Freelance hourly rate

[Rick_m]

Hi,

 

I'm a freelance audio visual tech with 2 years experience but in Australia. I've done a few days with a company but before I send my invoice I wanted to find out what an acceptable hourly rate would be?

 

Thanks for your time,

Rick.

[paulears]

It's a bit tricky - I think the majority of self-employed AV, theatre and technical people tend to invoice in days, or maybe half-days to remove the hourly comparison, as many people have somewhat difficult status with HMRC, who can sometimes see hourly pay as a sign of employment, rather than self-employment. Avoiding it, which many people do, removes some of the risk in being categorised as an employee - assuming that's what you want. Rates wise - a day could be a 'cheap' one at maybe £120-140 through to over £400 depending on what exactly you'll be doing and the common rates for that role. Other people just starting off might struggle to get £80. Usually the clients set the day rate, and that's what they offer - you just say yes. (or no)

[Jivemaster]

Assuming that you are asking about working in the UK. Avoid mention of hours or days, it starts to say that you really are a casual employee rather than a self employed subcontractor. IMO something based on fee charged to completion is better for HMRC purposes. "AV work for performance on nn/nn/nnnn" means that you did preparation work, then everything to the rig out for your show. "Six days @ £250" starts to say employee, not the only check point but a start down a complicated tax situation.

 

How you value your services only you can decide too cheap or too expensive both look bad but what is the right amount?

[GR1]

I don't have an hourly rate but a fee for the job. I tell people who ask that my hourly rate is the same as my daily rate and they go away. If you have an hourly rate not only are there potential problems with HMRC but you will become known for having an hourly rate and could well end up with jobs that involve a lot of time traveling for a small fee in return that others don't want to do. Get your client to spec the job and then cost it. I only do half days for traveling time or clients who I've known for some time and do regular work for.

[Rick_m]

Thanks for your advice guys, I didn't know about the potential problems with HMRC.

[TonyMitchell]

I've done a few days with a company but before I send my invoice I wanted to find out what an acceptable hourly rate would be?

 

Typically you would agree this prior to working. Otherwise, a can of worms can be opened - the rate the company expect to pay may be considerably different to what you expect to earn. You may not be commercially viable for the company and similarly, their offer may not be commercially viable for you. Going forward, nail this from the outset, it makes life so much simpler!

[Jivemaster]

Remember that a MOT Tester has a queue of work lined up for all his working hours, but an ents industry tech will have lots of travel for each job, and although the show may be 90 minutes the set up can be 10 hours.

[Junior8]

Tony has it. When I started out on my own I went to some business courses and the consistent message about price was simple - the price has to be what you need it to be to cover your economic needs plus profit also allowing for tax and NI. Within that you may have minima and maxima you work with but unless you are clearing the basics you simply don't have a business. As Paul says it often comes down to what the client will pay but that doesn't alter the fact that you have to know what your price is before you can make a choice about accepting work or not. JIve is also correct in pointing out the extras that have to be allowed for - its no surprise in my field that many reckon they now charge for the travelling and do the work free! It's an old saying though that you should never chase a sale on price, a cliché but one worth remembering.

[Jivemaster]

Three rules for pricing something (inc services )

1/ what it cost plus a bit

2/ What the competition charges +/- a bit

3/ What you think you can get for it.

 

None are uniquely right none are wrong, usually a bit of all three gets you a good compromise.

 

An invoice saying "technical services for performance on nn date, including preparation, --£nnn

is less likely to be "employment" as nn hours @ £mm for show .....