Hi Lorriane
I use, what I call my "1200 rule".
This says that you can expect work 1200 paid hours a year (100 per month / 25 a week). Remember that much time will be spent on internal admin (AMLR etc) and marketing/networking etc (hence 25 rather than 35 per week). Taking a month to equal 4 weeks rather than 4 and a bit allows for holidays.
Calculate how much income (take home after tax) you need in a single year to cover your cash outgoings. Consider: mortgage or rent, utilities, council tax, groceries, insurance, holidays, gifts, Christmas, birthdays, wine, home maintenance, motoring costs, pension contributions, savings and investments.
Use the following link to gross this up to allow for tax and NIC (assumes sole trader or partnership rather than Ltd co).
http://www.uktaxcalculators.co.uk/reverse-tax-calculator.php
Divide the result by 1200 (chargeable hours per year), round up to the nearest £1, then double it (to allow for your business overheads) to give your Hourly Rate. Depending on your experience and market positioning etc, the result should be somewhere between £20 and £40 p/h?
Hope that's useful. Obviously you can vary the 1200 figure according to your own circumstances.
Phil
Edited at 20 Aug 2015 01:35 PM GMT
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