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Enter your target income and working days to calculate your day rate.
Find out exactly what day rate you need to charge to match a target salary, after holidays, admin time, expenses and UK self-employed tax.
Enter your target income and working days to calculate your day rate.
Start with your target net income, gross it up for income tax and NI, add annual business expenses, divide by billable days (after holidays, sick days and admin), then add a profit margin for risk. A typical UK freelancer has around 200-210 billable days per year.
It depends on your field. Software developers typically charge £400 to £700/day. Marketing consultants £250 to £500/day. Designers £200 to £400/day. Accountants £200 to £400/day. The key is to calculate the rate you need based on your target income, not just copy market averages.
As a freelancer you pay both employee and employer costs. You fund your own holidays, sick pay, pension, equipment, insurance, training and have gaps between contracts. A day rate of £300 does not equal a £75,000 salary because you may only bill 200 days and must fund everything yourself.
You must register for VAT once your annual turnover exceeds £90,000. If you charge business clients, voluntary registration can be beneficial (you reclaim VAT on expenses). If you charge consumers, VAT registration makes your services 20% more expensive for them. An accountant can advise on the best approach for your situation.
For informational purposes only · Not financial advice · Consult an accountant for your specific situation