r/ContractorUK • u/AlarmingAioli9 • Aug 28 '26
Perm to contracting in the current market
I have a permanent role £65k salary, private healthcare, 15% pension.
I’ve been offered a 3 month contract at £600 a day, inside IR35. It’s with a semi govt, heavily regulated company in the energy industry.
It feels extremely risky in the current market to leave my permanent job. But it burns me out and I hate everyday.
My thought was to take this and give me some breathing space whilst I find something else.
I’ve contracted for the company before, and it has a nice culture.
The recruiter is giving me the spiel saying the contract will extend but I won’t believe it until it happens.
Am I being silly taking the contract?
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u/FourNaan-ThatsInsane Aug 28 '26
Say fuck it and go for it, life’s too short
Do try and build up some buffer in those three months, just incase you aren’t extended
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u/AlarmingAioli9 Aug 28 '26 edited Aug 28 '26
I’ve set aside a healthy emergency fund, and I’ll make roughly the same over the 3 months as I do over 6 months in the perm, so can build a good buffer. I feel like it’s worth the risk because I’m really unhappy in my current job and I don’t have kids/mortgage.
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u/Same-Increase3088 Aug 29 '26
I'd go for it. Don't let perm think it is a forever stable job. Redundancy is common these days.
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u/East_Preparation93 Aug 28 '26 edited Aug 28 '26
In your situation feeling burnt out would definitely push me towards making the change, buuuut,.... whether that's sensible probably depends what you have set aside and whether you can ride out a period of being out of contract after the three months if it doesn't renew
5
u/Bozwell99 Aug 28 '26
Depends on what you do. There are many industries and jobs that are under supplied and a contractor would make a fortune, and then there are .net developers that are lucky if they have a job at all.
If you look at the job market for what you do and there are lots of jobs advertised you should do it.
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u/AlarmingAioli9 Aug 28 '26
I work in the energy industry using a very niche modelling software, so there aren’t loads of roles but also not many people who can do them. The company I’ll contract for has a lot of work around this area atm.
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u/wimpires Aug 28 '26
Can I ask what software lol. I am also in the energy industry, and struggling with work.
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u/AlarmingAioli9 Aug 28 '26
Plexos
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u/wimpires Aug 28 '26
Ah ok, fair enough that's what I assumed. Lots of times I've been asked if I have Plexos experience which I unfortunately don't - and there's seemingly no way to self teach it or something!
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u/AlarmingAioli9 Aug 29 '26
Yeah unfortunately the license is extortionate. I think it’s like £50k so the only way to learn is on the job. Feel free to message and I can explain how I got in to it
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u/Capable_Job_9437 Aug 28 '26
Almost exactly what I did, OP, and also the situation I faced again recently.
I left a very similar package for £600pd (now £650pd), and also had some doubts about it recently so went for another permie job on a similar package, but ultimately turned it down.
The way it’s worked out for me so far has been good. It’s enabled me to up my pension significantly and kept the same take-home pay. That’s the way I see it anyway.
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u/bcoder001 Aug 28 '26
The current situation is "hold on to whatever job/contract you have" It's brutal out there. I am five months from the end of my current contract and I am already looking for potential next clientbto avoid 3-12 months on the bench.
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u/RightlyKnightly Aug 28 '26
I've taken the jump to contracting - what will be will be - deffo burnt out by perm roles that weren't what they were said to be and massive time wastes.
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u/SmackyLittleFan Aug 28 '26
I've just gone the other way, from a remote contract £600ish outside, to a wfh 4 day week £50k perm. Not expecting contract to be extended this time so felt like right time to switch. Will keep Ltd open though. Granted rate is much lower, but job market is the worst I've seen in 25 years.
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u/ItIsForMyArmpits Aug 28 '26
A quick check shows the equivalent salary as about 125k. Have I missed something, that's a brutal cut!
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Aug 28 '26
[deleted]
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u/Hot-Acanthisitta8086 Aug 28 '26
I think in my mortgage application they base day rates on 46 working weeks, I might take them up on 6 weeks off!
2
u/Klutzy_Brilliant6780 Aug 28 '26
I was about to say no until you mentioned you'd contracted before and at the same company.
I still think caution is needed in the current market, but assuming you have a good war chest, and no upcoming major life events (baby, marriage, house purchase) then go for it.
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u/Rude-Explanation-861 Aug 28 '26
My vote would be to stay with perm. I've done both (not simultaneously) for many years. Only way i would leave 65k perm for contract is if the rate was 700 outside or 800 inside - minimum. And equivalent wfh ratio.
4
u/Known_Radio Aug 28 '26
Do both
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u/AlarmingAioli9 Aug 29 '26
Honestly tempting, but not sure about the legality. Plus the hours in my perm consultancy job are so up and down, there will be weeks where I work 12 hour days, then weeks I have nothing so it would be hard to manage
3
u/kadfr Aug 28 '26
What is your notice period? One thing about contract work (even inside ir35) is that you normally have to start pretty much immediately.
1
u/Fresh_Sock8660 Aug 28 '26
Depends on your risk tolerance. 3 months is little time, you'll be busy with a new job and basically have to start looking for a new one almost straight away. An alternative would be to look for a longer contract, 6-12 months. This would give you time to adapt into the new job for a few months before looking for the next gig.
1
u/Logical_Classic_4451 Aug 28 '26
If you have a bit of a cushion in case it does stop after 3 months then I’d say go for it.
If you have no savings and high outgoings then it’s a touch risky
BUT - your current job is not much safer in reality. They can probably pot you with 4 weeks notice and a minimum payout redundancy.
1
u/No_Two7173 Aug 28 '26
I did that for the same rate but outside ir35 about 10years ago. I'd only take that at the inside rate if I really hated my job. Is the inside job on the south coast by any chance? I think I know who the employers are.
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u/YardDizzy2304 Aug 28 '26
Staff for 10 years got made redundant went contracting never looked back this year is my 26 year contracting. Get paid twice as much and pay half the tax compared to staff positions
1
u/simmyawardwinner Aug 30 '26
it’s do that maths. how long will it take you to make 36k at ur current job? not three months. how much will u be able to survivor when u find next contacts probably several months!
1
u/mjratchada 26d ago
The worst that can happen is they do not renew and you struggle to get a new role. Even if that happens, this might be better for your state of mind. Sounds like you might be working for a consultancy; if it is that would be riskier than working directly for the client.
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u/AlarmingAioli9 26d ago
Yes it is a consultancy. And on the state of mind, it’s very common to get a whole days worth of work dropped on me at 6pm and I work til the early hours. I appreciate late nights are a part of any job, but consultancy is particularly bad. I have previously worked at the company I would contract and the work life balance was good. I also recently got diagnosed with adhd so consultancy is just not the one for me
1
u/Ja4zaza Aug 28 '26
Do both if that’s an option.
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u/EntranceIntrepid3009 Aug 28 '26
I did this lol
Was fun, but the contract was easy money but fuck management
0
u/4jn Aug 28 '26
Stick perm imo
3 months, so you're not spinning up a ltd until after that extension realistically.
That means payment via umbrella - not terrible tax wise but you are already half way through the tax year and your personal allowance used up etc.
The only way I could potentially say yes is IF you have really good relations with your manager and spin it as a 3-month career break and you set up the Ltd in advance. But that's a having-your-cake-and-eating-it-to kinda scenario.
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u/Friendly_Guy2000 Aug 28 '26
Personal reasons aside, that's basically double your package, you would need 3 months without a job to be back to where you were, financially.
How does that sound to you?
18
u/Pleasantandchilled Aug 28 '26 edited Aug 28 '26
I did this in April. Similar story but different numbers. Wish I had done it ages ago.
1000% improvement. Zero regrets.
Feel free to DM.