I have been working on a self-employed contract for almost 12 months. When I started, they offered me a 'pro-rata salary' of £37k.
They asked to be billed by the day, and naively I just did
37,000 / 12 / 4.3 (avg weeks per month) / 5 = 143.41
However, I've realised that there's a few things wrong with this approach.
Employees don't work every single day. Typically they get:
- 28 days paid holiday
- On average 5 days paid sick leave (according to this source.
- 8 bank holidays off
- Employers national insurance paid for them (currently roughly 14% about £8.6k) as a freelancer I have to pay this
- Pension (typically an extra 5%) - again I have to pay this myself.
- Payroll done for them - I have to pay an accountant for this.
My question is: which of these things is it reasonable for me to account for in calculating my day rate?
And also, how would you suggest re-negotiating based on this?