Turning salary amount into day rate?

[Watersign76]

Hello

Have got the opp to work for an org 3 days a week, which works well, as it leaves time to develop my business on the other 2 days.

They were advertising a salary of £35K as a full time role, so £21K for 3 days. I am fine with staying self-employed but am guessing that they'll go for a day rate, so I need to work out what that should be assuming I won't get paid for hols & sick. I am guessing there is an overhead saving to them if I am self employed too?

So should the day rate be £21k divided by 46 weeks by 3 days, which allows for 5 weeks hols and a week off sick? I am going to push them up anyway, as I was earning a lot more in last role, but I needed to get my head around the maths!

Any thoughts would be welcome.

Cheers
WS76

I'm not sure how day rate is calculated as I don't have one.

So I think what I would do is figure out what the hourly rate is for £21k for 3 days a week. And you divide by 52 always, not by 46. Since you don't get holiday time, you figure it into your rate, so far as I know!

Then once you have the hourly, double it because you'll need to pay NI, taxes etc.

After that I guess you multiply by 8 to get your day rate, maybe with a discount for being guaranteed the hours? I'm sure someone who knows more about day rates will be along soon!

Without delving too much into the maths, in my industry people who would earn around £35K as employed staff would expect £35 - £40 per hour as self employed.

When I started as self employed I used a fairly standard calculation that my previous full-time salary equated to 200 days actual work - taking into account holidays, bank holidays, potential sick days, training & development. So £35K would equate to £175 for every day that you work. You also have to sort out tax and NI, but at the rate you are talking about, there are ways to do that which would leave you in an equivalent financial position. I do not agree with Tee2072 that you double the charge for tax and NI - you would pay these on your salary anyway.

In bluenordic's example, the people may be charging this rate (about twice the rate above) because their employment is not guaranteed, and because they have to spend time and money marketing their services across the industry. Anything that I do as a genuine short term contract, I would charge a high rate because they are paying a premium for your availability and your specilist knowledge.

However, your posts implies that you have applied for and been offered a salaried position which you want to do on a self-employed basis. Why are you not doing it as an employee (you could be employed in this job and also be self-employed the other 2 days)? If this is a permanent position that you are doing on fixed days, it may not be classed as self-employment.

Ok, thanks everyone.