{"id":219774,"date":"2017-02-28T20:18:17","date_gmt":"2017-02-28T20:18:17","guid":{"rendered":"https:\/\/www.pearlaccountants.com\/?p=1696"},"modified":"2017-02-28T20:18:17","modified_gmt":"2017-02-28T20:18:17","slug":"key-guide-contractor-rates","status":"publish","type":"post","link":"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/","title":{"rendered":"Key Guide to Contractor Rates"},"content":{"rendered":"<p>When Contractor Rates are market driven be sure to negotiate a better rate when demand in your niche market is high. However, ensure that you communicate with your clients and build a good relationship with them to facilitate future negotiations. The same principle applies if you work through an Agent.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/#How_to_Negotiate_Better_Rates\" title=\"How to Negotiate Better Rates\">How to Negotiate Better Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/#Acquiring_Rate_Increases\" title=\"Acquiring Rate Increases\">Acquiring Rate Increases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/#Factors_that_Secure_Rate_Increases\" title=\"Factors that Secure Rate Increases\">Factors that Secure Rate Increases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/#How_to_Maximise_Your_Earnings\" title=\"How to Maximise Your Earnings\">How to Maximise Your Earnings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/#Operating_through_an_Agency\" title=\"Operating through an Agency\">Operating through an Agency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/#Always_Retain_Professionalism\" title=\"Always Retain Professionalism\">Always Retain Professionalism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/#Tax_Efficiency_using_a_Limited_Company\" title=\"Tax Efficiency using a Limited Company\">Tax Efficiency using a Limited Company<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Negotiate_Better_Rates\"><\/span>How to Negotiate Better Rates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Tip 1<\/strong> &#8211; Research the market rate for your niche Industry by comparing the market rate to the rate that you would normally charge or that your agency pays you.<br \/>\n<strong>Tip 2<\/strong> &#8211; Negotiate your contractor rates using facts from your market research.<br \/>\n<strong>Tip 3<\/strong> &#8211; Communicate with your client or agent openly and clearly by being prepared.  Showcase other projects you have completed to reflect your skills, quality of work and experience.<br \/>\n<strong>Tip 4<\/strong> &#8211; Keep up-to-date by monitoring online job boards, contractor publications and recruitment company salary surveys.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Acquiring_Rate_Increases\"><\/span>Acquiring Rate Increases<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To acquire a rate increase will depend on how you approach your client or agency. Always request this in writing using a professional tone via email. It should be well structured and include an introduction and a summary. Throughout the email you should ensure that you justify your request for a rate increase. Also mention that you are happy with the working environment and the team of staff that you work with. Suggest a review date where this can be discussed with your client in person.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Factors_that_Secure_Rate_Increases\"><\/span>Factors that Secure Rate Increases<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The key factors that secure rate increases by contractors are as follows:<\/p>\n<ul>\n<li>Maintain a solid relationship with all the client\u2019s employees<\/li>\n<li>Be professional<\/li>\n<li>Ensure job completion at agreed date<\/li>\n<li>Demonstrate expertise in your field<\/li>\n<\/ul>\n<p>These all contribute to making your client open to a rate increase as they value your contribution and see you as a member of their team that they can depend on.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Maximise_Your_Earnings\"><\/span>How to Maximise Your Earnings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To maximise your earnings you should ensure that you do not have gaps between contracts. A good policy to follow is to negotiate a high rate as possible that reflects both the scope of the project and your unique experience and expertise. Also ensure that any change in the scope of the project which increases your responsibilities can warrant an increase in the rate your request.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Operating_through_an_Agency\"><\/span>Operating through an Agency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Operating through an Agency is a good idea and can provide various benefits to contractors. Agencies are up-to-date with current market trends and should negotiate the best rate for you. They will also ensure that you have few gaps between contracts by constantly finding new contracts for you. It is important to be aware that the typical mark-up on your rate by agencies usually starts from 12% but can be as high as 20%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Always_Retain_Professionalism\"><\/span>Always Retain Professionalism<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To secure a successful rate increase by negotiating often depends on your professionalism and reputation. Both are valuable assets and need to be maintained to ensure solid relationships are built. The most important relationships to maintain are with your contract team which include your manager, your agency and your client. Your professionalism in the workplace will ensure that your reputation remains intact. When seeking new contracts, clients and mangers will be willing to hire you again and renew your contract if the relationship you had with them was professional.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tax_Efficiency_using_a_Limited_Company\"><\/span>Tax Efficiency using a Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Taking home as much pay as possible is a must for a contractor\u2019s success. A good option is running your contractor business through a Limited Company. This business structure is the most tax efficient option open to contractors.  At Fusion Accountants, our team of Expert Accountants can discuss how to open a Limited Company and be tax efficient to ensure that you maximise your earnings.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When Contractor Rates are market driven be sure to negotiate a better rate when demand in your niche market is high. However, ensure that you communicate with your clients and build a good relationship with them to facilitate future negotiations. The same principle applies if you work through an Agent. How to Negotiate Better Rates <a href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  Key Guide to Contractor Rates<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":218894,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4311],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Key Guide to Contractor Rates - Pearl Chartered Accountants &amp; Tax Advisers<\/title>\n<meta name=\"description\" content=\"Contract rates vary and are market driven you need to negotiate a better rate when demand in your niche market is high. in this guide explains this further.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/key-guide-contractor-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Key Guide to Contractor Rates - Pearl Chartered Accountants &amp; 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