How to work out your day rate
Count the days you can really charge for, then find the day rate that covers your business costs and the income you want.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
A day rate is what you charge a customer for one day of work. To set one, start with the number of days you can really charge for.
A year has 52 weeks of 5 working days. Take off the days you will not work: holidays, bank holidays and some days for illness. What is left are your working days.
Not every working day can be charged to a customer. Bookkeeping, chasing invoices and finding new work take time too. The days you can charge for are your billable days.
| Item | Figure |
|---|---|
| Weeks in the year | 52 |
| Working days in a week | 5 |
| Days off for holidays and bank holidays | 30 |
| Days kept for illness | 5 |
| Share of working days she can bill | 60% |
You work out a figure.
You work out a figure and find the mistake in a table.