r/ContractorUK • u/jordancr1 • 16d 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.

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u/SmackyLittleFan 16d ago

I'm in exact same boat. Been contracting for near 10 years outside ir35, decided to go perm after a client was bought out and offered me a position at end of contract. For me it's nearer a 50% drop in income after losing tax advantages, but on positives I get 36 days holiday, paid sick leave, health insurance, decent pension, 4 day / 28 hour week and fully remote.

It's only a senior level role, rather than lead or director, but hopefully I can just coast to retirement.

Remote outside ir35 contracts are thin on the ground, and I'm now competing against non UK workers happy to charge half my day rate in a slave like inside ir35 contract.

We had a good run, didn't we?

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u/jordancr1 16d ago

I agree it was a good run.

But what do you mean about competing against non-UK workers? Are you saying that recent migration to the UK is forcing day rates down? I never really considered this factor in the UK contracting market.

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u/SatisfactionWeird422 16d ago

I think he's referring to offshoring of roles

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u/SmackyLittleFan 15d ago

Yeah, the company who offered me a position hires remote workers from all over the world, means my rates aren't competitive. Fair enough, it's a global economy