70k+bonus vs 400pd contract

[yetanotherbob]

I would appreciate any help in choosing between the two.
Between a permanent position offering 70000 + bonus + pension and a contract position (3 months initially with possibility of extension).
There's been a gap of 2 months after my last contract (a year's continuous work) but that's only because i refused a few initial offers at tulip rates.
Please advise.

[malvolio]

I would appreciate any help in choosing between the two.
Between a permanent position offering 70000 + bonus + pension and a contract position (3 months initially with possibility of extension).
There's been a gap of 2 months after my last contract (a year's continuous work) but that's only because i refused a few initial offers at tulip rates.
Please advise.

£400 pd is £50 ph is roughly £50k salary with all the extras.

£70k pa is £560 pd to get the same net. Not counting bonus and pension funding.

Hope that helps...

[Wanderer]

I would appreciate any help in choosing between the two.
Between a permanent position offering 70000 + bonus + pension and a contract position (3 months initially with possibility of extension).
There's been a gap of 2 months after my last contract (a year's continuous work) but that's only because i refused a few initial offers at tulip rates.
Please advise.

I agree with malvolio's figures so I'd be inclined to recommend the permie role. It might be a good move while the market sorts itself out and you can always leave after a year or whatever.

I guess it depends if you are willing to go into permiedom or not, though after a year's contract at your last place you must have been feeling a bit like a permie anyway..

[yetanotherbob]

£70k pa is £560 pd to get the same net.

Thanks. Is that true even if the contract is outside IR35?

PS: The continuous work was with two different clients. Luckily there was no bench time between the two..

[SueEllen]

I know you don't want to go permie but if the permie job gives you new skills both technical and soft that you can use take it.

Least they will pay for you to be on holiday, so when they really p*ss you off take a day off.

[northernladuk]

If you have to ask about the cash and not taking in to account the lifestyle then you are destined for permie land.. Go for it.

[malvolio]

Thanks. Is that true even if the contract is outside IR35?

PS: The continuous work was with two different clients. Luckily there was no bench time between the two..

NL's propaganda machine obviously continues to work. I love the modern culture that contractors invariably assume IR35 is a factor. It isn't, if you know what you're doing; that's why I never allow for IR35 when discussing rates.

Obviously it would worsen the contract position in the 0.5% chance you were inside and HMRC could prove it. To do the numbers, simply multiply the day rate by how ever many days you expect to work (hint: not more than 240) to get the annual equivalent gross without the perks then take 60% of that to allow for your taxes and the Employers NI you also have to pay. That's a maximum £62k for no security, no pension, no holidays and no bonus...

[BolshieBastard]

I know you don't want to go permie but if the permie job gives you new skills both technical and soft that you can use take it.

Least they will pay for you to be on holiday, so when they really p*ss you off take a day off.

Hahaha but with permidom, you have to ask for permission to take a day off!

Personally, I wouldnt touch a permie role but that's because I dont want one and not interested in the salary v rate argument. There's far more to the equation than that.

[SueEllen]

Hahaha but with permidom, you have to ask for permission to take a day off!

Not if you are sick.

Though you have to plan those sick days well. (Hint: If you take a Monday off you have to be ill on Tuesday as well. If you want a Friday be sick on Thursday. And if you are from aboard don't presume because someone is from the UK they won't understand you discussing your proposed sick day off in a foreign language)

Personally, I wouldnt touch a permie role but that's because I dont want one and not interested in the salary v rate argument. There's far more to the equation than that.

Agreed.

Had an agent phone be about permie roles a month ago. Said "I'm NOT interested and I'm busy. Bye" and put the phone down on him when he was in mid-flow. He actually phoned back Obviously not used to a woman speaking to him like that.

[BlasterBates]

Well do a calculation:

400 a day is 92000 gross...assuming 230 days.

That gives you a take home of roughly 58 grand outside IR35.

A 70 grand job will give you take home of around 42 grand, but there are benefits, like pension contributions and the bonus, so being conservative I would add about 10% on so say about 46 grand.

so it is 58 vs 46 grand in the hand, assuming that you don't have to travel for your contract.

Now you have a bench risk you need to add in.

However if you don't need to take holiday you might have the potential to earn more on your contract so you could be looking at 63 grand or so.

You could be up to 17 grand better off if you go without your holiday and you work without bench time.