Thats always a difficult one, I am exactly in the same position and I have decided to go perm. I think contracting is great for money and I was offered the same daily rate as you which would effectively mean you could take home a net of £85k if you setup your own company (yes it was a hard decision to make!!) and bill through that but the reason I didnt was basically career progression..If i had gone contracting, I would make exactly the same kind of money in one years time as I am now and probably do the same kind of work and obviously no one is going to pay for training..I have six years experience in consulting and I figured at this stage of my career.....permanent suited me better. Mind you, you can go contracting at any stage......in my opinion, once you become a specialist in a certain area/subject with solid experience, then contracting is a great way to make money....What stage of your career are you at?