Day rate question

Phate

Phate

Phate

Caporegime
Joined
1 Nov 2003
Posts
35,700
Location
Lisbon, Portugal
Company who contract me every now and again at £15p/h want to offer me 2 full time days a week starting in the first week of Jan. They've asked what would I have in mind for a day rate? (being a 7 and a half hour day)

It's for IT Support work, ranging from setting up a router to server stuff in offices etc.

I've got a figure in my head, wondered what other people would expect/want?

Cheers,
Jake
 
are you going through an umbrella company, or have you setting up your own company?
2 days a week sounds like it could lean into ir35, that will make a difference to the rate you want to charge.
 
Morba said:
are you going through an umbrella company, or have you setting up your own company?
2 days a week sounds like it could lean into ir35, that will make a difference to the rate you want to charge.
Click to expand...

An umbrella company so they can sort my tax out, plus I don't want it to interfere with my photography.

Whats ir35? excuse the ignorance.
 
ir35 is an excuse for hmrc to take loads of money from contractors. If your contract work is like a normal employee then you'll be taxed like one.
 
IIRC, you get taxed if you earn more than £5000 pa or something?

If they contract you at £15 ph, maybe 15 * 7.5 is a good starting point?
 
Seems worse value for him? he could just pay you the hourly rate and save money?

Normally you would get less p/h for a contracted number of hours compared to a p/h rate, but it's a guaranteed (as long as they pay!) amount per week as opposed to x p/h.

If you are doing multiple jobs per day on £15 p/h you then have transport time/costs involved as well so how many hours would you have to "actually" do to get the same end rate?

I guess it depends how busy you are, if you are getting that per day on a regular basis anyway why would you be charging less on a per hour basis?

Not sure if it helps at all!?
 
Well I know computer people are charging the place my wife works £200 a day to get a chap in for the same kind of support.

So after they've taken their cut I'm guessing that's about £150 a day which is probably the minimum I'd want.

As Morba says if the job is treated the same as a normal employee you could fall into ir35.

However a lot of places try and write the contracts in a way to make them a little less like a permy role.
 
Wouldnt get outa bed for less than £150 if contracting . Considering what my company charge for me per hour i should charge more !!
 
I just hired two contract c# developers on £750 a day. No idea about IT Support, would need more info to give you a reasonable suggestion:

1) How much experience do you have?
2) What industry?
3) Where is it based?

If the answer is:

1) Lots, 2) Finance 3) London

...then £500+

If it's:

1) Not Much, 2) Public sector, 3) Somewhere north/cold

...then £100-150
 
anant_shah94 said:
450 a day blimey!

work 5 days a week, 260 days a year.

that's 117 000 a year before tax!!

Assuming you work every weekday of the year, and you have work to do the whole year, which I imagine not :(
Click to expand...

I run a company of 4 people,3 people at least are ALWAYS out. Shame it doesn't all come as raw profit though lol!
 
Sounds like i'm in the wrong business...

If you charge £15 PH, I would drop the rate for fixed hours daily, to say £100 perhaps?

Hourly rates are usualy more expensive than a set shift, as it should cover callout fees etc, and if you chop a bit off from your norm, perhaps they will extend your hours/term?
 
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