My feed
Premium

Please
or
to access all these features

Chat with other users about all things related to working life on our Work forum.

Work

New Consultancy - How much to Charge?

43 replies

springhassprungohmy · 04/05/2017 00:02

I am about to start trading as a self employed consultant.

I'd be really interested to know what sort of hourly rates consultants charge.

Any ideas?

OP posts:
Report
Newtssuitcase · 09/05/2017 07:50

I think then your charge out rate will have to be much lower. If you can't sell your services on the basis that you're a lawyer then you are of lower value to a potential client. I'd be looking at around half of what you would have charged for it as a lawyer.

Report
springhassprungohmy · 09/05/2017 09:40

That's about where I had got to, newsuitcase.

OP posts:
Report
Newtssuitcase · 09/05/2017 09:54

I think you'll find it difficult though not to inadvertently hold yourself out as a lawyer. Won't you need to reference your experience? It is likely to be far simpler (and far more lucrative) to set up as a law firm if you have sufficient PQE or to work through one of the various firms that now offer fee sharing with "consultants" - although IR35 is clearly a potential issue. PM me if you'd rather discuss offline.

Just for guidance I now work fewer hours for more than double the money (and I wasn't badly paid as a partner) - even charging at a much lower rate...Worth thinking about.

Report
Newtssuitcase · 09/05/2017 10:09

Can I also raise the question of where you are going to get guidance and support or are you very qualified?

Even at my level I sometimes sit here for a long time thinking and wishing I had a colleague to discuss a difficult point with. It is a daunting responsibility to know the buck always stops with you. I'm an ultra confident person but its still sometimes very hard to work things through yourself and have the confidence to just go with what you believe is right.

Why are you leaving your solicitor role?

Report
springhassprungohmy · 09/05/2017 11:50

Will pm you newsuitcase

OP posts:
Report
SummerKelly · 09/05/2017 18:36

There are various ways of setting your hourly rate - working out what you need to live on (remembering you'll do a lot of work for nothing), the market rate if there are comparable people and you can find out what they charge, and value pricing, which is basically about working out what you could win or save for clients and basing your rate on that, i.e. The higher your value to them the higher your rate. Remember you can also price yourself too low so people think you're crap and if you can have fewer higher paying clients you'll work less than having more lower paying clients if the market is there.

Report
LtGreggs · 09/05/2017 18:44

I run an SME - we currently charge £550/day but I think we are definitely currently under charging (vs our cost base) and should be more like £650.

Reading Bookish's list, we have the equivalent skill level of the Accountant I reckon, but in more of a niche area (within the software industry). Given that maybe we should be up around £800+ But then again, we're usually more of a discretionary spend than an accountant might be.

Report
Suzietwo · 09/05/2017 22:27

I'm a solicitor too. If I did something in my field but not a solicitor I'd need to charge about £125 p/h. Instead I charge 360 but 'give up' 25% making my effective rate £270. No brainer

Report
Newtssuitcase · 09/05/2017 22:32

I'm not entirely sure what you mean suzie Do you mean your law firm charge out rate is £360 per hour, a non lawyer would charge £125 per hour and so you charge £270 per hour?

Report
Suzietwo · 10/05/2017 08:48

No, sorry I'm a consultant. I charge clients 360 but pay the company who provide services 25% so the 270 is my 75% of 360

Report
springhassprungohmy · 10/05/2017 09:33

That is interesting Susie. You are a practising solicitor working as s consultant and paying your firm 25 % of your fees?

OP posts:
Report
Suzietwo · 10/05/2017 20:15

Yup. Loads of firms offering this kind of arrangement. I've been doing it for 7 years.

Report
springhassprungohmy · 11/05/2017 01:08

Increasingly up here too. The ones I have heard of take way more than 25%, although I suppose that depends how keen they are to have you!

Not right for me, for lots of reasons, but glad it's working for you.

OP posts:
Report
Newtssuitcase · 11/05/2017 08:11

per hour or as a daily rate Suzie? Are you in London?

I know lots of lawyers who work like this too but who are paid much less (because the firm takes higher percentage and because their charge out rate is lower). I'm wondering about working like this with people when I need additional support for my firm. At the moment I use locums and then have other people I work with who cover related specialisms.

Report
KatyBerry · 11/05/2017 08:22

I do this - solicitor / non practising trading as Ltd co consultant, day rate at 5hr charge. I know others in regions (with excellent experience) doing similar for about £120/hr which I think must be less than half but I'm not sure what regional e.g. Corporate charges are. I charge half what my rate would be in a firm with lovely branded notepaper and industry specific knowledge. Insurance is tricksy if you aren't a solicitor/ law soc compliant which may be an issue for some clients.

Report
Newtssuitcase · 11/05/2017 08:45

The people I know doing it around here (regional city) who would earn about £75k as a senior associate in a law firm seem to be using that as their benchmark with a bit on top and so they are charging out at around £700 a day with a cut to the law firm. Its a low rate for legal work for clients but a decent enough increase on what they'd be paid in a law firm plus there's a lot of flexibility.

The difficulty is that you reap what you sow and the legal market is saturated (both with lawyers and non lawyers)

Report
Suzietwo · 11/05/2017 09:28

It's my hourly rate. I'm running a small team via the consultancy firm now and our turnover matches a boutique firm in my area. It's definitely profitable (On paper I earn more than an equivalent partner in a west end firm) but cash flow is a bitch.

Report
Newtssuitcase · 11/05/2017 09:31

Yes even doing it the traditional way as a law firm cash flow is the bane of my life...

Report
Please create an account

To comment on this thread you need to create a Mumsnet account.