Len's Day Rate Sums

If you're charging two-fifty a day, you might be paying to go to work. I was. So here's the sum nobody showed me. My numbers are in the boxes. Change them to yours. It adds itself up.

1What you need to earn

The wage you'd want if you worked for someone else. Before tax, same as any wage.

A year's wageMine's a grand a week

2What it costs you to exist

For a whole year. Before you've earned a penny.

The vanThe finance, or saving for the next one

Diesel

Van insurance, road tax, MOT, tyres

Parking and the congestion charge

Liability and tools insurance

ToolsWorn out, or walked off site

The accountant

Phone

Boots, workwear, cards and tickets

Put by for when the knees goNo boss is paying in for you

Anything elseYard, storage, software, the lot

It costs you£23,600

3The days you get paid

Every weekday in the year. Then take these off. Be honest.

Weekdays in a year

260

Bank holidays

Your holidays

Wet days and no-work days

Days you're poorly

Days quoting and chasing moneyHalf a day a week, for me

Paid days left188

Your day rate has to be

£402

£52,000 wage + £23,600 costs, over 188 paid days

Now the bit that hurts

What you charge a day now

188 days at £250 is £47,000 in. Take off the £23,600 it costs to exist.

That leaves £23,400. Before tax.

You're £152 a day short. So it's not cheap. It's you paying them.

This is your labour, mate. Materials go on top, and the VAT if you're registered.

Do it again every year. The van and the diesel don't stay still, so your rate shouldn't either.