We all talk about it but what is the right rate

[BlackenedBiker]

I was talking to the other half over the weekend and we started discussing the right rate, what the minimum rate was to cover all outgoings and what a contractor needed to pay for out of the money paid.

We came up with the following

Outgoings Expenses:
1: Living wage during work and bench time
2: Pension (or money pot for the future)
3: Health
4: Taxation

And after the conversation we decided that the MINIMUM daily rate that justified all the trouble that a contractor has to go through (such as paperwork, bench time, constantly applying for job, being flexible etc, etc) was

£500 (please note that this is a MINIMUM).

What are the thoughts of other posters on this........

[pzz76077]

My wife (also a contractor) and I aim to save a minimum of 100 Euros a day each and have done for over 10 years now. We each spend a maximum of 100 Euros a day, anything else we make goes into other projects.

PZZ

[moony1234]

I was talking to the other half over the weekend and we started discussing the right rate, what the minimum rate was to cover all outgoings and what a contractor needed to pay for out of the money paid.

We came up with the following

Outgoings Expenses:
1: Living wage during work and bench time
2: Pension (or money pot for the future)
3: Health
4: Taxation

And after the conversation we decided that the MINIMUM daily rate that justified all the trouble that a contractor has to go through (such as paperwork, bench time, constantly applying for job, being flexible etc, etc) was

£500 (please note that this is a MINIMUM).

What are the thoughts of other posters on this........

Probably about half that for me...

[pmeswani]

I was talking to the other half over the weekend and we started discussing the right rate, what the minimum rate was to cover all outgoings and what a contractor needed to pay for out of the money paid.

We came up with the following

Outgoings Expenses:
1: Living wage during work and bench time
2: Pension (or money pot for the future)
3: Health
4: Taxation

And after the conversation we decided that the MINIMUM daily rate that justified all the trouble that a contractor has to go through (such as paperwork, bench time, constantly applying for job, being flexible etc, etc) was

£500 (please note that this is a MINIMUM).

What are the thoughts of other posters on this........

What about bills (e.g. credit cards, shopping, etc). I think you may need to boost the minimum to £700.

[BlackenedBiker]

Probably about half that for me...

Yeah was what I was thinking would be a minimum for me before we started thinking.

With benchtime taxation etc that is about £25K per annum. I am not saying what is right/wrong but that does seem on the low side for a business taking a lot of risk and offering their clients a whole heap of flexibility.

That is less than a permie rate, for me at least.......

[Shimano105]

Minimum? £200 a day - non-London of course.

Cheap? Well it's out of my hands whilst following the standard Jobserve-agency route.

[BlackenedBiker]

Minimum? £200 a day - non-London of course.

Cheap? Well it's out of my hands whilst following the standard Jobserve-agency route.

Hi Shimano (great piccie BTW).

I hear what you are saying, times are tough.

I guess what I am getting at is....at what point does a freelancer just say, scroo it I am going back to permie-dom and less hassle because the market rate just doesn't make commercial sense, all things considered.......

[Shimano105]

I think I am at that point - however I find it hard to convince a) the client and b) myself that i want to go back to permie work.

For now I'm hoping to either increase my rates when the surplus supply has gone back permie and also get a plan B up and running.

£200 a day stinks but it's better than the alternative at the moment.

[JoJoGabor]

I think £500 is a superb rate. I can't believe you think this is a minimum, you obviously have a high standard of living.

Around 6 years ago when I started contracting, I contracted for just over a year on a rate of between £240 and £280 in London. THis gave me a decent lifestyle and paid for me to travel around the world for myself and my girlfriend for a year. By that standard that was a very good income and one that probably over 90% of the population could only dream of.

[Board Game Geek]

If you've got no debts or major financial committments, you could easily get away with just over a £100 a day, which means you can be very flexible with your rates.