Rate - Daily is good, hourly can also work. My current client will pre-authorise overpayment of a few hours a week if I work them. A little income boost if I want it.
IR35 - The 'own equipment' thing is a guideline only, and I don't think you'll fall foul of IR35 for using their equipment, particularly as many places only allow their equipment to be used on their networks.
There are other reasons to avoid working for one client long-term too. At the moment you sign up for a contract or contract renewal that takes you over the two year mark, you can no longer claim day to day expenses.
I.E. I sign an initial 18 month contract, and at the end sign up for another year. From the18 month point the client office will be considered my 'normal place of work', regardless of IR35, so the company cannot pay for transport or lunch any more.