• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Can you afford to go perm or inside IR35?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #21
    Afford as in survive, yes - I've always been incredibly keen to maintain a modest standard of life and keep outgoings low. Hence why I live in a semi detached in the Midlands have a mortgage <£500. Biggest issue is that the wife is now a full time mum - even with reasonable outgoings, covering 3 people isn't easy. But I'm confident I could get a permie job to do so.

    Inside IR35/Brolly.....so long as I don't need to travel it should be fine. I've been able to push my rates up over the last 12-18 months without getting too comfy about it, so hopefully, that would soften the blow. Biggest issue is travel, but I'm actually now entering my fourth year of not needing to stay away which I never thought possible.

    Naively perhaps, but my hope is that I can still skirt things. We'll see, I've got a pretty unique set of skills and a lot of ad-hoc experience so I dunno. Right now, in theory, I'm at a bank in an outside roll. I guess the real test will be what happens to that in April!
    Last edited by vwdan; 20 December 2020, 23:08.

    Comment


      #22
      Originally posted by GhostofTarbera View Post
      Not bad daily rate


      Sent from my iPhone using Contractor UK Forum
      If you say so.

      Comment


        #23
        Originally posted by vwdan View Post
        waffle, waffle...

        Naively perhaps, but my hope is that I can still skirt things. We'll see, I've got a pretty unique set of skills and a lot of ad-hoc experience so I dunno. Right now, in theory, I'm at a bank in an outside roll. I guess the real test will be what happens to that in April!
        Cheese or ham?

        Comment


          #24
          In theory, I can live on £55k ...

          But only if several expenses are paid by someone else and I can take most of that as dividends...

          Comment


            #25
            Originally posted by ladymuck View Post
            In theory, I can live on £55k ...

            But only if several expenses are paid by someone else and I can take most of that as dividends...
            In theory I can live on £1500 a month if several expenses are paid by someone else. I could possibly take it down to below £1000 if my sugar-daddy covering those several expenses got his fingered out and treated my right by paying even more for me...

            Comment


              #26
              Originally posted by oilboil View Post
              In theory I can live on £1500 a month if several expenses are paid by someone else. I could possibly take it down to below £1000 if my sugar-daddy covering those several expenses got his fingered out and treated my right by paying even more for me...
              Is this how wife’s work ?


              Sent from my iPhone using Contractor UK Forum

              Comment


                #27
                Originally posted by sludgesurfer View Post
                That’s a lunatic underestimate. The couples have a 4 million+ house and a 1 million pound mortgage. So what the article is saying is that if you are already a multi-millionaire then you can get by on 500k a year.

                That said, there’s nothing to spend money on at the moment and a grim flat can be bought for around 600k. I think I could live in London on around 150k.

                My advice would be to apply for permie jobs at around 200k (maybe a bit more if you are any good at programming) which should give you an OK life in London and enough savings to move to the beach when you feel like it. I think a lot of the problem is all the negative Nellies panicking and talking themselves into low rates.

                Comment


                  #28
                  Originally posted by Fraidycat View Post
                  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.
                  Not sure if you mentioned where you live but can you downsize to a cheaper location/house?

                  I'm exploring both perm and contract options at the moment at around £130-150k salary or £900/day but the latter is likely to be inside post April and I prefer perm anyway. Since I started contracting 8 years ago I've always budgeted at around 550-600/day and working 40 weeks a year and anything else has been a bonus.

                  Comment


                    #29
                    Originally posted by edison View Post
                    Not sure if you mentioned where you live but can you downsize to a cheaper location/house?
                    That's a really daft thing to suggest. Hey kids, we're going to uproot you all from your friends and school, mummy and daddy will now be doing 6 hour commutes to work and you all get to share a bedroom (no fighting for the top bunk!) cos that means we pay less to live.

                    Oh yeah, and we're moving to Doncaster

                    Comment


                      #30
                      My problem is the permanent jobs I would be aiming for seem to pay much the same as when I started contracting in 2008. Would also need to be commutable from where I live (for a start a monthly rail pass to London is about £550 now). If permanent jobs were a bit better paid I suspect a fair few of us would have stayed in them.

                      The long term plan was always to pay off the mortgage (in about five years) then review the situation but the IR35 changes might force a rethink. My suspicion is there will still be a demand for what I do but in the last four years gaps between contracts have got longer.

                      Comment

                      Working...
                      X