Typical rates of pay and time scales

Daily charge-out rates vary enormously and are greatly influenced by:

Supply and demand dynamics - if it's a popular role with a healthy supply of interims, rates will be lower, whereas if the position is again popular but there aren't many skilled interims the daily rates will be higher. This is why it's always important to keep an eye on the market and keep your skills up to date; this will enable you to spot emerging markets before other interims.

Challenges of the role - the tougher the challenge - the higher the daily rate! This is true in most cases however it does dependson the role and the person, just because the client thinks the role is challenging it doesn't necessarily mean you will.

Level of responsibility - it goes without saying, the more senior the position the higher the daily rate, except where the skill set is rare and in demand. In which case, highly skilled niche roles in valued corporate positions may carry exceedingly high daily rates despite being relatively junior positions. 

Track record and experience - the more successful your experience the better, remember clients are looking for CV's with key achievements and not just a list of job responsibilities. If your CV doesn't shine you'll find it harder to get those great positions. Take time, seek advice and feedback and continually work on your CV. Always have an up to date version available, you never can tell when it will come in handy.

Length of assignment - short assignments often pay more, luckily enough short contracts often get extended. 

In reality interim assignments can last for any period of time, but more usually it would be between a week and a year. The key thing to remember though is that Interim Management is a career choice, not just something to do whilst searching for a permanent job!

A quick search on interim manager sites like Archer Mathieson will help in gauging the typical rates. As a rough guide interim managers typically earn from £400 to £900 for a middle/senior manager right up to as much as £2,000 per day for a high calibre executive with boardroom experience. 

Clients have told us as a general rule 1% of the annual salary is applied as the daily rate e.g. £100k salary works out to be £1,000 per day. Obviously, this is just a guide and shouldn't be used as a negotiating tool - market forces and supply and demand are the real forces that determine daily rates.

You may also find the following pages helpful:

Becoming an interim manager
Benefits of working as an interim manager
Finding a job as an interim manager

Administrative and practical issues
Ask any accountant and they will tell you the most tax efficient way to work as an Interim Manager, contractor or freelancer is to work through your own limited company. Forming a company isn't difficult and only takes about five minutes you'll also need to have professional indemnity insurance and on a more personal level you will also need to:

• Be organised and efficient in all aspects of your company administration.
• Provide a cost-effective alternative to a permanent, highly-paid executive.
• Offer flexibility on location and be able to commit to a weekly commute if necessary for the duration of the assignment.
• Be financially secure and able to cope with non-billing periods.
• Be available at short notice.

Where can I get more advice?
It’s well worth talking to the Interim Management Association (IMA). The IMA is not a recruitment agency in itself, but instead it represents the majority of established and leading Interim Management recruiters currently operating in the UK market. One such IMA member is Archer Mathieson who come highly recommended by a number of our clients. You may also like to visit the IMA Institute's site which is the professional body for professional Interim Managers. 

What types of roles are available?
Pretty much any role which you could carry out as a full time employee could be handed by an Interim Manager. But as already outlined, Interim Managers are generally hired for middle to senior management type roles, right up to Managing Director or even CEO level, and in any industry sector.

Accountancy services for Interim Managers from SJD Accountancy
If you are already an Interim Manager operating through your own limited company, or if you are thinking of setting up as an Interim Manager or even working through an umbrella company and want to go limited, then SJD Accountancy can give you a wealth of information and advice - as well as providing a low cost fixed-fee accountancy service which has been developed specifically for Interim Managers, freelancers and contractors. 

SJD Accountancy is the UK's largest specialist provider of fixed fee, limited company accountancy services to Interim Managers, contractors and freelancers. We've been acting for clients across the UK since 1992 and have more than 10,000 already.

If you have any question about contracting or would like any further advice please call our New Client Services helpdesk on 0500 152 500 or email jaime.thorpe@sjdaccountancy.com.

We are the only national specialist firm of accountants with offices in all major UK cities, so you’ll never be far from your accountant. SJD also has more qualified staff than any other firm in our market, with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well. All of our clients receive:

• Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
• Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
• Money back service guarantee. All your telephone calls and emails will be answered the same day or we will refund your monthly fee.
• Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.

We offer an all inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns.

All this for a fixed monthly fee of £95 plus VAT, which is one of the lowest prices in the market.

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!

You may also find the following pages, guides and case studies useful: