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I've been offered a little bit of consultancy work in my spare time. If my employer approves it (nothing to stop me in my contract) then I need to work out a daily rate. Is there a reliable formula? What should I take into account? I believe travel and sustenance expenses would be paid in addition.
It would help fill the Northern winter and boost the CV.
Thanks all
I'd look at anything > full time hours as overtime so 1.5 x a normal day's pay? Or 2 x for Sundays 🙂
You could check out a few contractor websites for average rates in your field.
I suppose two schools of thought here.
1/ what's the going rate (if you know this) i.e. what others of similar experience and ability charge?
2/ salary divided by a working year - then add on factor/s for risk of consultancy vs. salaried, your holidays, NI, your office / home space, equipment, and so on.
* don't undersell yourself* - even it's seen as a 'hobby' (sort of).. if it takes off, then you've made a rod for your own back. better to give an upfront reasonable rate that reflects your worth, even if they decline (or negotiate down). I pitched for a couple of jobs when I first did the same thing, didn't ask *too much* but still got a knockback. They were clearly looking for someone _very_ cheap, and that's not a route I wanted to go down..
good luck!
I do a very similar thing and charge £400 per day, don't forget even if it seems a big number, after tax etc, it can be greatly reduced. I based mine on how much it was worth to me, cash in pocket, to give up one day of my weekend, then worked back from there.
2-4 times salaried rate IMO
depends on instruction. retainers or big projects at the lower end. short projects, one offs, etc at the higher end
As Stoner says... work out your current hourly rate and multiply by between 2 and 4 depending on what you think you [s]can get away with[/s] are worth.
Some great advice as always from singletrack. I have an inkling of what an normal rate in the "industry" (marine pollution policy) might be but had no idea how to justify it or if I was right. The times 2 method seems a good start.
I have a few days to dwell on it and find out a bit more about the expected time involved. It would involve a couple of trips to Malta so I hope it works out!
DOn't forget to consider the various insurances you may need and the costs associated with dealing with HMRC.
also handy if you know their 'budget'...
I figured there would be extra costs to me. Are there reliable online sources or should I talk to an accountant or business gateway or...?
do you need an agent ?