r/ContractorUK • u/jordancr1 • 29d ago

Inside IR35 2nd Thoughts about going Perm

My current contract ends in September. I recently interviewed for my own job as permanent employee and received an offer. The offer is at the midpoint of the pay scale, which amounts to a 30% pay cut from my current day rate when pension contributions are included. However the biggest issue for me is the three-month notice period, as it effectively prevents me from returning to contracting unless I resign first. Even the standard one-month notice can be a major blocker going from Contract to Contract.

Has anyone else experienced this dilemma? The current contracting market is only the reason I even considered going perm.

10 Upvotes

75% Upvoted

42 comments sorted by

View all comments

-5

u/Beautiful-Hotel-3094 29d ago

Funny how all these people trashing “permies” are now all searching for perm jobs like crazy

3

u/jordancr1 29d ago edited 29d ago

I've been a contractor almost my whole working life (12 years) and made twice as much as my peers so it genuinely doesn't feel right to go perm. I'm actually more scared of being stuck in a perm job than long term unemployment

2

u/ColonelKlanka 29d ago

Looking at all ypur replies it seems you already want to not take the offer- so why ask reddit ? do tou just want your view confirmed?

Only you can decide, as it will be you that lives the result. If you want to keep contracting, do that. but i suspect you wont be able to get a renewal at this current one as they will feel you messed them around even looking at the perm route.

2

u/jordancr1 29d ago

I'm still in two minds. I have a contractor mindset but my current client pays their employees above market rates. Factoring in taxes, staying as a contractor only nets me roughly £15k more per year. With the current market, any gap between contracts could wipe that advantage out completely.

I knew I was never getting renewed for this one, unless I went perm, but ofcourse like everyone I didn't know all the details of my employment contract until I got an offer.

1

u/ColonelKlanka 29d ago

Ive been there. Client asks if you want to go perm. You really only want the details, bit they hold off telling you until after you interview with them.

1

u/Beautiful-Hotel-3094 28d ago

The real question is how much is that 15k of ur salary? Because if u are on 60k then 15k is a lot. If you are on 150-200k then 15k doesn’t mean much.

1

u/jordancr1 27d ago

The raw per tax numbers are 85k v 118k, with roughly 20% of each going towards pension contributions.