Should I switch from permanent to contract?

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Should I switch from permanent to contract?

As a Cloud & IT Infrastructure professional, the successes in your career revolve around finding the right opportunities at the right time.

For most, this means searching for permanent roles with the top IT solutions providers. To add value over many years, embed yourself in the culture and become a part of who they are.

For others, this means using niche Cloud & IT infrastructure skills finding contract roles.

Should you consider switching from permanent to contract?

Owen Harris has some great advice on whether the move could be right for you:

“If you’re in the industry, you’re aware of everything going on with IR35 at the moment.

Here at InfraView we source candidates for a mixture of roles between permanent and contract, so we know the benefits and disadvantages of both job types.

Permanent roles are more stable with a fixed salary. This could also include a bonus or car allowance as well as other benefits depending upon the role you’re in.

Contract roles are paid as a daily rate. Typically Cloud & IT Infrastructure contractors earn more than the equivalent permanent staff. This of course comes with the caveat of less stability, however it is far more flexible than permanent roles.

At the moment within the Cloud & IT Infrastructure market, contractors are beginning to see changes in structure due to IR35. This means moving from operating within your own limited company, which contractors are used to, to working under an umbrella company meaning you pay more tax as a result.

Alot of contractors are asking me if they should remain as a contractor and operate within IR355, wait until I find roles outside IR35 or should I go permanent?

My advice is to not think about the money too much right now.

Instead, think about the role.

If you are a consultant, an architect or an engineer and want to start a new chapter of and progress through your Cloud & IT Infrastructure career at a stable business with a fixed salary and bonuses, then a permanent role would be great for you. You would be able to work your way up through the business, becoming more senior and acquiring new skills.

However, there isn’t much of a gap any more in terms of daily rates and permanent employment salaries if you’re going to operate within IR35.

When I talk to candidates I use an IR35 calculator to see how much they can expect to earn, or by how much they need to increase their daily rate to compensate for these changes. However, many businesses aren’t willing to pay higher daily rates for these roles.

So it’s crucial to think about your motivations, weigh up your options and the benefits and disadvantages of making the switch.”

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