With the cost of living going up many freelancers will be looking at ways to save money or boost their income.

One of the main benefits of working as a freelancer is that it’s easier to find additional work when you need to.

But this doesn’t help if you don’t want to take on any additional projects or work longer hours. If you’re in this situation and you want more money then another option is to increase your rates.

Is now a good time to increase freelance rates?

Now is a great time to increase your rates as a freelancer.

For the first time since records began, there are currently more job vacancies than unemployed people in the UK.

Careers coach and leadership development consultant Jenny Garrett told Sky News: “There is a war on talent, with employers trying to hold onto good people and avoid the 'great resignation’”

“If you're in an organisation that's doing well financially, you'll be well-placed to ask for a pay rise.”

A candidate shortage also usually means that there are more temporary work opportunities that freelancers can take advantage of.

How can I increase my freelance pay?

Discussing pay is enough to make many Brits run for the hills, let alone asking for a pay rise.

But when it comes to advancing your freelance career, this is something you should get comfortable with.

The following advice should help when it comes time to have the difficult conversation.

Work out how much you should get paid

When you’re asking for a pay increase, one of the most important things is that you know how much you want.

There are some good ways to find a market rate for your services.

You can check jobs websites like Indeed and Glassdoor to find out how much a full-time salaried employee would get. Remember though, you should charge more as a freelancer because salaried employees get better benefits and more job security.

The other way you can find your market rate is by speaking to peers. This could be other freelancers, professional organisations in your industry or even other potential clients.

Increase your value

If you want to increase your rates it’s a good idea to increase the value that you offer to clients or potential clients.

While it’s always good to sharpen your skills, it can take a long time to translate this extra training into a higher rate of pay.

Other things you could try include updating your LinkedIn account, refreshing your portfolio or offering additional services that complement your current skills. These things can all make you stand out from the crowd.

Negotiating a higher rate

This can be the hardest part of the process, especially if you’re talking to your existing clients.

There are some things to remember:

• Ask new clients what their budget is before sharing your rate
• Don’t get rushed into quoting for new jobs. Say you need to take some time to work out costs and try to collect as much information as possible
• Review your rates regularly and give clients plenty of notice before increasing
• Get clear on why you deserve a rate increase and make sure you explain your reasoning clearly to your clients. Some reasons could be that you’ve got more experience, you’re taking on more responsibility or that the market value for your services has increased
• Be prepared to negotiate but remember what you want and make sure you stay cool throughout the process.

Need help managing freelance payments and taxation? Speak to a member of our team today. Call: 01625 546 610.