permie to contractor - 2020 permie to contractor - 2020
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  1. #1

    Nervous Newbie


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    Default permie to contractor - 2020

    Hi there

    Is there a good comparison site or payrol handlers for telling differences between permie / inside ir35 / outside ir35 ?

    i have been a permanent employee until now. I am late to the contracting party. I am getting around 4200 net/month. But due to some financial reasons i need to save more money.

    I am looking to earn around 6200 gbp / month. How much daily rate for inside ir35 will I require? Will £525 gbp/day get me this?

    Thanks

  2. #2

    Fingers like lightning


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    Jul 2010
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    Quote Originally Posted by newcontractor2020 View Post
    Hi there

    Is there a good comparison site or payrol handlers for telling differences between permie / inside ir35 / outside ir35 ?

    i have been a permanent employee until now. I am late to the contracting party. I am getting around 4200 net/month. But due to some financial reasons i need to save more money.

    I am looking to earn around 6200 gbp / month. How much daily rate for inside ir35 will I require? Will £525 gbp/day get me this?

    Thanks
    Plenty of calculators out there on t'interweb.

    If you go down the umbrella route, you'd currently need nearer £550 per day.

    However, there seems to be a hell of a lot of confusion out there as to what rates should be quoted to contractors, particularly in light of the April 2021 private sector off-payroll rollout.

    I think you're looking at it the wrong way though. Have you considered:
    1. It's a case of what the clients are prepared to pay and it's currently a buyer's market.
    2. What if you are furloughed, particularly as lots of financial services clients like to do around Christmas time. Your calculations would then be wrecked and you'd need more to cover the lost 2 weeks.
    3. Unless you have a niche skillset, you're not likely to rock up and just demand a reasonably high contract rate. Sure £525 is average (or some may even say low) in London for software development, but this may well be much lower right now and that's if you can even find a contract.

  3. #3

    bored now

    eek's Avatar
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    Quote Originally Posted by newcontractor2020 View Post
    Hi there

    Is there a good comparison site or payrol handlers for telling differences between permie / inside ir35 / outside ir35 ?

    i have been a permanent employee until now. I am late to the contracting party. I am getting around 4200 net/month. But due to some financial reasons i need to save more money.

    I am looking to earn around 6200 gbp / month. How much daily rate for inside ir35 will I require? Will £525 gbp/day get me this?

    Thanks
    So what happens when the contract gets cancelled and you don't earn money for 2-6 months (heck there are people here who haven't worked for 12-18 months). In this market unless you are already unemployed don't do it.

    Yes contracting once upon a time offered more money and it may do again but it's not doing so at the moment.

    Work out how to cut your costs back to your income or just cut your costs back to your income the next few years aren't going to be pleasant.
    Last edited by eek; 16th September 2020 at 08:39.
    merely at clientco for the entertainment

  4. #4

    My post count is Majestic

    northernladuk's Avatar
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    When you say you are new. Have you got a contract or are you still employed?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  5. #5

    Some things in Moderation

    cojak's Avatar
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    Also are you junior or senior in your current role?

    Unless you have very niche skills, only senior, experienced people are going to get £500+ roles these days.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

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