Calculating Your Day Rate
If you are thinking of becoming an interim or freelancer, you will need to determine your day rate.
Professional interim managers and freelancers are normally paid through their own Personal Service Company or via an umbrella company.
Typically, an interim or freelancer will work a maximum of 220 days a year and will only be paid for those days they work; therefore they are not entitled to holiday or sick pay or any other benefit entitlements.
Our calculation is based on a formula that is widely used in the interim management sector and works out the day rate for an interim contract that sits outside of the scope of IR35.
[VMA GROUP accepts no liability or responsibility for any loss or damage in any way arising from its use.]
The calculation is based on annual salary plus 30% (to cover additional benefits, such as holiday or sick pay, and any other additional benefits available to permanent employees) divided by 220 (which is a typical number of days worked taking into account holidays and ‘down time’ between assignments).
If you would like to discuss day rates for a role that sits inside the scope of IR35, then please do contact one of our Interim Management Team.
VMA GROUP's interim management team is proud to be one of the Institute of Interim Managers’ leading interim service providers.
For more information or advice about interim day rates or operating as a Personal Service Company, please don't hesitate to get in contact:
t: +44 (0) 20 7436 4243