Help to work out my day rate

[NewJobNewMeNewLife]

I’m currently employed earning £40k- no perks and just minimum holiday and sickness leave. (Third sector) I work much in excess of full time for this wage

I handed in my notice in from that job to reassess my life and what comes next (I’ve had a very stressful time over the past few years but have started to see my job was exacerbating my stress)

Unexpectedly, a contact I have through work has asked if I would be willing to go and chat to him about doing some consultancy type work on Monday in my field. I’m expecting he may want me to do 2-3 days per week.

I have also been offered a couple of days per month on a retainer basis by a different contact.

so my question is, how would you calculate your day rate in my situation? Would you charge less for regular work like this than ad hoc jobs?

Do you quote your day rate to clients or do you give a rate for project?

The work is giving advice so other than software, computer, accountancy, banking and a bit of mileage- there shouldn’t be too many costs.

Also I’m planning on setting up as a sole trader and obviously will be under the vat threshold.

Can ask what % others put to one side for their tax bill?

so many questions, I’ve only ever worked as PAYE in the past and had no intention of going self employed!

I put 30% aside for tax and charge retainer clients slightly less. Imagine you would charge around £500 per day

The client who has asked me to do some work wants me to do some management consultancy-I had a more senior role before I had my children.

For most of my ongoing work though, I will be working with not for profits who are in receipt of grant funding, or local authorities.

I have no idea though how to work it out. Obviously at the moment I’m earning less than £200 per day before tax…

When you say slightly less, is that a fixed percentage. Say 10% less?

can I ask what your payment terms are too? How long do they have to pay up?

Thank you! I’m so worried about overpricing myself and not getting any work…

…but then I don’t want to get less than I deserve and am worth either!

and obviously if these will be regular clients I can’t keep messing with my fee!

A couple of days ago, I was asked my hourly rate to do a job. I'm used to being offered a flat rate so I'm thrown by the question. Like you, I want to know that I'm being paid what I'm worth and scared to lose the commission by going in too high.
So I've decided to ask them what they expect to pay / and how long they envisage the job taking. Hoping I get a sensible answer!!

@starplay in my experience, never agree to an hourly rate. The client then starts calculating how long they think things will take and ultimately you end up getting paid less.

I work on price per project or a retainer- money per hour is unhelpful because the tasks often mean you can't do anything else that day etc.

Better just to say what are the deliverables you need, I'll write a scope with a silver and a gold pricing option

@NewJobNewMeNewLife

They should always be slightly uncomfortable with the first fee you suggest, else you've gone in too low.

Sitting with a bit of tension can make you you an awful Lot of money!

I have been paying graphic designers and other creative professionals over the last year or so and day rates have been about £200-300 whereas a consultant was about £500 and sometimes I do giving advice consultancy that is charged at £750/day (my work charge it on my behalf). One colleague said that he said wasn't sure what to charge for one evening and so said to them whatever you think is fair and in line with what you would pay others - if it is your friend could you try that