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Comment by flint | Hacker News Reader

Contractor math.

There are 52 weeks in 1 year. Give yourself 2 weeks vacation that leaves 50 weeks. At 40 hours per week that is 2000 hours as a full time equivalent (a salaried position). If you bill at 100/hour that is 200k/year.

If you want/need 4 weeks off, assume 1920 hours per year and adjust your hourly rate, call it ~105/hour

If your medical insurance costs 6k per year, adjust your hourly rate, call it ~107.3/hour

If you want disability/life insurance and the cost to you is 15k per year, adjust your hourly rate, call it now ~115/hour.

Giving up 50k in stock options, well that's a one time thing. Also if a relocation is required and your partner looses their positon better factor that into your decision - up front.

This all gets negotiated up front - not 4 months in.

Good luck on your next negotiation.

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The days of UK software contractors being paid £115 per hour are long gone

Because it's much more or much less?

I'm guessing by the GP assuming 10 days/year of vacation they're in the US. $115/hr is a decent contractor wage, especially on the more independent/freelance side of the spectrum. "Contractors" hired from companies in a C2C arrangement will be billed much higher, at rates approaching senior associates at law firms (I've seen $400/hr bill rates for senior Oracle contractors who aren't even coding, just implementing and configuring), while the people you're getting are earning anywhere from $30-150/hr, but via W2.

I'm in the US and bill $90/hr on a long-term contract because the work is easy and I am free to do anywhere from 0 to 30 hours a week at my discretion. So there are lots of reasons to willingly bill (sometimes much) less than you otherwise might.

Depends on your specialisation ;)

I'm pretty sure I can get 800+p/d in London.

Almost 10 years ago Barclays was paying my 600p/d

Inside or outside IR35 for the 800 figure?

Outside

The problem is that you are likely to see very similar rates even after all those years.

Oh yeah. The rates haven't risen drastically.

But GBP100 p/h isn't unattainable

Of course all depends on the skills required, but yes, those rates are doable.

The current going rate for general software development for London banks is around £750-800 per day via an umbrella company. Depending on a few details that works out equivalent to maybe £650 per day for a real (outside IR35) contract position.

I haven't heard of anyone other than the most senior and well connected taking home £800 outside IR35 for software development in the financial services industry since the changes to the off payroll rules. Obviously there are exceptions like quants but that's playing a different game really.

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