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How much should I charge as a freelancer?

(12 Posts)
catcalledginger Sat 24-Nov-12 16:56:20

I've been earning £15 per hour as an employee.

Have now gone self employed. How much should I be charging to receive equivalent rate (to cover tax, NI, holidays, sickness, etc.)?


TalkinPeace2 Sat 24-Nov-12 22:57:34

If your salary was £15 an hour, then your salary was £29250
and allowing for 200 chargeable days a year, your minimum day rate needs to be
see what others in your field are charging - do NOT undervalue yourself

catcalledginger Sun 25-Nov-12 12:37:28

Thanks Talkin

How did you calculate that salary? I'm not sure I earned as much as that. Was employed through an agency on £15 per hour for a 37 hour week. I did get holiday pay on top of that but it didn't seem a lot and the rules behind it were stupid and complex - something like only able to take holiday after three months and it was payable at 0.6 of rate. For example, if I took 2 days off I would then have to work another three months before I could claim holiday pay again.

purplewithred Sun 25-Nov-12 13:05:29

£15 x 37.5 hrs/week x 52 wks/year = £29,250 BUT that doesn't take into account the employer's cost of employing you - National insurance etc which is around + 11% plus any costs you are now taking on yourself, like sick days and holidays or electricity if you work from home.

So TalkinPeace is right: at least £150 a day if not more, depending on what the going rate is. As a freelancer I also vary my rate a lot depending on the length of contract/length of notice on either side.

TalkinPeace2 Sun 25-Nov-12 13:16:22

Aha, if you were hired through an agency then they firm did not pay ERS NI or holiday pay BUT it will have been paying around £25 an hour for the pleasure of your company.
Day rate of £200 minimum

PS my rate is upwards of £300 and DH's is more than that and we are outside London ....

catcalledginger Sun 25-Nov-12 13:57:01

Thanks everyone.

I didn't earn £29,250 because I was only paid for the hours I worked so it was more like...

£15 x 37 hrs/week x 45.5 wks/year = £25,252.50

Now thinking I may actually be better off employed... sad

TalkinPeace2 Sun 25-Nov-12 14:02:30

if you are charging £175 a day and being very thorough with your expenses
(details on there ....)
you only need to work 130 days a year to take home the same money .......

motherinferior Sun 25-Nov-12 14:04:27

Depends entirely on your field, and what others get paid.

I am currently on a risible day rate, but with a whole chunk of work; if I'm hired to do a short specialist job I charge £350 a day.

mirry2 Sun 25-Nov-12 14:12:49

Is the £15 an hour gross or net of income tax?

TalkinPeace2 Sun 25-Nov-12 15:22:59

do you know your rate net of tax and NI from your payslip?

OP was working for a temp agency - that will be gross

catcalledginger Sun 25-Nov-12 16:20:23

£15 gross

I'm a PA and that's relatively good for around here. I could earn less and I could potentially earn more. I'm slightly fed up of agencies milking it really. I have a good network and could quite easily pick up more work. I just want to make sure I cover myself in my rate for the insecurity/holiday pay/etc. I also think I'm worth more than £25k!

TalkinPeace2 Sun 25-Nov-12 16:23:08

Go for it.
ALL of my work comes from networks and connections - I do not advertise on principle.
And if you offer your services on a 'days per month' basis they will be banging at your door as you keep tally of how many times they use you - and agree a fee for extras - they need think no further than call when needed ....

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