I’ve been doing a spot of freelance webmonkeying at Syzygy where everyone seems to work, rather than have fun. No wonder they’re still in business five and a half years after I was last there. It’s no way to run a dotcom I tell ya!
Anyway, with my current search for freelancing gigs I was thinking about how much a freelancer needs to charge per day to equal certain full-time salaries. Let’s say the freelancer would naively still like his five weeks’ holiday a year (which is what every company I’ve worked for has offered). And that there are around ten weekdays a year taken up by Christmas, Easter, bank holidays, etc. And let’s assume our freelancer is going to be ill for, on average, five weekdays a year. Out of a year’s 52 weeks we’re left with 44 weeks during which the freelancer has to make up a yearly income. We’ll assume his income tax and National Insurance will be the same as if he were employed full-time, because it’s simpler and I’ve no idea what the difference actually is (I’d like to know… anyone?).
Therefore, to make the following annual salaries, the freelancer needs to charge these amounts per day:
- £30,000: £136 per day
- £40,000: £182 per day
- £50,000: £227 per day
Of course, this assumes the freelancer will be working five days a week which is more than unlikely. So he should charge more to make up for the time when he’s looking for work, promoting himself, doing his own admin, etc. And I’m ignoring the question of whether the freelancer wants to work 44 weeks per year and how much of a drop in income he’s prepared to accept in exchange for more free time. I’m also ignoring the costs of possibly paying for his own equipment versus the benefits of claiming the cost of said equipment back against tax.
I’d appreciate any thoughts from anyone who’s got more than, er, three days’ experience of this lark.