Self employed

I finished AAT Level 3 recently and someone offered me a job (they need some help with bookkeeping, not sure yet but something basic i think) but i need to be self employed. I have meeting soon with that person and i think he will ask me how much i want for the job per hour. I have no experience at all, just finished course and have no idea about how much i can charge them. Please help

Comments

  • David Ballantyne
    David Ballantyne Registered Posts: 105 New contributor ?
    edited July 2016
    Hi Eryk,

    I think you should check with the AAT membership support. Now that you are Level 3 qualified you will have Associate membership and will have to apply for a bookkeeping practising licence. You will also need professional indemnity insurance and register with the Information Commissioners Office.

    Regarding a rate I would suggest you charge 45p per transaction.

    Alternatively, you could set an hourly rate like this:
    Check jobsites like Indeed or Reed for average salaries for Level 3 qualified bookkeepers.
    Add on
    • employer's NI, (they would have to pay this if they actually employed you)
    • a percentage for employers liability (they would have to have this if they actually employed you)
    • the cost of your professional indemnity insurance,
    • the cost of your Information Commissioners Office registration
    • the cost of your annual AAT fees.
    Divide this amount by 46 weeks (this is to allow you some holiday if you were doing this full time).
    Divide the weekly amount by 30hrs (this works on the assumption that you can do 30 billable hours per week for full time work, therefore leaving some time in your week to do your own business admin).
    This will give you an hourly rate.

    Hope that helps.

    David.
    David Ballantyne
    Connect with me on LinkedIn!
    Ballantyne Accountants
    erykfrechowicz
  • erykfrechowicz
    erykfrechowicz Registered Posts: 3
    Thanks, David. That's very helpful.
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