Can you afford to go perm or inside IR35?

[anonymouse]

Don't mind being inside IR35, so long as the rate has an uplift, current client wanted Inside but on Outside rates and couldn't get anybody, once they raised the rate by 20% they managed to get a couple of people. I'm back with this same client now, we're just left to get on with the job, no micro-management, so long as the work gets done, everyone's happy. WFH for the time being.

Would I go back permie? I doubt it, ever. Semi retired, with investments paying the monthly bills, if need be.

[PCTNN]

Can you afford to go perm or inside IR35

Yes, I could.

I don't have kids, my partner has a full time permie job, we live in a nice enough 2 bed flat in central Edinburgh, neither one of us have a particularly flamboyant lifestyle nor extremely expensive hobbies.

If I really had to, I could go permanent on a salary of 30k a year without any drastic changes to our lifestyles.

In fact, I left my 500+ a day (although inside ir35) contract and am about to take a 50k permanent role simply because I can afford to.

Less money but more interesting work and better work-life balance.

[Permatractor]

Hi folks. I'm a newbie here who has been lurking for about a month or so. Last month I left a contract role which wasn't a great rate inside & I didn't find the work interesting at all. Left for a permie role about 12 miles away from where I live (although currently remote) Had only been contracting for 3 years & I did love it in general- only wish I had done it lot earlier in life though when IR35 was less of an issue as I'm getting older now although in good health.

Permie job only pays 47k + shares (which I think is around 3% depending on company performance). Luckily I can afford to live on this salary but it was still a difficult decision to make - made mainly to play it safe for 2021 & not risk being out of work - my skill set is not niche & I sense market saturation in my area as well as this general downturn.
Permie job will also give me training/ some exposure to the cloud arena so may return to contracting later on, if the market picks up.

[GhostofTarbera]

Yes, I could.

I don't have kids, my partner has a full time permie job, we live in a nice enough 2 bed flat in central Edinburgh, neither one of us have a particularly flamboyant lifestyle nor extremely expensive hobbies.

If I really had to, I could go permanent on a salary of 30k a year without any drastic changes to our lifestyles.

In fact, I left my 500+ a day (although inside ir35) contract and am about to take a 50k permanent role simply because I can afford to.

Less money but more interesting work and better work-life balance.

Mug


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[PCTNN]

Mug


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Great contribution. Now do us all a favour go back to running with scissors.

[cojak]

Hi folks. I'm a newbie here who has been lurking for about a month or so. Last month I left a contract role which wasn't a great rate inside & I didn't find the work interesting at all. Left for a permie role about 12 miles away from where I live (although currently remote) Had only been contracting for 3 years & I did love it in general- only wish I had done it lot earlier in life though when IR35 was less of an issue as I'm getting older now although in good health.

Permie job only pays 47k + shares (which I think is around 3% depending on company performance). Luckily I can afford to live on this salary but it was still a difficult decision to make - made mainly to play it safe for 2021 & not risk being out of work - my skill set is not niche & I sense market saturation in my area as well as this general downturn.
Permie job will also give me training/ some exposure to the cloud arena so may return to contracting later on, if the market picks up.

47k is not a pittance, most people can afford to live on it.

[Old Greg]

We started discussing this on the State of Market thread, but it was really off topic.

It started by me saying i cant really afford to go perm even if offered a 100K base salary

My living expenses are 5K per month. That seems high, but i have a family of 5 to support and the figure includes a 2K mortgage payment.

As a contractor outside IR35 I can comfortably clear 5K and have a few grand a month left over to save (or waste)

I also work hard, much harder than the average contractors i see around me, so i tend to get extended more often than not.

As a perm on 100K base (assuming i can get that) i would net about £5500 per month, inside IR35 on my current rate i would net about the same as that as well, assuming i took the same number of days off as a Permie does. Although I probably couldn't afford to take many days off if all i could find was inside IR35.

Thats only £500 to spare, not much head room.

I think it was SueEllen suggested extending mortgage terms and so reducing the monthly payment, that might be an option if i am forced to go perm, although my mortgage only has six years to run.

A £500 surplus per month says you can afford it.

[GhostofTarbera]

47k is not a pittance, most people can afford to live on it.

Not in London


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[Old Greg]

Not in London


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Median weekly wage in London is £736.

[GhostofTarbera]

Median weekly wage in London is £736.

Not bad daily rate


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