Converting Self Employment rates from employment salery

[Matthew77]

Hi All

I know there are alot of threads in these forums about Day rates For tilers but I was wondering if anyone knew how to work out how much I'd need to charge as a minimum day rate to match the salery i'm currently on?

At the moment I work as a general builder for a small contracting firm, they pay me quite well so i'm wanting to know what a minimum day rate i could charge to match my salery when iI go self employed.

For example if i were earning £20 000 a year including 4 weeks paid holiday including bank holidays too. How would you go about working out how many work days there are in a year and bumping up my pay so that i could take the same holiday as i do now?

Thanks in advance & Merry Xmas all

Matthew

 

[grumpygrouter]

That would work out around £83.33 per day mate, for 5 days per week, 48 weeks per year.

Grumpy

 

[Matthew77]

Sorry Grumpy that amount was just a rounded number so it would be easy to see how to calculate the amounts. How did you work that out did you just divide £20 .000 by 48 & then divide that by 5?
Is there any other things to take into account when working this out or is it as simple as that?

Thanks Matthew

 

[grumpygrouter]

Sorry Grumpy that amount was just a rounded number so it would be easy to see how to calculate the amounts. How did you work that out did you just divide £20 .000 by 48 & then divide that by 5?
Is there any other things to take into account when working this out or is it as simple as that?

Thanks Matthew

Yes Matthew, you got the calculation spot on. The other extremely important thing to consider when self employed is the fact that you may not (almost certainly not!) have work booked in 5 days per week 52 (or 48) weeks per year. Added to this are overheads that you need to cover - insurance, vehicle running costs, tooling to name but three all have to come out of this "day rate".

How you arrive at your own personal day rate depends on those types of variables.

Grumpy

 

[Matthew77]

ok thanks for your help grumpy

 

[CLAYS TILES]

good advice as usual grumps:yes:

 

[Varley]

Spot on grumps, sound advice, I reckon you need to be earning around £120 absolute minimum as a day rate, regardless of what trade it is, out of that £120 you'll probably see about £80-£90.

 

[Matthew77]

thanks varley.

I was thinking of starting out at around the £120 mark myself.