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S/employed dilemma hourly rate after retirement

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  • lincroft1710
    lincroft1710 Posts: 18,930 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 10 February 2016 at 5:47PM
    Even at £12.50 ph you're still better off now you are an OAP.

    Let us assume £12.50 ph for 30 hrs each month , therefore 12.5 x 30 x 12 = 4,500

    Add on private pension of 6,000 = £10,500, which is under tax threshold of £10,600 so no tax paid.

    Add on OAP pension 7,000 = £17,500, £6,900 above tax threshold so tax @ 20p per£ = £1380, so your notional net income now = £16,120 as opposed to £10,500 pre OAP

    If you raise your charge to £16, then 16 x 30 x 12 = £5760 + £6000 + £7000 = £18,760 - 10,600 = 8160 @ 20p = £1632 = £17,128 so £1000 better off, than at £12.50 ph
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • As a possible solution may I suggest that as you are self-employed you seek alternative jobs outwith and cut your hours back. In terms of asking for a pay rise could you not just ask for a 10% rise and that way you will be a little less out of pocket?
    Also, could you explain the increase as market forces and having to upgrade your own equipment for the job etc?
    :rotfl:Survey Queen/Poundland Fanatic:rotfl:




  • HappyMJ wrote: »
    You could put your rate up from £12 to £14 immediately and in a year put it up to £16 which wouldn't be so much of a shock to your clients as a single jump from £12 to £16.

    ^This. You're less likely to lose clients but you'll still be gaining more.

    It's fine raising the price to get more, but it's a daft move if you lose clients (even more so if you struggle to get new ones at that price) as despite charging more you'll be coming out with much less.

    Could it also be an option to offer something more for a higher price? So charge £14 for the usual, £16 for the something extra (for example, if you offer prints of the photographs you take perhaps offer an extra print or slightly better frame). Something that isn't a big cost or effort to you, but clients may want. You get extra, client gets a little extra if they go for it, if not you're still charging a bit more than before.
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