[lostboys67]

Don't think housing is cheaper in London than SV - its just public transport is better allowing for a longer distance commute

Interesting but a contractor on 100k is only equivalent to circa 45k as a FTE using the 3x rule I would expect a contractor rate for a FTE of 80k to be in the 200k range.

Also do they offer the same value in share options /rsu's etc. that SV companies do

[goobynight]

That's not how the 3x rule works. You don't use the 3x rule to compare yearly compensation.

[desarun]

Note that all of this is UK based.

Startups in London will offer shares for senior positions in much the same way as San Fran, normally with a vestment period, but it's not as common.

I'm not 100% on what the 3x rule is.

What I do know is that most of my contractor friends are on around £500 per day, which assuming a 260-workday year is 130k. There's a couple of oracle DBA's on around 800pd, which is 208k.

But then you have to administer a database & there's only so much I'd be prepared to do for money.

As a contractor, normal tax rules don't apply (and are normally much more beneficial). So a contractor earning 90k & a FTE earning 90k still results in the contractor coming out miles ahead in terms of raw income.

Obviously there's offsets to this. No sick pay, no paid leave, no free pension contributions etc.

[nikon]

A typical year would more likely be 220-230 workdays a year, maybe less if you have gaps between short term contracts.

Also, the dividend tax has closed the gap a bit, along with the flat rate scheme being effectively killed.

[lostboys67]

The rule of thumb I was told for contractors is you calculate your day rate by multiplying your FTE rate by 3

Though you have to watch for IR35 a lot of contractors would fail ir35 and be stuck with a huge tax bill

[tmat]

In my experience so far and what I was told was bank on 1000hrs worked in a year.. figure out how much you want to make in that many hours. You need to triple your FTE salary because insurance, taxes, and savings(401k)). For me that comes to about $105-125 an hour.

My experience is that your price is set by how much work you want. When I first started I had a really low rate, and I complained to a much more seasoned freelancer that I had to much work.. and he responded with something that seems so obvious now, but at the time I didn't even think this way. He told me, "If you have to much work, you aren't charging enough." So over the next 3 or so months I kept raising my rates until I found a happy medium between the # of clients I have and how much I'm bringing in.

My work has benefited from it because I'm not having to work 50hr weeks to make the same amount of money. The hours my clients are getting are much higher quality, and my work life balance is sane.

[tmat]

in the US in my first year, full time contracting I did 130k on right at 1200 hours worked.

I'm on pace to do the same this year working mostly 20-30hr weeks. The rest of the time I'm spending working on my own projects and hopefully generating some recurring revenue.

Not looking to be the next big thing. I'm completely ok with a "lifestyle" business as people call it in SV.

I did this from my remote bunker nestled in the mountains of Vermont and am completely satisfied with that.

[lostboys67]

did you know that boring FST100 companies like BT offer shares to all staff? if you had maxed out a share save scheme a few years ago you would have made over 150k tax free?

[desarun]

I do. As a guy contracting for a FTSE 100 company now who've just had a buyout offer from the states, I'm surrounded by a bunch of execs that are incredibly happy (assuming it comes off)