Should I consider a contracting job? Currently I earn £82K as permanent in Scotland Should I consider a contracting job? Currently I earn £82K as permanent in Scotland - Page 2
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  1. #11

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    Quote Originally Posted by malvolio View Post
    Plus, inside IR35, you don't get expenses anyway...
    Is this legislation already in place? Again like anything else, there will be a window open for Individuals to be easily claiming to be outside IR35 :-)

    I have been reading other articles on the internet where they have done some comparison calculators and looks like with Contracting one could be still better off with close to £3K per month. That is quite a good difference?

  2. #12

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    Quote Originally Posted by kempc23 View Post
    What area of SAP? I think your permie salary estimate may be too high, and contracting day rate estimate may be too low.
    within SAP I cover all aspects of development and managing development teams. I have recently attended an interview and cleared the initial stages. Waiting for a date for final stage of the interview. I have demanded £90K + benefits and the company seems to be ok to pay my expected salary. I had mentioned to them clearly that any less than 90K will be waste of everyone's time. I only attended the interview after getting a confirmation that, if I go through they are willing to offer that kind of salary.

    Only reason i am trying to consider Contracting over a permanent role is that the new opportunity comes with a lot of travel. In my current role, I don't travel. However, with the new role, the company expects me to travel almost all 5 days. So I was thinking if I have to travel all 5 days then i can better do contracting and earn more ofr taking the hassel of travel. So i am taking time to evaluate which would be best option.

  3. #13

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    Quote Originally Posted by BroglieBoy View Post
    Is this legislation already in place? Again like anything else, there will be a window open for Individuals to be easily claiming to be outside IR35 :-)

    I have been reading other articles on the internet where they have done some comparison calculators and looks like with Contracting one could be still better off with close to £3K per month. That is quite a good difference?
    And this thread is ending up going the same way as most of these should I contract thread. Pure focus on the money and very little regard for the risks.

    IR35 has been in place a long time and is also going to hit the private sector so those that are outside now might have a very nasty shock come April next year.

    You mention better off to the tune of 3 a month... maybe but when you're not in contracting that months income will be nil, zip, nada. When the numbers are as close to yours then just a month out is going to make contracting a worse option. OP's always get giddy about the numbers in threads like this and they always look at the absolute best case.
    Have a look at this thread, read from the bottom backwards. Put yourself in the same position as these people. Does the final take home look good with the breaks these guys are having?
    https://www.contractoruk.com/forums/...arket-176.html

    Also, another very important factor. You will NOT be taking these numbers home that are exciting you.
    First thing you have to do as a contractor is build a war chest. The second gig is the hardest to get as you have no money coming in and you are still a newbie contractor so you need to save as much as possible to get 6+ months in your warchest. That won't leave you much to distribute in the first 6 to 8 months of a contract.

    Also even when you do manage this most of us pay ourselves under the upper tax threshold so I'm actually skint the last two months of a year. I bet you get more cash in your pocket a year than I do because I don't want to cross the threshold. Yes the money is in the company but it's there until I finish contracting and take it out more efficiently. My yearly take home is artificially low because of it so whatever the calculators say you will NOT be seeing all that in your pocket for at least half a year and if you are planning to be tax efficient you won't see it until you retire.

    You mention the hassle of travel. You'll be doing many gigs over your career and you are most certainly going to end up some absolute crap situations. Everyone does. Could be just an awful gig where the life bleeds out of you, you could find yourself in a contracting hating environment, one where the contractors is the easy scapegoat, where you will have to travel or the one that you get binned off early with very little notice. Not every gig is a winner and I've had some awful ones, which I'm sure most people with a couple of years under their belts have as well.

    It's also highly likely you'll have to look further afield if you want to dove tail gigs so you are also going to have to be prepared for some very length commutes and possibly staying away during the week.
    Last edited by northernladuk; 29th April 2019 at 09:53.
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  4. #14

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    Quote Originally Posted by northernladuk View Post
    And this thread is ending up going the same way as most of these should I contract thread. Pure focus on the money and very little regard for the risks.

    IR35 has been in place a long time and is also going to hit the private sector so those that are outside now might have a very nasty shock come April next year.

    You mention better off to the tune of 3 a month... maybe but when you're not in contracting that months income will be nil, zip, nada. When the numbers are as close to yours then just a month out is going to make contracting a worse option. OP's always get giddy about the numbers in threads like this and they always look at the absolute best case.
    Have a look at this thread, read from the bottom backwards. Put yourself in the same position as these people. Does the final take home look good with the breaks these guys are having?
    https://www.contractoruk.com/forums/...arket-176.html

    Also, another very important factor. You will NOT be taking these numbers home that are exciting you.
    First thing you have to do as a contractor is build a war chest. The second gig is the hardest to get as you have no money coming in and you are still a newbie contractor so you need to save as much as possible to get 6+ months in your warchest. That won't leave you much to distribute in the first 6 to 8 months of a contract.

    Also even when you do manage this most of us pay ourselves under the upper tax threshold so I'm actually skint the last two months of a year. I bet you get more cash in your pocket a year than I do because I don't want to cross the threshold. Yes the money is in the company but it's there until I finish contracting and take it out more efficiently. My yearly take home is artificially low because of it so whatever the calculators say you will NOT be seeing all that in your pocket for at least half a year and if you are planning to be tax efficient you won't see it until you retire.

    You mention the hassle of travel. You'll be doing many gigs over your career and you are most certainly going to end up some absolute crap situations. Everyone does. Could be just an awful gig where the life bleeds out of you, you could find yourself in a contracting hating environment, one where the contractors is the easy scapegoat, where you will have to travel or the one that you get binned off early with very little notice. Not every gig is a winner and I've had some awful ones, which I'm sure most people with a couple of years under their belts have as well.

    It's also highly likely you'll have to look further afield if you want to dove tail gigs so you are also going to have to be prepared for some very length commutes and possibly staying away during the week.

    Many thanks for all the inputs. Appreciate your time for the response and for the details.

  5. #15

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    Quote Originally Posted by BroglieBoy View Post
    Many thanks for all the inputs. Appreciate your time for the response and for the details.
    No worries. Just trying to give the low down and dirty. If you can still consider that and you are convinced it's for you at least you are prepared for the worst and any surprises.
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  6. #16

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    Quote Originally Posted by BroglieBoy View Post
    However, couple of my friends suggested that if I have a own limited company there are various ways and loopholes to take home maximum of the £120K and all done legally.

    Quote Originally Posted by BroglieBoy View Post
    Is this legislation already in place? Again like anything else, there will be a window open for Individuals to be easily claiming to be outside IR35 :-)

  7. #17

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    Quote Originally Posted by northernladuk View Post
    Also even when you do manage this most of us pay ourselves under the upper tax threshold so I'm actually skint the last two months of a year. I bet you get more cash in your pocket a year than I do because I don't want to cross the threshold. Yes the money is in the company but it's there until I finish contracting and take it out more efficiently. My yearly take home is artificially low because of it so whatever the calculators say you will NOT be seeing all that in your pocket for at least half a year and if you are planning to be tax efficient you won't see it until you retire.
    You need to get yourself a partner with whom you can do some income shifting ... HTH

  8. #18

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    Also remember, if wife working add an extra £2K a month for London childcare costs


    Sent from my iPhone using Contractor UK Forum

  9. #19

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    Quote Originally Posted by GhostofTarbera View Post
    Also remember, if wife working add an extra £2K a month for London childcare costs


    Sent from my iPhone using Contractor UK Forum
    £2K for child care ... wow that's a lot compared to Scotland where it is around £900 to £1000

  10. #20

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    £82k in Scotland, and no travel.

    £90k in London, 5 days a week travel away from your family.

    There's only one choice really.

    BTW £90k in London on a mortgage multiple might just about get you a 2 bed flat if you're lucky. In an ex-council block.

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