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Original poster

should i leave a permanent job to take up a contract instead?

32 replies

bossykate · 01/05/2007 16:03

eek - decision time. if it were a perm post i would jump at it. but am a little nervous at the thought of contracting. very grateful for any advice.

thanks in advance

OP posts:
expatinscotland · 01/05/2007 16:07

Go with your gut.

Original poster
bossykate · 01/05/2007 16:14

am bad at "gut" feelings - am a born analyser...

OP posts:
oranges · 01/05/2007 16:20

is the contract for a dream job?

Summerfruit · 01/05/2007 16:21

Message withdrawn

Original poster
bossykate · 01/05/2007 16:25

thank you

lol @ dream job! my dream would be not to woh!

it's arguably a better job than the permie one i have now...

they have said they aim to make it permanent...

OP posts:
throckenholt · 01/05/2007 16:25

fast forward to the end of the contract - would you be happy to be unemployed after it - or would you prefer to still be doing your job you have now ?

How likely are you to be able to get another contract in a similar field following on from it ?

Original poster
bossykate · 01/05/2007 16:26

crikey i think i would be very unhappy to be doing the same job as i have now in a year's time.

if i save up, i could have a period of not working at the end of the contract...

OP posts:
Original poster
bossykate · 01/05/2007 16:29

i would be able to get another job i'm pretty sure. i don't think my job security is that good in the job i have now...

the issues are things like:

  • pension
  • sick pay
  • holiday pay
  • health insurance
  • training etc.
OP posts:
Original poster
bossykate · 01/05/2007 16:30

life assurance...

OP posts:
PetronellaPinkPants · 01/05/2007 16:32

You can get all those things yourself as a contractor

try www.contractorfinancials.co.uk

They do products specifically for contractors

batters · 01/05/2007 16:55

This reply has been deleted

Message withdrawn at poster's request.

batters · 01/05/2007 16:56

This reply has been deleted

Message withdrawn at poster's request.

Idreamofdaleks · 01/05/2007 17:06

Are you being offered twice as much?

Original poster
bossykate · 01/05/2007 17:29

thank you for these further comments

batters, i have been headhunted!

it has all come from a clear blue sky.

in purely cash terms the increase amounts to 70% more than permie. do you think it should be double? a friend of mine said you should be aiming for double what you would get as a perm...

OP posts:
Idreamofdaleks · 01/05/2007 17:34

would doing this job make you more employable than you are already? Are you likely to have gaps between contracts?

Original poster
bossykate · 01/05/2007 17:36

the job would be good for the CV. in terms of gaps - i just don't know - this would be my first contract, hence my nervousness. i feel confident that i would find other things - but whether there would be gaps i just don't know (would expect to save a lot to cover gaps).

OP posts:
Original poster
bossykate · 01/05/2007 18:14

.

OP posts:
Idreamofdaleks · 01/05/2007 18:16

If it would be good for your CV and you fancy it then take a deep breath and go for it!

Work out what the difference would be on your take home pay, factor in unpaid sick/holidays/employers pension contributions/ other benefits and see how long a gap between jobs this would pay for

tribpot · 01/05/2007 18:30

A friend of mine is in a similar position right now, although her wish for contracting is more to do with being absolutely mortgaged to the hilt and the sole owner for her family (her dh is chronically ill like mine). Things to think about are:

  • how will you survive financially til the first invoice gets paid?
  • how will you survive financially if the first invoice doesn't get paid? (Disputes over invoices / payments can be depressingly common)
  • are you aware of the tax implications of contracting in the UK? (Assuming you are in the UK) If this is your first contract I'd suggest an umbrella company might be useful as they can take up a lot of the burden in terms of tax, NI, invoicing, etc. - but at a cost. Mine were pretty good (based in Switzerland so not really relevant for here) but took a percentage of my earnings for the privilege.
  • what will you do next? Is your job market fairly buoyant so that if you needed to go permie again at the end of this contract you could do?

Personally I would say go for it, esp as you've been headhunted. That's a positive sign and, particularly if there's another steady income in the household, it can be quite a lot of reward for not too much risk.

batters · 01/05/2007 20:28

This reply has been deleted

Message withdrawn at poster's request.

Original poster
bossykate · 01/05/2007 20:46

hi everyone thanks for these new messages.

tribpot - excellent points. we have enough savings to cover a gap. i think there is little credit risk. i would use an umbrella company to begin with. i work in investment banking in IT. the market varies but is good atm - i have a good cv and am pretty employable.

batters - they have agreed to a 10am start and are making positive noises about flexible working. project management lends itself to flexible working anyway - if you do it right!

OP posts:
PetronellaPinkPants · 02/05/2007 09:59

If you can get your contract outside IR35 then you would be better off setting up your own company if you don't need to take all the money out every month. Essentially you pay yourself a small salary say £10k, then you can take up to your higher rate tax band out in dividends which are deemed to be tax paid. So effectively you can take £3k a month out very tax efficiently. Any dividends above that amount get taxed at 25%. You also have corporation tax of course. Plus if you join the flat rate tax scheme you can get a benefit of 4% on your invoices. Anything you leave in can be taken out after two years and 75% of it will be tax free due to taper relief, plus you use your CGT allowance for the year so you get most of it tax free.

May I recommend SJD Accountancy who do solely this and are fantastic, for £85 a month they do it all for you

PetronellaPinkPants · 02/05/2007 10:00

here theya re

batters · 02/05/2007 21:31

This reply has been deleted

Message withdrawn at poster's request.

Original poster
bossykate · 03/05/2007 14:06

i have i'm going to go for it.

ppp - thanks very much for that link.

thanks to all for your help and advice

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