I'm hoping the FD can explain. I know other freelancers in the same line of business to whom I can talk too. I know you can't stay in the same place for ever. I'm not actually looking at it for financial reasons although a hypothetical day rate of
£350 does look quite appealing on the face of it
Don't forget to factor in the normal employment benefits you forgo as a contractor:
- Holiday pay
- Sick pay*
- Pension and associated life insurance
- Continuous vs Gaps between contracts
* A few years ago my wife had a nasty skiing accident and spent the best part of 3 months off work on full pay. On this year's ski holiday, we crossed our fingers!
Plus accountant and business running costs
Don't just compare day rate to TFE salary equivalent.
IMO, it works best for people like my wife:
- Kids launched
- Pension fully funded
- mortgage paid off
- Spare cash already in the bank
- made redundant on good terms
All of which means that contracting income = end of career bonus with no pressure.
The one downside for us is that "I'll take a day off, let's go to lunch" now costs £350 before lunch starts.
A fortnight's holiday is £3500 before you leave the house
Make sure you get your head around all these issues before going for it, it can be fantastic!