3.01.2012

Enterprise - Craft - daily charge rates.

Nice one Joe!

We calculated our overheads based on standard expenditure costs including rent (at £399/month at Duke Studios); software - Adobe Creative Suite, MS Office and various studio equipment, travel and research costs and so on.  
Based on an initial £25,000 salary for year 1 (£17,127 after national insurance and income tax), our annual income required is £100,000 alongside the total overhead costs of £17609.05. Using these values, and based on 244 available work days, our minimum daily charge rate as 'Craft' is £482.  
As we intend to make a profit in the first year to account for various contingency costs (including small business loans and dividends), our actual daily charge rate is £600. This will provide an annual pre-tax profit of £28,792 and a total net profit of £23,033.60. However, the amount we can charge can be anything above £482.



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