a good summary, but re setting your day rate, I would add that although your day rate will not be the same as that charged to clients by a unit for your work as an employee as they have greater overheads, they do have economies of scale. I set out a while ago some of the costs of self-employment (whilst demonstrating that the rates offered by certain units to 'self-employed staff' are woefully inadequate).
Bear in mind that you need to cover ALL your costs (insurance, travel, tools, rent, etc etc) yourself but also set money aside for your holidays, bank holidays, time off sick, unfunded time, CPD time (about 3-5 days a year) and time to go out there and get work. Then there's tax and NI to pay. Maybe you'd like a pension? or you need a new computer to write your reports? Its quite a chunk of extra you have to cover yourself. Plus add difficulties with cash flow and late payment. You can make the expenses work for you better than an employed person, but it is swings and roundabouts.
A few years ago the IfA came up with a calculation that for a MIfA level specialist the day rate should be at least ?200 a day to make MIfA level pay. I guess I'm allowed to say that there has recently been an IfA meeting to have a look at what they can do about helping freelancers.
As Unit says, it is best to be self-employed in times of demand, when you can offer flexibility, outflank the competition and charge accordingly, its less good when there is no demand, and even worse when you aren't covering your costs.
Bear in mind that you need to cover ALL your costs (insurance, travel, tools, rent, etc etc) yourself but also set money aside for your holidays, bank holidays, time off sick, unfunded time, CPD time (about 3-5 days a year) and time to go out there and get work. Then there's tax and NI to pay. Maybe you'd like a pension? or you need a new computer to write your reports? Its quite a chunk of extra you have to cover yourself. Plus add difficulties with cash flow and late payment. You can make the expenses work for you better than an employed person, but it is swings and roundabouts.
A few years ago the IfA came up with a calculation that for a MIfA level specialist the day rate should be at least ?200 a day to make MIfA level pay. I guess I'm allowed to say that there has recently been an IfA meeting to have a look at what they can do about helping freelancers.
As Unit says, it is best to be self-employed in times of demand, when you can offer flexibility, outflank the competition and charge accordingly, its less good when there is no demand, and even worse when you aren't covering your costs.