How to Negotiate Your Daily Rate as an IT Contractor

Setting and negotiating your daily rate as a contractor can feel intimidating — but knowing your worth is crucial to sustaining a successful freelance IT career.

Know the Market Rate
Research the going rate for your skillset, experience level, and industry sector. For example, a Salesforce Developer in London might command £500–£650 per day, while a Multivalue specialist could earn more due to niche expertise.

Factor in Your IR35 Status
Inside IR35 roles tend to offer less take-home pay — so rates should reflect the lack of tax efficiency. Don’t be afraid to walk away if the figures don’t stack up.

Be Confident, Not Arrogant
Justify your rate with examples of your past success, the value you bring, and any certifications or niche skills you offer. If you’re working through an agency, ask them to support your negotiation based on market insight.

Final Tip: Never undersell yourself out of fear — especially in high-demand areas like ERP, Salesforce, cybersecurity, and development. Your skills are valuable.