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Edited to keep it shorter:
Current job - big shuffle with new CEO, promises of promotion (I am desperate to progress in what is my first perm job having always contracted) but no sign of extra money and feel under paid.
Just been offered a contract with a customer of ours (managing a project we are doing for them) despite me thinking I flunked the interview. Project not as interesting as some I have about to kick off at current job though but would still be a good career move.
Contract is £10k a year more when you add my current employers pension top up but 120 miles a day on the motorway vs 60 miles of country roads. They also want me there 5 days a week, current agreement is 1 day a week work from home (saves me going mad from commuting and cuts my fuel use).
Going to do all the calcs to see how much the real difference is considering I can expense my mileage but will also have to factor in buying a new car as I dont want to put 30k a year on my nice one (contract is 12 months with probably extension to 24 months). Might be an option of electric car charging there (not at current employer) so Leaf might work.
£10k a year more
If you feel underpaid now, that's not enough.
Going back to contracting will make you less attractive to a prospective employer if you want to go back permanent. They will wonder how long you will stick it before you run back to contracting
IME this is incorrect.
Going back to contracting will make you less attractive to a prospective employer if you want to go back permanent.
I take on Contractors and Permies all the time. It makes no difference what type of employment structure you’ve been on/doing or what the reasons behind it are.
Its the skills and ability I, and my peers look for.
You don't sound new to contracting so not sure why you're considering it, based on info provided.
Contract rate should be double that of Permie rate (but not far off the companies total potential liability pension/holidays/sickness/paternity/death in service for an FTE etc).
Remember as a contractor if they drop the project at any time, they could leave you in the wind.
As for the extra travel and on site requirements, sounds like a worse deal.
I’d be thinking very long and hard about doing this 120miles daily, driving in a busy area no doubt too which will increase stress and you’ll be dead by Thursday with Friday to drag yourself through..
And this..
As for the extra travel and on site requirements, sounds like a worse deal.
Travel. No thanks.
Giving up employment rights, sick pay, holidays, flexible working, etc for only 10k more and double the commute? No thanks.
Commute alone would kill this for me, perm or contract aside.
The travel will kill you I once didn't have digs at a job in Bicester once ,for three weeks and driving from Sheffield , well basically I came home got a wash went to bed ...got up that was it...back down the road no me time obvs in F1 it's not 8 hour days so YMMV.
The other side is with your knowledge I could guarantee you would walk back into a perm job tomorrow....not exactly growing on trees experienced peoole
Im a contractor, and from what you've described there's no way that contract is worth taking versus the permie job you're in.
There's no chance in hell I'd go contracting now with potential Brexit doom hanging over us.
an extra 60 miles a day?
that is £1500 of your pay rise gone already at least, could be double that depending on your fuel economy
When the agency first approached me about the role they asked what my daily rate was and I was straight up with them and said I would be looking for £500/day. In reality I would go down to £400 for a long term roll (this is a 1 year contract, most likely extended to 2 and as soon as I know it will go past that I can no longer claim travel as I stick to the rules unlike a lot) but this is not even close.
I was always told to earn 100% of your years earnings in 70% of the time but that is when picking up small contracts of work hence being willing to drop for long term.
Travel does bother me a bit but the time is not much longer. It currently takes me about 1hr in the morning to do a 25 mile route cross country and 1 to 1.5hrs to do the 35 mile motorway route. We will be moving shortly and that will go up to 30 miles cross country (and up to 1hr 20) and no change on the motorway route.
The new job would be about 1hr 20 of motorway unless there is an accident in which case it takes me 2hrs to get the 35 miles home from the current job. I do find the commute soul destroying but less so as a contractor as my mentality is very much "driving to my client" rather than "driving to work".
Fact is I am struggling to fit into employee lifestyle as I take my work very personally. I always have done and that is why I am always learning or researching something and I find it hard to switch off and will do extra work out of hours. That £10k will get eaten into when I work out the extra tax and mileage later. I think it works out as something like £500 a month better in my pocket which is not a lot and I think my favourite thing about working as en employee is having work mates and they are a really good bunch.
I recently went perm from contracting for 15+ years. Contractings not what it used to be. IR35 changes, dividend tax etc all make it quite a bit less lucrative and with the disaster that is brexit looming, being a contractor on a week's notice isn't where I'd want to be.
I was straight up with them and said I would be looking for £500/day. In reality I would go down to £400 for a long term
20% less. Don't do that.
the way I softened the blow of IR35 and now perm is pension. I currently load up 30% into my pension to save on the tax. But I do have the benefit of last years dividend to supplement my earnings as I only used to pay myself at the end of the year so I always had at least a years pay in the bank should I be out of work.
IR35 will be hitting the private sector next April I believe.
Last contract I was offered inside IR35 was a heart breaking £900 a week in tax and the status meant I would have to prove no SDC to be able to claim living expenses for a contract 4 hours away from home so renting a flat. My solution to that was to put 50% into my pension. As soon as you have to rent somewhere to live to do the work it should be automatically allowable to claim regardless of in or out of IR35. Seeing HMRC screwed themselves and the MoD were of little comfort.
20% less. Don’t do that.
This contract is not even close to the £400...
This contract is not even close to the £400…
Realistically there's your answer...
However not everyone is a money-grubbing contractor..some just prefer the work and do the design season and go ride a bike all summer
If you did take the contract have you thought about how you will handle the inevitable questions from your new paymaster about your previous one with the expectation you might be asked to reveal things your previous employer might not want you to?
Is there anything in your current contract which might impede you going to work for a customer?
How big is your industry? In some, people that leave companies to go work for customers/competitors on contracts don't get permanent offers anymore, which might limit your future options....
Nothing in my current contract to stop me working for this new place. Current employer is public sector, new company is one of their customers. We get lots of people coming from our customers to work for us and vice versa. It is quite a friendly industry really were everyone is pretty amicable. That said I am used to working with competitors and NDAs and IP are treated very seriously.
The project I would be managing for the new company would be getting carried out at my current employer by the people I am about to start managing if I stay!
Its the skills and ability I, and my peers look for.
Not sure I agree. I look for those things first of all of course, but the contractors I keep are the ones that, basically, act as employees, taking initiative and ownership, and not just doing the narrow thing they are told to.
Fact is I am struggling to fit into employee lifestyle as I take my work very personally. I always have done and that is why I am always learning or researching something and I find it hard to switch off and will do extra work out of hours.
You might enjoy being a consultant then, like me. Loads of different clients all the time, loads of new challenges and always learning new stuff either from my employer or myself, and a permanent salary with paid holidays and all the rest.
As above, if you aren't earning around double as a contractor you aren't getting paid in line with the market.
In my perm job I will be exposed to more stuff. I have also found the additional learning about contracts, tender processes, people management and other areas of my industry are very difficult to put a monetary value on but I value them very highly for my development.
In the contract job I will be doing 1 project for up to 2 years but it will be interesting and good for the CV as well as a part of an aircraft I have never worked on before.
Just done the calcs, assuming the same pension contributions and 20p/mile actual running costs I will end up £7,700 a year better off contracting but do 16k more miles and be on site 5 days a week vs 4.
For the same income I could up my pension by £11,800 for the same take home after fuel costs.
Hmm, wish I hadn't checked the flat rate VAT aspect...takes it up to around £10-11k better off...
Renting a 1 bed flat near the job will be about the same as the fuel costs.
Too far. Not enough money.
Look for a more local job that pays a decent rate reflective of skills, experience and responsibilities.
Had 3 high up/senior bosses each take me aside to try and find a better place for me here and map out where I want to go here and career wise. Would include getting some line manager experience which is something I have never had as a contractor and I would be going for my chartership which again I have not had the opportunity to do.
Sounds like they want to keep you and have a plan, I know a lot of people hate then but a development plan is exactly what you need if you are staying
I've recently gone back to contracting after a year in a permie role. I'm much happier (and better off). I appreciate the IR35 thing will probably hit next year, but for now I'll make hay while sun shines, including whacking a pretty chunky lump in my pension each month.
if you aren’t earning around double as a contractor you aren’t getting paid in line with the market.
Just to be clear, the rule of thumb is that you should be billing double the permie salary for the role. That's not what you'll be earning (i.e. taking home) though, once you've taken into account corporation tax, income tax, dividend tax etc.
Would include getting some line manager experience which is something I have never had as a contractor
You say that like it's an attractive proposition!