Permanent Or Contract?

[MeGustaXL]

Current job is Permanent, OK hours, salary is good, too.

Offered Contract work in same field, twice my current salary, 200 days contract => one year, with possibility of extension.

Contract could pay off my mortgage in 2 years, whereas I'd have to stick at it for another 7 in my present job.

I'm 55: should I jump off the nice warm permanent bus into the cold churning contract sea?

This is in the UK, by the way.

 

[SQLSister]

That depends entirely on your level of comfort with risk. Even one year contracts can suddenly dry up. If you are risk adverse, don;t do it. I fyou feel you can handle the risk, it's apossibility. However, remember at your age, when the contract is done, you may face serious age discrimination getting another contract. You will also need to pay your own benefits so the salary is not really as good as you think it is. Cost out reitrement and medical and whatever other benefits you need before deciding to do this.

Questions about posting. See faq183-874

 

[Dagon]

You will need to consider whether you fall within IR35 or not as well. If you fall within it, I wouldn't bother because it will destroy your income to such an extent that you would be no better off than a permanent position.

 

[MeGustaXL]

Thanks for replying SQLSister

I've done a Pro's vs Con's, and it came out 6-3 in favour.

This is mostly because, as I said, I'm in the UK, so age discrimination is illegal, and we have the National Health Service for medical care.

I'd be liable for higher-rate income tax at 40%, but by registering myself as a limited company, that is reduced.

The essentials like tax, NI, fuel, rent, food, etc. take about 15K, leaving around 50-55K.

The 3 Con's are:

[tab]1. I'd have to live in 'digs' for three nights a week.
[tab]2. I'd have to leave my home at stupid o'clock on the Monday to drive 180 miles to work.
[tab]3. At the end of the year...What?



Chris

If yer see a Rook on 'is own, im's a Crow. If yer sees a flock o' Crows, them's Rooks - My Uncle Cecil

 

[MeGustaXL]

Hmm, thanks Dagon for reminding me about IR35.

I've read up a bit, and run it through IR35calc:

http://www.ir35calc.co.uk/

Still comes out at a nice wee sum, so I'm tempted, but trepidatious (real word? I hope so)

Chris

If yer see a Rook on 'is own, im's a Crow. If yer sees a flock o' Crows, them's Rooks - My Uncle Cecil

 

[Dagon]

It depends ont he skills you have as well. If the market for your skills is strong at the moment and likely to stay so for another couple of years at least, then it may be worth taking the gamble.

For the record, I only intended to do two years of contracting and thought the market would have dried up by then. I've been going for 13 now...

 

[MeGustaXL]

The market for my skill is expending, and is likely to grow, particularly in my present field of employment.

I enjoy what I do, to the extent that it's more of a hobby really, and I had a nice dream of ticking over until my mortgage is paid off, then maybe cut my hours to earn some 'beer vouchers', say about 7 or 8 years.

Now this great big carrot has been dangled in front of me, and I'm scared that it'll be yanked aside to leave me wobbling on the edge of the unemployment precipice

 

[MeGustaXL]

Of course, 'expending' should be 'expanding - D'Oh! I'm a Perfeshinal, Me - H'Yuk!

Chris

If yer see a Rook on 'is own, im's a Crow. If yer sees a flock o' Crows, them's Rooks - My Uncle Cecil

 

[PatrickIRL]

Having done the contracting thing for 6 years and now doing the corporate thing I have to say I was much happier contracting. The diversity did it for me, don't like this run of the mill stuff where it's the same every day.

On the downside, my biggest bugbear was holidays which is a double-hit. You take 2 weeks off to go somewhere, you don't get paid but you still have to pay for the holiday. Sick days also have to taken into consideration (not days that are sick, just you sick on a day!!)

Yes the money can be good and a limited company is definitely the way to go, you can make major tax savings.

All in all it's worth it, a great experience but at the end of the day, as you stated earlier, you have to ask yourself "What next??"

Good luck whatever way you go.

Patrick

 

[GwydionM]

I'm 55

So no.
I tried it in my 30s, found it wasn't as favourable as it looked, was still young enough to get back into permanant employment.

------------------------------
An old man who lives in the UK

 

[kHz]

Contracted and liked it. Went corporate and was okay. Now back contracting. For me I really do like it.

You are kind of removed from the politics and can stand back and just listen but not partake in everyone's gripe about this or that or somebody.

I think it all averages out in the end. But I like the fact if I put in overtime I am paid for it. But then again, if you take vacation you don't (unless you work for a firm that does pay you for vacation. but pay would probably be lower than not taking vacation pay because they have to compensate somehow.)

If I could do contracting until I retire I would. Just have to see how things work out.

 

[Dagon]

In my experience, permanent jobs are not that permanent any more. The company for which I'm working at the moment just had its latest round of redundancies and there will doubtless be more when they really get going with the outsourcing. On one contract, I had dinner with my agent and the project manager on the first day. By the time my contract ended 18 months later, both of them had been made redundant.

 

[MeGustaXL]

Thanks for the advice everyone!

Alas, I missed the boat, and the job's gone to 'another candidate' before I even got an interview: or maybe , who will ever know?

 

[lb63640]

It wasn't meant to be. The good Lord above knows what's best for you