Short contract pay rates for programmers in the uk?

Question

I've been offered the chance to do some short contracts - less than two months as a self employed contractor in the UK.

I like the idea of working on a variety of projects but what rates should I charge? What else should I know?

Some details (thanks to commenters)

• I'm located in West London,
• My experience is mostly in digital libraries and associated technologies (5 years)
• I don't have Ltd Co, accountant, tax registration, etc. - do I need all these things? (In my current project I'm being put on as an employee and I think the rate is too low)

The tools/technologies

• Python/Vizard
• Perl/FastCGI (Both are modifying existing systems)

Answer 1

Its completely depenedent on your skillset, the particular sector you'll be working in & your experience level.

In Dublin, .NET Contractor Rates for standard ASP.NET/Winforms Dev comes in anywhere between 300-450 euro a day at the minute, though I know of several people working in very niche industries (financial statistics etc...) that are getting twice that.

Best bet is to look at sites like Monster.co.uk etc, and see what contract rates are being asked/offered for similar roles

Generally, you can apply the 150% percent rule. If you're currently on 50K (in a FullTime-Perm Role), then calculate 75K split over ~approx 220 working days to account for the fact that you won't get paid holidays/paid sick leave/perks/bonuses/pension contributions etc...

Answer 2

I know people working in London as Java contractor and his incomes are 500 euros/day. Also I know that other contractors in the same sector win 700 euros/day or more.

Answer 3

Take a look at jobstats.co.uk for indicative rates in the UK, split down by skillset.

Rates in London will tend to be higher, skewed by the large financial house presence.

For further info on contracting in the UK, see the Professional Contractor's Group, which has help on company formation, tax, VAT etc. plus forums for contractors inc. contract offerings.

Answer 4

Check out this website itjobswatch.co.uk it's a great comparison site and you can check on technology, location and contract/perm rates so as well as growth trends in each particular area so you should be able to use this as a good guide.

Answer 5

150% of fulltime perm is way too low. The problem is that you'll only notice this later, after you haven't spend money on things you should have (pension, insurance).

• You should build up a one year buffer every two to three years.
• You should factor in needing a third of your time finding new contracts, networking and building up marketable knowledge. Short contracts take lots of time to find and negotiate.
• You have to pay your own pension and insurance. That is at least a third more expensive than a collective contract.
• You don't get paid when you're ill.
• You need time to do your administration and talk to tax authorities, accountant, legal advisor. When you first start, at least a day a month.

In addition, find a few other freelancers who are either

• a good backup;
• or can do things you cannot.

Your rates should reflect what you value, e.g. :

• when learning nice new technology, offer a lower rate for the first month;
• separate out travel time and cost; you don't learn something on the road;
• offer a lower rate for working from home;
• when the project is nice, give a (temporary) discount;
• give a discount when a customer finds you new business;
• work the first day cost-only to show what you can do;
• short consultancy jobs should be more expensive than longer development jobs.

Answer 6

You should charge more for short-term contracts as you will end up spending more time on the bench. Clients generally get angry if you spend all your time on the phone to agents so it is hard to work and find jobs at the same time. Personally, I don't bother with anything less than two months.

If you are just starting out it is probably a good idea to use an umbrella company instead of a Ltd, just while you get the hang of it. While you will probably want your own Ltd, setting one up and shutting it down again can be a bit of a hassle and isn't worth it if you only want one short term. I use SJD Accountancy they can sort you out for both umbrella and Ltd. They are a little pricey, but their service is good.