Which job would you choose?

missis_amber

Job 1 
Fixed for 12 months
Civil service
Attend office 1 or 2 times a week so commuting costs to pay
Payroll done same as permanent employees via PAYE
£60,180 per year

Job 2
Fixed for 12 months
Civil service
Remote working, no commuting costs
Paid inside IR35 via an umbrella company that does all the deductions and charges £12pw plus 
£401.90 per day

MalMonroe

Gosh, what on earth is Job 2? If my calculater is correct, that's over £105k per annum, is that right?

If that's the case then it's a no-brainer. And doing jobs with that kind of salary I should think you'd be able to suss out which is best without advice from we forumites. 

I'd have to go for number 2 (certainly no pun intended!)

Bearing in mind it's fixed for 12 months. 

(P.S. Are you a UK gov spy?)

Marcon

missis_amber said:

Job 1 
Fixed for 12 months
Civil service
Attend office 1 or 2 times a week so commuting costs to pay
Payroll done same as permanent employees via PAYE
£60,180 per year

Job 2
Fixed for 12 months
Civil service
Remote working, no commuting costs
Paid inside IR35 via an umbrella company that does all the deductions and charges £12pw plus 
£401.90 per day

If you're after cash, then Job 2 wins - not sure why you even need to ask!

They are both fixed term for 12 months, so neither is exactly a career move.

Savvy_Sue

That's assuming you get on well with remote working. not everyone does, at least not all the time. 

mcpitman

missis_amber said:

Job 1 
Fixed for 12 months
Civil service
Attend office 1 or 2 times a week so commuting costs to pay
Payroll done same as permanent employees via PAYE
£60,180 per year

Job 2
Fixed for 12 months
Civil service
Remote working, no commuting costs
Paid inside IR35 via an umbrella company that does all the deductions and charges £12pw plus 
£401.90 per day

Just a point on Job 2, are saying that they will only charge £12pw for payrolling c£2k.

Check those numbers, seem really low charges.

Wonka_2

Depends on the role type and whether you have longer term aspirations for a perm role

But as @malmonroe eloquently put it at if you can justify that level of salary you should be able to make a clear decision on your worth/desired outcome

Grumpy_chap

missis_amber said:

Job 1 
via PAYE
£60,180 per year

Job 2
Paid inside IR35 via an umbrella company that does all the deductions and charges £12pw plus 
£401.90 per day

The cost to the employer for both jobs is going to be a very similar total.

The OP needs to consider the full package in both cases. 

Job 1 likely comes with perks / benefits over and above the £60k. 
The big ticket item that will really make a difference is pension contribution / accrual.
The OP can use a salary calculator to determine the take home pay for their situation (student loans, country) but it will be around the mid-£40's k.

Sadly for the OP, the £105k suggested as the annual income for Job 2 is likely incorrect.  That calculation would require the OP to work 5 days per week for 52 weeks per year.
A more realistic calculation would be 5 days per week for 45 weeks per year (annual leave and bank holidays) so that works out to £90k.
That £90k from job 2 will include whatever pension contributions the OP makes plus employer's NI contributions.  The employer's NI calculation is rather involved, but that will be a figure in the region of £10k (or more) straight off the £90k.
The OP will have the option to reduce tax liabilities via Job 2 by making increased pension contributions.

The £12 per week for the UC is competitive, but quite plausible.
Can the UC provide the OP with a take-home pay projection for Job 2?  They usually do this for no charge and ahead of signing up.

It is quite possible that the take home will be in quite a small delta between the two options if total value of Job 1 is also considered (pension).

The other consideration is to then consider what will happen at the end of the 12-month fixed term in each case. 
If the OP is certain these are both fixed, that's that. If, however, there is possibility of the role extending (or migrating to another role) then the Job 1 will start to accrue time-served rights after the second fixed term.
Job 1 may have more training and development opportunities during the fixed-term 12-months than Job 2.

Good luck in working it out OP, and do update with your way forward.

Marcon

Grumpy_chap said:

missis_amber said:

Job 1 
via PAYE
£60,180 per year

Job 2
Paid inside IR35 via an umbrella company that does all the deductions and charges £12pw plus 
£401.90 per day

The cost to the employer for both jobs is going to be a very similar total.

The OP needs to consider the full package in both cases. 

Job 1 likely comes with perks / benefits over and above the £60k. 
The big ticket item that will really make a difference is pension contribution / accrual.

Sadly not that big, especially as OP is young enough to have an adolescent daughter.

If it's a 12 month contract (with no previous continuous or subsequent employment with the civil service), OP won't be able to build up enough civil service pension to qualify for a deferred pension. They could transfer out any benefits built up once they've completed the contract, but would need to do so fairly promptly, otherwise they'd only be entitled to a refund of their personal contributions, minus tax.

Grumpy_chap

By referring to the pension as the "big ticket" item that makes a difference to value of the package, I really meant that it was the thing to focus on.
Salary package might include things like gym membership or whatever, but all these items are relatively low value.  For most people, the two items that have a significant value are the pension and company car / allowance where offered.  Company car not common in Civil Service, so that means it is the pension that needs to be considered as part of the value proposition.

I did not see where the OP mentioned details such as family.

The thing with the PAYE role is to understand what might happen as the 12-monbth fixed term ends.