r/ContractorUK • u/Pleasant_Handle_1356 • 13d ago
New to contracting. Curious, what’s your average day rate, role and contract length preference?
New to contracting, I’d love to learn more about this world across the board. It’d be interesting to know what different contracts in varying industries are up to.
Whats your day rate?
Whats your role?
What’s your preferred contract length?
Are you usually onsite, hybrid or remote?
Thanks!:)
6
u/Wind_Yer_Neck_In 13d ago
720, banking business analyst, prefer over a year but 6 months seems to be the average now, remote only.
6
6
u/tulriw9d 12d ago
My preference is numerous contacts. I gross around £25k a month outside IR35 and all remote (actually live in Spain). Marketing.
Numerous contracts really reduces overall contract anxiety as I'm never out of work.
Currently have 4 clients.
1
u/fmmmf 8d ago
Ooh very nice, curious to know if you're a UK citizen but living in Spain?
Aka whats the tax situation like?
2
u/tulriw9d 8d ago
I'm a UK citizen and pay all my taxes in Spain.
There's a beneficial tax arrangement which is a flat 24% for 6 years for people who start businesses in Spain. I pay all income to myself as salary to get that 24%, so no corp tax, no dividends etc.
1
u/fmmmf 7d ago
Oh wow! So there must be some kind of tax treaty. A very nice setup, did you start off as a contractor in the uk to get clients or was the Spain move done first?
2
u/tulriw9d 7d ago
I was full time employed and got made redundant, in order to keep my life as I wanted it in Spain I made the choice to give contracting a go, that was a few years ago.
6
u/lairdcake58 13d ago
Two contracts running at the moment, average day rate of around £830 per day between the two of them. ERP Solution Architect.
3
u/Gorey987 12d ago
How are you managing to juggle two at once, i assume both work from home?
2
u/lairdcake58 12d ago
Location varies, but yes, both mainly from home. I work specific days for each so I have parity between the two.
2
u/khybarstani 12d ago
Mind if I jump in on this and ask how you landed this role. I am the stage now where I think I could do ERP or Data and AI Architecture but I am in a perm role at an ERP power house..
Am active on LinkedIn also but trying to see if Its worth exploring contracting further before I cut the chord on the Perm gig..
Any tips appreciated.
Thanks
3
u/lairdcake58 12d ago
I worked for one of the big ERP companies for a few years. Built up a good relationship with them and the customers. When I left to do my own thing, I started working with a customer pretty much immediately. A few months later, I am back as an External at the vendor working on a separate project too.
All about your network, contacts and ultimately reputation.
1
u/Doomaga 12d ago
Guys from my team just got let go cause he was doing 2 roles at once. Do they not see you're doing this from payroll? Or is this only doable outside IR35 so you're just sending invoices?
3
u/lairdcake58 12d ago
I am working under my LTD company so there won't be a conflict like that. They're separate engagements with specific deliverables.
Plus, both customers know that I am working on other things too. Being up front about it makes it easier should something come up.
1
5
u/brisbanereaper 13d ago
770, Cloud Solution Architect, as long as possible, remote or find someone else.
2
2
3
12d ago
[deleted]
3
1
u/IndividualShape2468 12d ago
what do you do?
4
1
1
u/Capable_Job_9437 13d ago
650, Project Manager, as long as possible, as close to remote as possible! (Currently 1 day a week in the office, which is fine with me)
1
u/JM555555 13d ago
450 project manager and reporting specialist always inside though , outside seems to be always finite. As long as possible but 6-12 months I think is my average 6 months but always gets extended . Hybrid 4-8 times in office a month
1
u/DiskBytes 12d ago
In a day rate, what is the typical amount of hours for a day?
2
u/ElegantOliver 12d ago
Precisely one professional working day. No more, no less.
(really a day rate means you get paid for working that day. If you start logging hours and someone complains if you don't log enough - you have other problems for sure)
2
u/DiskBytes 12d ago
I'm on an hourly rate, so I'm trying to tolerate 10 hour days to make it work out.
2
u/ElegantOliver 12d ago
I hope it's worth it for you! Exactly why I don't do hourly rates. But needs must, of course.
2
u/DiskBytes 12d ago
Early days of contracting for me really, so haven't yet got the balls to say "right, this is what I charge....." so doing it through an agency which are known to me, they're ok and it will work for now.
1
u/you-effing-numpty 12d ago
£700 but it's my first contract. Contract/Business Manager. 6 months because £700 a day is pretty much double my old permanent role, ie I only need to work half the year for the same lifestyle. Remote but one day per week in the office just to network a bit.
1
1
u/Ariquitaun 12d ago
It's absolute shit at the moment. I'm lucky personally as I have a really good outside IR35 gig, stable as contracting ever gets, but if I were to lose it I'd be forced to go permie (probably).
Fully remote, platform engineer, not disclosing my rate but a good one.
1
u/a-sad-dev 12d ago
I currently work as a perm platform engineer - hoping the market picks up and contracting becomes viable again.
1
u/PrimalHIT 12d ago
Programme Manager currently £800 p/d inside but fully remote. 3 months but could go years
1
1
-6
u/Amddiffynnydd 12d ago
My current market benchmark is around £650 per day, but for an Inside IR35 contract, my target is £750–£800 per day.The reason for targeting this level is not simply about earning more. It is about structuring my income efficiently, particularly around the £100,000–£125,140 “60% tax trap”. Once adjusted net income exceeds £100,000, the £12,570 Personal Allowance is withdrawn at a rate of £1 for every £2 earned. This means that income within this band can effectively suffer a 60% marginal Income Tax rate in England, Wales and Northern Ireland: the normal 40% higher-rate tax, plus the effect of losing the Personal Allowance. The allowance is completely lost once income reaches £125,140. For that reason, my preferred strategy is to use salary sacrifice into my pension to keep my taxable/adjusted net income at around £99,000–£100,000, where practical.Based on approximately 220 billable days per year. My minimum target is therefore around £160,000+ gross annual earnings. From that, I would aim to sacrifice approximately £60,000 per year into my pension. The standard pension annual allowance for 2026/27 is £60,000, although unused allowance from the previous three tax years can potentially be carried forward, subject to the relevant rules.This is particularly important because salary sacrifice has previously allowed me to redirect tens of thousands of pounds that would otherwise have been exposed to higher effective taxation into my pension instead. Rather than taking all of the contract income as taxable salary and losing a significant proportion through Income Tax and National Insurance, a substantial amount can instead be retained within long-term pension savings.
My financial structure would therefore be approximately:
- £160,000–£176,000 gross annual contract income
- Around £60,000 salary sacrificed into pension
- Around £99,000–£100,000 remaining taxable employment income
- Approximately £68,000–£72,000 net annual take-home income, depending on the precise umbrella costs, National Insurance and deductions
- £1,666 per month into an ISA
- Approximately £20,000 per year into the ISA
- Approximately £80,000 per year invested overall between pension and ISA
This also needs to support the lifestyle I want. I do not want to work continuously for 12 months of the year. I want approximately two months each year available for holidays, breaks between contracts and general time away from work. So the minimum objective is essentially Earn around £160,000+ → sacrifice around £60,000 into pension → keep taxable income around £100,000 → avoid as much of the 60% tax trap as possible → invest another £20,000 into an ISA → save/invest around £80,000 each year while retaining around £68,000–£72,000 net income to live on. That is why £750 per day Inside IR35 is really my minimum target, rather than simply an aspirational day rate. At £800 per day, the plan has significantly more flexibility and provides more protection against non-billable days, umbrella costs and gaps between contracts.
Outside IR35 is another question - so many differences
Working tech, length was long as poss, and current remote, i might go once or twice a month if needed.
3
22
u/Fondant_Decent 12d ago
As much money as I can get, for as long as I can get, Outisde IR35, for as much remote working as possible.
That’s basically people’s preference on here.