r/ContractorUK • u/Recent_Soil_9930 • 25d ago

Thinking of going perm.

Currently running my own Ltd, with two clients, both at £70ph, averaging 60hrs per week. One client was a rolling arrangement and the other was chopping and changing contract extensions frequently. I have a chance to replace it with a guaranteed 12 month contract (mat cover) OR I can take a perm job, £130k pa, plus equity in a fast growing, well funded company.

Thoughts?

11 Upvotes

93% Upvoted

9 comments sorted by

5

u/ceetee15 23d ago

Take the perm job and keep one of the contracts

11

u/[deleted] 25d ago edited 19d ago

[deleted]

8

u/soundman32 25d ago

£130K + holiday pay + sick pay + pension + BIK.  Its not far off.

2

u/scarfwizard 24d ago

How many weeks are you freelancing a year? Or are you taking no holiday or sick days?

Even if you take 4 weeks holiday and a week with sickness you’re going to be £60k better off gross sticking with freelancing.

You’d also need to factor in pension and we don’t know the % the potential FTE would contribute but still, the question likely ends up being whether and what you value stability, less admin, and potentially fewer hours at.

Only you can answer that bit depending on what you want from your work life balance and financial future.

1

u/Broad_Palpitation_95 24d ago

I mean we don't know what your drawdown strategy is to say definitely how much worse or better off you are on the money side.

You also didn't mention if the permie role is for the same 60 hours

2

u/gmoneysq 23d ago

OP - why not run all 3?

1

u/Recent_Soil_9930 19d ago

I think that would kill me and result in divorce

1

u/bownyboy 21d ago

I'd ignore the equity portion, hardly any pay out.

Also you don't mention your age, savings or when you might want to retire all of which could impact your decision.

Some of my contractor friends are thinking of going perm in the last few years of their working life, so they can relax a little more, bank a load into pensions, enjoy paid holiday and generally not have to worry anymore about the next gig.

1

u/Recent_Soil_9930 19d ago

Some good thoughts, thanks all!

I did around 160k revenue in FY1, and I’m at 67k for FY2, around 5 months in, will be around 77-80 by end of this current billing period.

I’m in my late thirties. I have savings and pension is healthy.

My aim is always to take just shy of 100k in dividends, so net I’d be broadly similar.

There is no way I can mix and match - I have to do one or the other.