How much to charge?

[sog]

I'm a permanent employee now making around £50k/year. I'm moving to another country soon - a poor country where cost of living will be much lower comparing to the UK.

My employer is suggesting that I continue to do some work for them, as a free lancer, working remotely.

Questions are:

- how much should I charge? I understand I'll be able to charge lower than a UK contractor, but what kind of number should I give them? There in this other country the hourly rate is equivalent to £13/hour.

- what kind of legal / tax arrangement should I do? Umbrella? Sole trader? I've always worked as a perm here, so I have no idea how to deal with taxes in this case.

I appreciate any help on this...

Cheers!

[XLMonkey]

Hi sog,

your rate to them has nothing to do with the country that you are moving to, so don't use that as a starting point. You should look at how much the company are currently paying for
- temporary, skilled resources
- who know and understand their business
- that they trust.

then, propose a rate that is at the mid-lower end of this range.

as regards your trading status - you need a bit of specialist advice on that one, though there may be some posters who can advise if you provide info on where you are moving to and for how long.

[d000hg]

How about you propose the same hourly rate your salary works out at? That's lower than your employer would pay you as a contractor, and higher than you would earn in your new country from the sound of it.

Where are you going and why, out of interest?

[max]

I'm a permanent employee now making around £50k/year. I'm moving to another country soon - a poor country where cost of living will be much lower comparing to the UK.

My employer is suggesting that I continue to do some work for them, as a free lancer, working remotely.

Questions are:

- how much should I charge? I understand I'll be able to charge lower than a UK contractor, but what kind of number should I give them? There in this other country the hourly rate is equivalent to £13/hour.

- what kind of legal / tax arrangement should I do? Umbrella? Sole trader? I've always worked as a perm here, so I have no idea how to deal with taxes in this case.

I appreciate any help on this...

Cheers!

which country are you moving to?

[cojak]

And how potentially dangerous is it for you to live/work there?

That should define your rate, not how poor it is.

[sog]

cojak, the particular city I'm going to is not dangerous at all.

The biggest "danger" there is the not-so-strong tech market So to arrive there with my first client (from the UK) would be great.

[sog]

Thanks all, I appreciate your replies.

The place I'm moving to is Brazil.

I thought initially on £130/day, but I guess I'll have to figure out the tax details first to decide on the rate.

Cheers