How much should a consultant charge UK?
Based on the data from one of the leading freelance marketplaces, Upwork.com, the UK's independent IT consultant hourly rates range from £25 to £150 per hour. The average rate is, however, on the lower side — around £55 per hour.
If you're just starting a consulting business, the best way to determine your rate is to divide your former salary by 52 work weeks and then divide that number by 40 (the number of work hours in a week). This will give you the hourly rate you were making before.
Keep in mind, if the average consulting fees are around $100 per hour, your experience and track record will need to be taken into account. If you are a brand new consultant, you may be charging closer to $50 or $75 per hour. With 20 years of experience under your belt, you may be charging $150 or even $200 per hour.
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Small Business Consulting Fees:
| National Average | $399 |
|---|---|
| Minimum Cost | $95 |
| Maximum Cost | $1,500 |
Base salary
At Analyst or Junior Consultant level, the average basic salary ranges between £40,000 and £50,000 per year. At Associate or Consultant level, this amount rises to between £52,000 and £59,000 per year.
- Track Your Hours. It's common in the consulting industry for businesses to charge clients by the hour. ...
- Include A Header. ...
- Add Your Client's Contact Details. ...
- Include The Invoice Date. ...
- Number Your Invoices. ...
- Clearly List Your Services. ...
- State Your Payment Terms. ...
- List the Payment Due Date.
Calculate Your Hourly Rate
Business schools teach a standard formula for determining an hourly rate: Add up your labor and overhead costs, add the profit you want to earn, then divide the total by your hours worked. This is the minimum you must charge to pay your expenses, pay yourself a salary, and earn a profit.
If you are new to the field of consulting and have not yet had an assignment based on your daily rate, ask around for advice. Ideally, ask another consultant. If you've been employed full-time somewhere, do not divide your salary by 250 (the approximate number of working days in a year) to arrive at your rate.
The most recent data for 2022 shows that consultants make an average of $6,954 a month. That equates to $83,448 a year. This same research indicates that monthly salaries for consultants can be as high as $16,417 (about $197,000 a year).
Clients will agree upfront with the consulting firm on the price of the engagement and what the deliverable will be (e.g., what type of recommendation and analysis will be done). This type of model is called "Fixed fee", because regardless of outcome, the client will pay the agreed upon fee for the work.
How are consultants paid?
A consultant working as a freelancer or independent contractor typically offers several payment options, including payment by the hour, by project or on retainer. Some clients prefer to be billed by the hour. Others prefer paying by project, viewing it, perhaps, as a way to prevent consultants from padding hours.
Then you can say, “I usually charge a consultation fee of $X for this kind of help.” That's a very useful phrase, because if the other person doesn't like it, it puts them in the position of having to explain why you should give them for free what you charge other people for. Most people won't try that.
Daily rates for marketing consultants will depend on your skill level, reputation, qualifications, experience and the location of your contract. The average daily rate for marketing consultants in the UK is around £400 per day (October 2015). For the higher-end contracts you should have: 5+ years experience.
A freelancers day rate can range from anything between £250-£800 a day, sometimes more depending on the industry and level of expertise. Agencies will usually charge upwards of £350 to £950 per day depending on type of agency and seniority of staff on your account.
Management consultants charge between $100 to $350 per hour. UX consultants charge between $25 to $190 per hour, with $70 being the average.
| Job Title | Range | Average |
|---|---|---|
| Technical Support Specialist | Range:$14 - $26 (Estimated *) | Average:$19 |
| Tax Preparer | Range:$12 - $71 (Estimated *) | Average:$23 |
| Tax Associate | Range:$14 - $37 (Estimated *) | Average:$23 |
| Staff Auditor | Range:$22 - $34 (Estimated *) | Average:$27 |
