What is Better 300£ Contract or 50K Permanent

Hi

I am in a bit of fix as can't really decide with so much information available and need to take a quick decision, so thought to ask my dear folks out here.

I have a choice between 300£ daily rate as a contractor(I will be a first timer) and a 50K Permanent.

I am on Tier 1 Visa so 1 Extension is due (minimum Salary to be shown is £35000) and then ILR.

Can someone guide me to clear links or explain here what will my Take home be given I need to make sure I earn 35K for my Visa extension.

Thanks

£300 per day contract would get you more money then £50k on payroll.

I am a qualified accountant, give me a call to discuss more 07886013504.

plenty of calculators available online... do search on contractor websites....

try this: http://www.thesalarycalculator.co.uk/

The salary you have to show is not take home pay, it is based on your gross. So you can take your salary and divide it by 12 to get your monthly gross and then calculate what you can show from there.

The choice between permanent and contracting is a personal one and depends on the risks you wish to take. Personally, I would go for the permanent role as contracting is just getting riskier as an immigrant. (Thinking about the problem of being unable to travel while in between contracts and the new report from Labour saying that companies shouldn't employ immigrants - it's bound to become more than just that).

Thinking about the problem of being unable to travel while in between contracts

@muldepf - Why is this a problem to travel in between contracts?

@Zeon14,
do a google of "pros and cons of contracting - Allen Kelly" a highly recommended read, imho.

Here is also a post from the past when I was in a similar situation, having to decide between a contract or a permanent position.
http://www.immigrationboards.com/viewto ... ht=#494163

Another discussion in similar lines,
http://www.immigrationboards.com/viewto ... ht=#464306

ps: Ideally this is a post for "Employment offers and Job seekers"

Zeon14 wrote:Hi

I am in a bit of fix as can't really decide with so much information available and need to take a quick decision, so thought to ask my dear folks out here.

I have a choice between 300£ daily rate as a contractor(I will be a first timer) and a 50K Permanent.

I am on Tier 1 Visa so 1 Extension is due (minimum Salary to be shown is £35000) and then ILR.

Can someone guide me to clear links or explain here what will my Take home be given I need to make sure I earn 35K for my Visa extension.

Thanks

Hi

It is a question of whether you like risk vs stability in reward for more/less money. Most contractors operating independently are seasoned in that aspect, and they would have built a 'cash pot' to offset the risk of employment gaps and potential non-income periods. For starters it is not easy.

Also, you have not mentioned how long is the contract initially for on £300pd ?
That will be a vital decision making factor.

If the contract is for 12 months, I would advise you to go for it.
Becuase, you would make easily in the region of £55K- £60K after tax (whether operating via limited company or umbrella company)

On a £50K salaried perm role(assuming no other benefits), you would get £36K after tax. i.e roughly 29% goes as tax and NIC.

However, there is more guarantee the job will continue into 13th month. So basically it is your call.