Contracting vs Permanent.
There are a lot of nuances regarding which is "better" suited to a person at a particular point in time, but here are some pros and cons that I have found over the years:
Outside IR35 Contracts:
- + Can be lucrative with a good amount of experience
- + More flexibility
- + Work to your own schedule
- + Varying types of work/projects
- - No company benefits
- - Changing positions often / little stability
- - Managing your own taxes and finances/ more paperwork
Inside IR35 Contracts:
- + Can be more lucrative than Perm if your rate is high enough
- + No need to manage own taxes/paperwork. Typically work through an Umbrella company.
- - Less lucrative than Outside for the same rate
- - Working to client schedule / no time flexibility
- - Typically no company benefits (depends on the company/agency)
(this is kind of a halfway house where you're not considered an employee by the client, so you don't get the benefits of being one. But you're still treated as one for tax purposes. So the worst of both worlds. Best considered for a high enough rate or an awesome enough company/experience.)
Permanent roles:
- + Stability
- + Financial planning is arguably easier
- + Stock options / RSUs (if available)
- + Company has an interest to invest time/money into you
- + Other company benefits
- + Easier to grow and larger long-term impact
- - Less time flexibility
- - Could be leaving annual income on the table for your skillset
Among many other pros/cons I haven't listed above.
It's worth noting these are based on my ideas of pros and cons. For example, having varying types of work is something I listed as a +ve, but others may prefer working on the same thing long term.
All three of these have their place and time. Making an informed decision about which to pursue includes understanding what's important to you, at that point in time.