The rise in freelancer rates was down to increased demand for contracted work, the Ipse report said. Customers have also been hit as contractors passed on the cost of complex “IR35” tax rule changes, which came into effect in April and large numbers of self-employed taking home less money.
Ipse’s Andrew Chamberlain defended the increase in costs for consumers. He said it had been a “mixed picture” for freelancers and day rates had not risen for a number of years. Earnings were catching up with their prices following the worst of the pandemic, he added.
“Tax rule changes have also lumped the self-employed with an extra burden, which needs to be shared and passed on down the chain. They must also cover their own rising costs, as inflation is something that is affecting everyone at the moment,” he said.
So-called managerial freelancers now bill clients £205 more than last year, charging £656 a day on average. This included hairdressing and beauty salon managers and owners, property managers and IT experts with their own limited companies.
“Professional freelancers”, including architects, accountants and therapists now charge £562 a day on average, £82 more, “Technical freelancers” such as musicians, personal trainers and interior designers, charge £393 a day, up more than £100.