Most self-employed electricians pick a number — £35, £40, £45 per hour — based on what other electricians seem to charge, or what feels "about right." This is guesswork, and guesswork costs money.
If your rate does not cover your overheads, you are subsidising every customer from your own pocket. If it does not include a profit margin, you are working for wages — with none of the benefits of employment (holiday pay, sick pay, pension, employer NI contributions). And if it does not account for non-billable time, you are overestimating how much you actually earn per hour.
The difference between a correctly calculated rate and a guessed one can be £10 to £15 per hour. Over 1,300 billable hours per year, that is £13,000 to £19,500 in lost income. Not lost to tax, not lost to expenses — lost to poor pricing. That money should be in your pocket.
This guide walks you through the exact calculation. By the end, you will know your minimum viable hourly rate — the rate below which you lose money — and your target rate that delivers the income you deserve.