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calling contractors in IT -- need advice on salary vs contract offer.

(38 Posts)
uwila Tue 14-Aug-07 12:37:18

If you made £63k in a staff position in the uk, would you entertain a job offer for £150k in Dublin where you would obviously have to provide your own transportation, hotel, etc.?

Current staff position provides no pension and no private medical.

The work is a good career move and more interesting than current job.

BTW, this offer is not for me.

uwila Tue 14-Aug-07 12:45:29

This involves commuting to/from Dublin. It does not involve relocation.

LazyLineLegilimens Tue 14-Aug-07 12:48:53

Commuting from London?

How long would the travelling be? every day? Or just at weekends?

uwila Tue 14-Aug-07 13:15:22

Leave mon morning and return friday afternoon/evening.

uwila Tue 14-Aug-07 14:49:37


LazyLineLegilimens Tue 14-Aug-07 14:52:01

Does this person currently work away from home Mon-Fri>

If so, then yes, I would definitely consider it. Would have to think hard if they were home mon to friday though. It's a toughie.

LazyLineLegilimens Tue 14-Aug-07 14:52:50

Obv, am not contractor and have no experience, just offering opinion, oops

good luck

clumsymum Tue 14-Aug-07 15:02:23

Do bear in mind the fact that Dublin is a pretty expensive place to live, I believe currently more expensive than London, so accommodation will cost a lot Mon-Fri (dh won't currently consider Dublin becos of that).

Also, the contractor needs to consider his/her costs. Will he/she use an umberella agency or form a ltd company? Both these options involve fees. Does this person understand the implications of contracting from the legal/taxation/financial obligations p.o.v. Also bear ion mind that once you start contracting, it's up to you to keep your skills up-to-date, which sometimes means you have to spend periods not earning, while you train or practice something new.

Having said all that, for a really interesting position, without family pressures to stay at home, I'd probably do it (but then we've been contracting between us for about 14 years)

geordiemacminx Tue 14-Aug-07 15:02:58

As a contractor you can set up your own company and therefore get certain "tax breaks". Accomodation in dublin is expensive - especially hotels. A b&b or room for rent would work out much cheaper. You would also need to investigate flight times and costs, plus whether your employer would be flexible re working hours, enabling you to work later during the week to finish earlier on a friday - in my experience if you are not finishing til 5.30, then it could be as late as 10 by the time you get home. If you can use a budget airline cost is better but reliability is a problem.

You also need to think about how long you intend to contract for, whether its long or short term, and how easy it would be to get a job back home once the contract has finished.

uwila Tue 14-Aug-07 15:03:25

tis for DH, who yes already works away mon-fri.

I'm trying to guage if this £150k in contract money plus travel and expenses is still more attractive than current salary job.

I'm inclined to think that extra money could very quickly be pissed away in flights and hotels.

geordiemacminx Tue 14-Aug-07 15:04:18

plus what clumsy mummy said.

meandmyflyingmachine Tue 14-Aug-07 15:08:00

My dh works in Dublin one or two days a week usually. Flies budget airlines. Price very variable IHE but I guess if you knew exactly when you would be going it would be different. DH's trips are bit ad hoc.

Hotels pricey.

More research needed I reckon. It is a lot of extra money though, especially if his current job doen't include pension/healthcare .

And if he will like it more...

geordiemacminx Tue 14-Aug-07 15:09:26

it depends on your dh too, whether he is the sort of bloke who would be happy renting a room from an old biddy, having hismeals cooked relatively cheaply or whether he would be outliving the contractor life, boozing with colleauges most nights, eating out etc... if he is the later then would be very easy to piss away a lot of money...having said that if you were careful and thought about things properly it is an extra 87k a year which is a lot.

I think I am correct in saying IR35 tax impklications have changed again which complicates things but if you had a recent management company/account would be able to advise

geordiemacminx Tue 14-Aug-07 15:10:53

apologies my 1 handed typing is rubbish!!!

squiffy Tue 14-Aug-07 15:12:43

It's a no-brainer. Airfare would be maybe £100 on average if booked well enough in advance = £5,000 cost pa. I've just looked at the laterooms website and you can get hotel rooms for £45 per night in Dublin, so renting privately should be much cheaper, but even if not then cost of hotel = £9,000 pa. Loss of four weeks paid holiday pa = £5,500 based on salary of £63k. Still leaves 'X' £66,000 better off and that's before looking at tax breaks you get by contracting (if you use a professional tax company you can often reduce effective tax rate from 40% at top end to 30% or so, if you are working overseas).

So, doubling the salary, living in a fab city, getting bonus points on CV for international experience... what's not to like?

uwila Tue 14-Aug-07 15:34:05

Can you give me a link to laterooms website, please?

geordiemacminx Tue 14-Aug-07 15:37:32

You will probably find once your dh is over ther he will be able to source cheaper accomodation through work mates and local knowledge.

uwila Tue 14-Aug-07 15:43:53

He already knows the people there. In fact he used to work with them, but would now be returning on a contract basis.

clumsymum Tue 14-Aug-07 16:02:16

uwila, just another couple of points.

DH has now been on a very lucrative contract for nearly 24 months (just ending). Trouble is, he got very depressed about being away, but felt he couldn't end it, becos the money was good, and leaving it would also have distressed him. He hated being away so long (we have taken odd weeks, and a couple of holidays, but still), partly cos he's not a sociable, stand-in-a-bar and talk to anyone sort.

Even if your dh doesn't mind being away, YOU might find you start to mind, doing all the childcare etc 5 days per week. ESP if he knows the blokes there, and is free to nip out for a drink any evening he wants, while you scratch around for a baby sitter so you can get the odd night out.

Just something to consider, esp if it's likely to be a longish term contract.

BetsyBoop Tue 14-Aug-07 16:14:56

DH is an IT contractor & as a rule of thumb you need at least double what you would get as a permie to make contracting worthwhile after allowing for holidays/sick days /accountants/travel/accommodation etc - however Dublin is quite expensive so check out what the costs would be there beforehand

Also will it suit you as a couple/family? No amount of money will compensate for that if it doesn't. I was fine DH working away M-F before we had kids, but with a 20month old & another due in Oct I'm finding it much harder now & DH misses out on a lot with DD (as DD does with her Daddy)

Also get your accountant to check out the tax position - not sure if your DH would be taxed as an irish resident as he'd be spending more than 183 days a year there & I think their tax regime is higher.

uwila Tue 14-Aug-07 16:41:20

"Even if your dh doesn't mind being away, YOU might find you start to mind, doing all the childcare etc 5 days per week. ESP if he knows the blokes there, and is free to nip out for a drink any evening he wants, while you scratch around for a baby sitter so you can get the odd night out. "

OH.... Welcome to my life. I know this scenario all too well. After abouth 14 months of it I stomped my feet and demanded we hire a live in nanny. Happiness restored. DH has always worked away. DD is now 4 and DS is 2. So I know exactly what I'm in for. He works in Birmingham now Mon-Thurs. so what's one more day in the week?

uwila Tue 14-Aug-07 16:47:11

Aren't I a alovely accommodating wife?

Seriously, if it's a good career move I wouldn't hold him back. He would just resent me for it. And, likewise, I would expect him to support me if I got a good job offer.

Nightynight Tue 14-Aug-07 16:54:44

how secure and longterm is the contract? dont forget to factor in the time to get another contract after this one.

clumsymum Tue 14-Aug-07 17:08:59

Right uwila, you've been there ....... I'm glad it isn't just me who started to feel a bit put upon. I wouldn't hold my dh back either, but this is a partnership.

Ah, do I smell a company in Brum who might need a developer soon, cos as I said, dh's current contract ends in 3 weeks, and I want him near home this time

uwila Tue 14-Aug-07 17:27:17

He's actually an Ops Mgr. so he won't be leaving a developer role vacant if he takes this job.

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