Discussion
am currently looking for a permanent IT Managers vacancy in London but with the market a bit shite at the mo was looking at a 6 month contract that i might be offered soon till the market improves. having never done contracting couple of questions:
1) Is there any major advantage / disadvantage cw permanent?
2) if i was paid eg 40k pro rata is that the same as earning that amount as permanent after tax etc?
3) do u get holiday entitlement?
any advice gratefully received thanks
1) Is there any major advantage / disadvantage cw permanent?
2) if i was paid eg 40k pro rata is that the same as earning that amount as permanent after tax etc?
3) do u get holiday entitlement?
any advice gratefully received thanks
billb said:
am currently looking for a permanent IT Managers vacancy in London but with the market a bit shite at the mo was looking at a 6 month contract that i might be offered soon till the market improves. having never done contracting couple of questions:
1) Is there any major advantage / disadvantage cw permanent?
2) if i was paid eg 40k pro rata is that the same as earning that amount as permanent after tax etc?
3) do u get holiday entitlement?
any advice gratefully received thanks
allsituations vary, but normally you'd be acting as a ltd co, so:
- no hols, sick etc
- you'd be responsible for ers NI, which would hit the take-home a bit (and is also uncapped, iirc).
Contracting (always used to) command a premium for these reasons and others.
Usually you wont get holidays (never heard of it before 206's post)
Ditto sick pay.
You wont get any benefits like pension, health, etc.
You will have to pay employers NI as well as employee's NI
You will probably have to set yourself up as a Ltd, Vat registered company, unless you go under an umbrella company (depends on your client ... I always seem to end up working for major companys (e.g. PO) who insist on Ltd/Vat).
You will have to pay an accountant (varies between 50 and 100 quid a month, depending on how much work you want to do yourself .... I subscribe to the "you get what you pay for" philosphy and have an expensive (but bl**dy good !) accountant)
On the good side, however :
You'll probably get 2x (or more) what you'd get as a permie.
No office politics to worry you, much less stress in general.
Ditto sick pay.
You wont get any benefits like pension, health, etc.
You will have to pay employers NI as well as employee's NI
You will probably have to set yourself up as a Ltd, Vat registered company, unless you go under an umbrella company (depends on your client ... I always seem to end up working for major companys (e.g. PO) who insist on Ltd/Vat).
You will have to pay an accountant (varies between 50 and 100 quid a month, depending on how much work you want to do yourself .... I subscribe to the "you get what you pay for" philosphy and have an expensive (but bl**dy good !) accountant)
On the good side, however :
You'll probably get 2x (or more) what you'd get as a permie.
No office politics to worry you, much less stress in general.
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