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Nuspark

Hello, just wondering how folks are working out their rates.

I realise you work out what you want to earn per year and the total overheads of your business, add these two together and then divide it by the amount of hours you will work per year to arrive at an hourly rate.

My questions are:

1 ) how many hours per year is realistic, bearing in mind not all time is spent physically on jobs?

2) If I want to take home say £500 a week after tax, how do I allow for tax i.e. how do I work out what tax I'll have to pay on that?

Thanks in advance.
 
Hello, just wondering how folks are working out their rates.

I realise you work out what you want to earn per year and the total overheads of your business, add these two together and then divide it by the amount of hours you will work per year to arrive at an hourly rate.

My questions are:

1 ) how many hours per year is realistic, bearing in mind not all time is spent physically on jobs?

My costings are worked out on 48x5day weeks per year.

2) If I want to take home say £500 a week after tax, how do I allow for tax i.e. how do I work out what tax I'll have to pay on that?

Between £10,600 and £42,385 per annum, tax year 2015/16 you will be in the 20% bracket.




Thanks in advance.

If you wanted to take home £500 after tax you would earn £625 before tax.
 
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Check out what the other competition is charging and if it seems to justify overheads etc try to be somewhere in the middle
 
If you are just starting out and have not built up a client list, you will be working all the hours God sends to win and complete work. Build a reputation and charge what wins you work without loosing money.

Once you are established, you will be able to charge more.

If you want £500 net a week for 38hrs, then maybe starting your own business is not for you.

If you put in the hours and do quality work, then working for yourself is great, but don't kid yourself that you will make your £500 every week finishing at 4pm.
 

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