things as well.

    As I have not done contracting before I don't know how these two options compare?
    I am based in Swindon, if that helps.

  2. #2

    More time posting than coding


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    Quote Originally Posted by philipk View Post
    Hi,

    I've just finished serving my notice period after 6 years at a finance company as a perm. I always fancied getting into contracting.
    As I was looking for my first contract, I was approached by a company for a perm role, offering 75k + bonus + other benefits. Though this is much more than what I was getting, downside is this may involve bit of traveling, but all paid.

    Ironically, I also got a contract role offered at £400 a day, 80 miles away. Think it is doable by train as I live close to the train station. Agent is asking me to start ASAP, atm I don't have a ltd company or any thing else done. He wants to help me with these things as well.

    As I have not done contracting before I don't know how these two options compare?
    I am based in Swindon, if that helps.
    I wouldn't get the agent to set up you're company, they're likely to give you a terrible deal. Rather, I'd go with a trusted accountant and ask them to do it. You could probably figure it out yourself but as you have a limited amount of time I think it's a good idea.

    Limited Company FreeAgent Accountants Maslins Accountants would be my recommendation but you'll likely get others.

  3. #3

    Fingers like lightning


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    75K perm is a lot better deal than £400 pd IMO.

  4. #4

    bored now

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    Quote Originally Posted by teapot418 View Post
    75K perm is a lot better deal than £400 pd IMO.
    Yep.. 75k perm = £75 an hour on the old approach of salary / 1000 = hourly rate..

    An 80 mile commute my be doable it may also utterly wear you out based on the number of steps in the journey..
    merely at clientco for the entertainment

  5. #5

    Contractor Among Contractors


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    It's a lifestyle choice. So really depends what made you consider contracting in the first place?

    Could you put up with the perm role for a couple of years and then reconsider a jump to contracting?

    If not then I would say take the contract. But I agree that the perm deal is financially more attractive once you factor in bench time etc., so it would be a tough choice.

    And absolutely do NOT rely on the agent for anything to do with company administration or tax matters.

  6. #6

    My post count is Majestic

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    One is a full time role. One lasts as long as your notice period. You can't compare them on monetary value alone.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  7. #7

    Should post faster

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    Before you decide, read about the new tax rule applicable for dividends.

    New dividend tax regime confirmed - Contractor Weekly

  8. #8

    Fingers like lightning


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    Quote Originally Posted by raphal View Post
    Before you decide, read about the new tax rule applicable for dividends.

    New dividend tax regime confirmed - Contractor Weekly
    Cool, so if someone was perm with a ltd co still running, they can take a dividend of £5k a year from ltd co tax free, even if salary in the 40% band? Currently that would result in an extra £1250 tax bill
    Last edited by SuperZ; 31st August 2015 at 12:38.

  9. #9

    More time posting than coding

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    Quote Originally Posted by SuperZ View Post
    Cool, so if someone was perm with a ltd co still running, they can take a dividend of £5k a year from ltd co tax free, even if salary in the 40% band? Currently that would result in an extra £1250 tax bill
    If someone was perm, where would the ltd co be getting its money from?
    • The meaning of life is to give life meaning
    • Worrying about tomorrow spoils today

  10. #10

    Fingers like lightning


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    Quote Originally Posted by DannyF1966 View Post
    If someone was perm, where would the ltd co be getting its money from?
    Sidelines/a little retained profit from previous year as a company should . If the company is not currently earning you can still pay into a pension or take dividends.
    Last edited by SuperZ; 31st August 2015 at 15:25.

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