How to decide on your day date: a guide for contractors

Setting the right interim day rate is one of the most important decisions you'll make as a contractor. Whether you're an experienced interim professional or just starting out, understanding how to price your services effectively will help you remain competitive, maximise your earnings, and secure the right opportunities. 

Unlike permanent salaries, contractor day rates vary based on industry demand, experience, contract duration, and legislation like IR35. In this guide, we explore how to set your day rate, what to factor in, and tips to stay compliant and commercially savvy. 

Know your worth: understand your market value 

Before setting a rate, research what other professionals in similar interim roles are charging. Consider the following: 

• Sector demand - Rates for contractors in different sectors and specialisms (e.g. finance, legal, tech, HR - public sector, private, not-for-profit) can vary significantly. 
• Seniority - A senior interim will expect more than a newly-established contractor. 
• Geography - Some regions (e.g. London, Manchester) typically pay higher rates than others. 
• IR35 status - Whether you fall inside or outside IR35 affects your take-home pay and rate. 

Tip: Use salary and rate benchmarking tools, or speak to specialist interim recruiters for tailored insights. You can contact Sellick Partnership for more help today.

Factor in your costs and overheads 

When calculating your contractor day rate, remember that you're responsible for covering costs typically handled by employers. Include: 

• Tax and National Insurance (especially if outside IR35) 
• Pension contributions
• Professional indemnity insurance
• Travel, accommodation, and equipment 
• Time off between contracts (for holidays or gaps) 

You could calculate this by looking at your annual target income ÷ billable days = minimum viable day rate. 

Most contractors aim to work a certain number of days per year, allowing time off for holidays and contract gaps.

Consider IR35 and how it affects your take-home pay 

IR35 status has a significant impact on how you structure your rates.

• Inside IR35: You’ll be taxed like an employee, reducing your take-home pay. You may need to charge a higher gross rate to compensate.

• Outside IR35: You can pay yourself through a limited company, allowing for more tax efficiency - but with added responsibilities and risk.

Tip: Seek advice from a tax specialist or use an IR35 assessment tool to check your status before quoting rates.

Explore our IR35 hub for more information and guidance.

Balance competitiveness and value 

It's important to pitch your rate competitively - but avoid undervaluing yourself. 

• Too high and you risk pricing yourself out. 
• Too low and you may appear less credible - or struggle to meet your financial needs. 

Tailor your day rate for each role based on responsibilities, duration, and how urgent the client's need is. For longer-term contracts or guaranteed extensions, you might offer a slightly lower rate for job security.

Build flexibility into your rate 

Some contractors choose to offer:

• Tiered pricing for different types of clients or project scopes.

• Negotiation buffers to allow for adjustments during the offer stage.

• All-inclusive vs. plus-expenses options depending on the contract.

By staying flexible and open to negotiation, you’ll have a better chance of securing high-value, long-term interim work.

Speak to a specialist recruiter 

Setting your interim day rate doesn’t need to be a solo task. Specialist recruiters can:

• Benchmark your experience and market demand.

• Advise on IR35 implications.

• Connect you with interim contracts that match your expectations.

Working with an experienced recruiter ensures you're pitching the right rate - and getting access to roles that suit your availability and career ambitions.

Contact our recruitment team for tailored advice on setting your day rate and securing your next contract.

Setting your day rate with confidence 

Deciding on the right interim day rate is a balance between understanding your value, staying competitive in a rapidly evolving market, and making sure your rate reflects the demands of each contract. While there's no one-size-fits-all formula, taking the time to assess your skills, research the market, and factor in financial considerations will help you establish a sustainable rate that works for you and your clients.

Remember, your rate is not static. As you gain more experience, grow your network, or shift into more specialist roles, your value will change. Revisit your rate regularly to ensure it remains aligned with your skill set, financial needs, and current demand.

If you're still unsure about where to start, partnering with a trusted recruitment agency can make all the difference. At Sellick Partnership, we work closely with experienced contractors across sectors including finance, legal, HR, technology, and procurement. Our specialist Consultants understand the nuances of interim contracting, including rate negotiation, IR35, and long-term career planning.

Ready to take the next step? 

If you'd like personalised advice on how to price your services effectively, or if you're searching for your next interim opportunity, we're here to help. 

Take a look at our interim and contract jobs or get in touch with the team today for a confidential chat.