Permanent role vs Contractor

[Thatusernamewastaken]

Currently debating leaving my permanent role and becoming a contractor but unsure.
Been in current role for around 7 years. Pay is pretty good, but nothing spectacular. Work culture is quite chilled, though has its moments.
As a contractor , and working through an umbrella company etc, could earn around 3 times what I am now. Work does seem to be out there, and there are 18 month contracts about, though 6 month contracts tend to be more the norm.
I am the main earner, and partner works PT, bit in savings to fall back in if needed.
Just finding the lure of 3 times what I earn now, especially with rising costs more alluring, but it does feel risky….
What would you do?
A. Stick with current employer and job
B. Go for more money and potentially more risk

C. Get a better paying permanent job.

The length of the contract means sod all - the end client can pretty much show you the door with zero notice. Also be aware, via an umbrella, you will be liable for Employers National Insurance as well as Employees National Insurance. Plus no holiday pay, sick pay, travel expenses, training, or pension (although the brollie will offer a very basic one)

Not sure there is much prospect of earning too much more than what I do now in a permanent role. Have recruiters contact me pretty regularly and more pay would be maybe 8-10k a year, and require relocation/some time on site. So not really worth it. My particular role is pretty specialist in my area.

Yeah, the promise of a particular contract length on some roles seems pretty dubious as we’ve dropped contractors at the drop of the hat if they’ve not been up to it.
The small amount of time I’ve spent researching/using online calculators takes in account the employers and employees NI, and am still looking at nearly 3 times what I’m on now (dependent on agreed day rate etc).

I am contractor - it felt v risky when I did it!

I am in a v specialist area for which there is a shortage. Turns out I am emailed all the time offering me jobs, when I was permanent I had imposter syndrome.

The money is a lot better. Yes, there is no sick pay, I have to pay my NI, pension covering employers as well but the money is still better.

The job is also different as a contractor - it's more fun, you don't get involved in tedious permanent office politics, people are grateful you are there and don't take you for granted, they know you can leave tomorrow.

I think one of the issues I’m finding in my current role is, I basically work in software development, and have new projects I’m involved in every year. Work with business analysts etc BUT as the company is quite small, I end up just supporting each project I work with indefinitely, so stuff I built/designed 7 years ago comes back to me to do extra developments on, on top of all the new projects I’m working on, so I just carry more and more as the years go on. There are various reasons why this shouldn’t be the case, but it is, and has been for ages and is never going to change. At least if I am a contractor working on different projects I move on and do not become some front line IT support as well. I stay as a developer, which is more want I want to do.

I do a very very different job to you, but I found the same.

Being a contractor - you do your job, that's it. If it's not your job, you don't do it. At the end of the contract - you've left!

Permanent I was doing everything and more.

It's made me actually enjoy my job again.

Depends on a number of factors:

1. If your age is close to or older than 55, the prospect of sacrificing salary as pension contributions can make a significant difference


2. Employer's NI contributions will make you a very big taxpayer - I'm paying the wages of two nurses, which is the price of society, but hurts.


3. Are there perks or flexibility in your job that will be difficult/impossible to get?


4. Can you think like a contractor? I have been a contractor for most of my working career, but often find tensions between my professional viewpoint and what would be most profitable for me. Irrespective of initial term, I tend it get long engagements, partly because I won't jump ship for an extra £100 a day if it involves leaving the current client in the lurch. My wealthier colleagues, will bolt in a heartbeat.

Good luck.

I've been a contractor for 1 year now. It's fairly typical to run on 6 monthly contracts from what I understand.
I'm enjoying the type of work I'm now doing, as well as the excellent pay. I have probably another 6 months in this role, but would be keen to do another contractor role when this ends. Some contractors I know have been in place for over 3 years.
You do have to save aside a chunk of the money in case your contract comes to an end, to cover sickness and holidays etc. It is risky, but for me I had nothing to lose as had been made redundant due to my employers collapse, but it has worked out really well for me.

My DPs DS is a nurse. Was really miserable with the amount of hours she was working. Left and went for another job not in the nursing field. Wasn't happy either, went back to nursing as a contractor. Makes way more money and gets to pick her days. Now works 3 days a week and is much happier and more financially stable! Xx

For those who are currently contracting, can you recommend a website / company where you find your positions?

Try Googling employment agencies in and around your area. That's the best option. Xx

Oxford Knight are a good agency.
Would say make sure you start up a private pension as soon as you start contracting.

Private pension - yes, you are paying employers contribution, on the other hand there are a lot of tax breaks.

Tax - count everything you can as a business expense. An accountant will advise you, there are apps to manage receipts. It was a whole new world to me.

Thanks to everyone for your responses. Much appreciated. There have been a few roles come up that I think I will enquire a bit more about this week and get a few more details. Definite pros and cons, and am still 50/50 at this point. Anticipating a nightmare week at work so maybe that might sway it! 😂