Contractor to perm - how much money to expect (part timer)

[PCTNN]

Saw this on a job ad, which I suspect to be for lloyds.


"This is a permanent role with the salary range of £60k to £70k per annum plus benefits. If you are interested in contract, the max rate is £400 p/d until the end of March then the role will be classified as inside IR35."


Just one case but kind of gives you an idea of the companies' point of view of day rate/salary equivalence.

[BABABlackSheep]

Saw this on a job ad, which I suspect to be for lloyds.


"This is a permanent role with the salary range of £60k to £70k per annum plus benefits. If you are interested in contract, the max rate is £400 p/d until the end of March then the role will be classified as inside IR35."


Just one case but kind of gives you an idea of the companies' point of view of day rate/salary equivalence.

That’s not Lloyds. They have a blanket policy of the end date being the 28th Feb working through a PSC.

I agree. Outside London £400 a day roughly equates to 60k + benefits, although, there’s a lot of people on £400 a day who wouldn’t get a £60k Role as they tend to be senior.

[tsmith]

Understand there is a difference between contracting/permanent but seems like 80k might be more reasonable?

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No such thing as reasonable. When you go perm a whole new sphere of considerations.

For one theres probably a wage structure. Whos your boss and how much is he on? They cant pay you £80k if hes on £70k.

After 2.5 - youre more like a permalancer than a contractor.

Remember when you go perm employer has to pay 14% employers national insurance. so £65k is costing them £75k plus all the other benefits.

A negotation is just that. They make an offer either go in with a new offer or walk away. Isnt 40% tax after 50k? So anything over that is tax heavy anyway.

[DZ2]

I was offered perm role at £54K, there is bonus/pension/company shares on top so total package would sum up to just under £70K, plus 6 weeks of holidays.

This is compared to day rate of £500, which is typical rate in my field. I would actually like to move back to perm (I think work would be more interesting and involved), but this just doesn't make any sense financially. Sure I expect perm salary to be lower but just not that much lower; even inside of IR35 I'd better off by huge margin contracting (and 80% of contracting roles are home-based, so travel expenses are not an issue).

[JoJoGabor]

I was offered perm role at £54K, there is bonus/pension/company shares on top so total package would sum up to just under £70K, plus 6 weeks of holidays.

This is compared to day rate of £500, which is typical rate in my field. I would actually like to move back to perm (I think work would be more interesting and involved), but this just doesn't make any sense financially. Sure I expect perm salary to be lower but just not that much lower; even inside of IR35 I'd better off by huge margin contracting (and 80% of contracting roles are home-based, so travel expenses are not an issue).

If you were getting £500 a day, £54k perm offer seems low. I switched from £550 a day to £115k, although it is for a different role. I think you should get at least £75k for the same role

[GhostofTarbera]

I was offered perm role at £54K, there is bonus/pension/company shares on top so total package would sum up to just under £70K, plus 6 weeks of holidays.

This is compared to day rate of £500, which is typical rate in my field. I would actually like to move back to perm (I think work would be more interesting and involved), but this just doesn't make any sense financially. Sure I expect perm salary to be lower but just not that much lower; even inside of IR35 I'd better off by huge margin contracting (and 80% of contracting roles are home-based, so travel expenses are not an issue).

Interesting and involved for 40% of the money working from home I bet you are the life and soul at your one man office party

Just imagine doing what you do now but with performance reviews and office politics and stuck with the same tulipty boss for rest of your life

Then hey presto on salary day you get a month what you could earn in 7 days before




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[DZ2]

Interesting and involved for 40% of the money working from home I bet you are the life and soul at your one man office party

Just imagine doing what you do now but with performance reviews and office politics and stuck with the same tulipty boss for rest of your life

Then hey presto on salary day you get a month what you could earn in 7 days before




Sent from my iPhone using Contractor UK Forum

Those are excellent points and is exactly why I'm not rushing to sign up to the offer

[PerfectStorm]

Although we like to think we're free of office politics, there's not a lot to stop people dragging us into it.

I don't start fights or send snotty emails, but I can't hold either of these things back.

[Whenimgone]

Even if it was possible to directly compare a permanent / salary roles, the only thing that matters is take-home pay. Daily rate, inside/outside, permy benefits, etc are just indicators.

The online calculator comes close but is not nearly nuanced enough to give a true representation

[wattaj]

Even if it was possible to directly compare a permanent / salary roles, the only thing that matters is take-home pay. Daily rate, inside/outside, permy benefits, etc are just indicators.

Perhaps for you, but these "indicators" are, and should be, a significant part in any personal comparison.