What sort of prices should I be charging?

[Kjb Electrical]

Hi all, I was wondering how much hourly rate I should be charging? I recently quoted a job only to be questioned if I was an electrician due to being too cheap.
I’m thinking of upping my rates but want to keep at an honest and fair price.

 

[Octopus]

Maybe not but then his hourly rate is not £45 an hour if its averaged out across day rates and an hourly rate that he’s charging for smaller jobs maybe.

I quite agree.

A rate of £45 per hour, is only £45 per hour if you are doing that 7.5 hours per day, 5 days per week, 44 weeks of the year.

 

[Dave OCD]

I'm avoiding VAT registration as long as possible, hate the idea of charging 20% more on labour and being less competitive and an unpaid tax collector. But I gather the turnover for having to register is based on ANY consecutive 12 month period so you could drift into it quite easily.

 

[Octopus]

I'm avoiding VAT registration as long as possible, hate the idea of charging 20% more on labour and being less competitive and an unpaid tax collector. But I gather the turnover for having to register is based on ANY consecutive 12 month period so you could drift into it quite easily.

That's exactly right ............ you can't decide what the 12 months are but HMRC can ........... to suit them

I can't see how anyone can employ somebody and not be VAT registered

 

[Anthony S]

What planet are you on? Do you have kids

£110K mortgage
2 kids (eldest just started work & daughter going to uni next year so that's about £125 per week for her we have to find)
no fancy holidays
wife works as a midwife (so very well paid)

We don't have much money to spare

I'm not on about you I'm just refering to the 50/60k a year, that's a lot of money to earn for one man band.

 

[Dave OCD]

My son is 19 now and costing me around £1300 a month with wages and training fees, but obviously he's getting more useful too.
With all the overheads all I do is make a living, the business account ends up about the same every month after all the bills are paid, low.

 

[Anthony S]

What's a living to you ?

 

[Octopus]

I'm not on about you I'm just refering to the 50/60k a year, that's a lot of money to earn for one man band.

And how many one man band sparks are earning this much?

very few IMHO

 

[Octopus]

What's a living to you ?

What I'm earning.

And no I'm not a high rate tax payer!

 

[Dave OCD]

What's a living to you ?

Enough to pay the bills, keep a roof over your head, and eat.
We could never afford a fancy holiday and my wife works full time as well.

 

[Leesparkykent]

And how many one man band sparks are earning this much?

very few IMHO

Probably couldn’t as a one man band but with an apprentice you could achieve the lower end of what’s been quoted imo.

 

[Anthony S]

You get people on here quoting figures of 50/60k for self employed other wise not worth it. That's all I was refering too, so its kind of trying to put people down if they can't or don't earn it imo.

 

[Octopus]

You get people on here quoting figures of 50/60k for self employed other wise not worth it. That's all I was refering too, so its kind of trying to put people down if they can't or don't earn it imo.

They are quoting figures out of thin air ...................

I would say you need to be making £30K to make it worthwhile MINIMUM ............ and if you go SE, it could take 3 to 5 years to achieve this ............. yet in some parts of the UK it may never be achievable

 

[Anthony S]

I know, talk telephone numbers that why I said about mortgage free, holidays etc

 

[Leesparkykent]

They are quoting figures out of thin air ...................

I would say you need to be making £30K to make it worthwhile MINIMUM ............ and if you go SE, it could take 3 to 5 years to achieve this ............. yet in some parts of the UK it may never be achievable

I have a subby that earnt 39K from me last year.

 

[Octopus]

I know, talk telephone numbers that why I said about mortgage free, holidays etc

Some people quote their turnover as there earnings! They forget about their overheads and parts for resale

Some people don't understand the difference between deficit and debt

Go figure ..............