Hello everyone, great forum!
I currently work in IT Security, 7 years experience in this field. I've got the 'offer' of working with some ex big 4 colleagues who now work at a bank, some are permies and some contractors. I.e. a 6 month contract, £500 a day, contracting via another contractor's company (its easier to do it that way as his co. has already been approved as a vendor there). The good news is that they would be willing to wait for me during my notice period - although I would never count that as gospel as a contractor of course!
I'm just not that sure its that much more financially profitable. I'm on £65k base. My co. pension contribution is 12% (I pay 8%). That's effectively 4k take home plus 1k into a pension fund, i.e. 5k a month. Let's say a tangible post-tax total of £5,250 a month including extraneous benefits (medical insurance, bonus, job security etc.)
Looking at contractor calculator, they reckon £500 a day equates to a net take home of £6,261 outside IR35 and £4,968 inside it The respective equivalent salaries, they reckon, are £124k and 90k. Looking at my current salary/take home that seems hard to believe.
I'm fairly certain the contract I'll be given will be outside IR35. However the take home isn't significantly higher than what I have already, and of course contracting is a gamble. I want to give it a go and make the move. Am I missing something?
I currently work in IT Security, 7 years experience in this field. I've got the 'offer' of working with some ex big 4 colleagues who now work at a bank, some are permies and some contractors. I.e. a 6 month contract, £500 a day, contracting via another contractor's company (its easier to do it that way as his co. has already been approved as a vendor there). The good news is that they would be willing to wait for me during my notice period - although I would never count that as gospel as a contractor of course!
I'm just not that sure its that much more financially profitable. I'm on £65k base. My co. pension contribution is 12% (I pay 8%). That's effectively 4k take home plus 1k into a pension fund, i.e. 5k a month. Let's say a tangible post-tax total of £5,250 a month including extraneous benefits (medical insurance, bonus, job security etc.)
Looking at contractor calculator, they reckon £500 a day equates to a net take home of £6,261 outside IR35 and £4,968 inside it The respective equivalent salaries, they reckon, are £124k and 90k. Looking at my current salary/take home that seems hard to believe.
I'm fairly certain the contract I'll be given will be outside IR35. However the take home isn't significantly higher than what I have already, and of course contracting is a gamble. I want to give it a go and make the move. Am I missing something?
Comment