The short answer
Charge a day rate when the scope is unclear or likely to change, and a fixed price when you can describe the work and estimate it with confidence. Many freelancers do both: a fixed price for each defined stage, and a day rate for anything outside it. Either way, the contract has to say what the price covers, because that is where the disputes start.
Day rate
- Good when the work is open-ended, the client is still working out what it wants, or you are working in their team on their schedule.
- The risk is on the client, which many clients dislike: the total isn't known in advance. Offer an estimate or a cap to reassure them.
- Define a day. The law doesn't set a freelancer's working day, so say how many hours it is, how part days and travel time are charged, and whether there is a minimum booking.
- Say what happens if the client cancels a booked day at short notice.
Fixed price
- Good when the deliverable is clear, such as a logo, a website or a report, and you can estimate how long it takes.
- The risk is on you: if it takes longer, you earn less. Protect yourself with a precise scope and a fixed number of revision rounds.
- Write down the change process. Extra work is priced and agreed before you do it. See scope creep.
- Split it into stages with a deposit and payments at set points, as in deposits and kill fees.
- Say what is paid if the client cancels part-way: the work done so far, plus costs you can't get back.
Hourly
An hourly rate suits short, unpredictable jobs such as advice, support and fixes. It needs a record of your time, and it makes the client watch the clock, which is why many freelancers prefer a day rate or a fixed price once a job is bigger than a few hours.
Does it change your tax status?
No pricing method decides it on its own. HMRC looks at how you really work: who controls it, whether you can send a substitute, whether the client must keep giving you work, and who carries the financial risk. A fixed price for a defined project, where you bear the cost of putting mistakes right, points towards being in business on your own account, and so can a day rate for defined work done your way. A day rate for open-ended work done as part of the client's team looks more like employment. See IR35 and your freelance contract and gov.uk.
In AgreeVia
The Freelance Services Agreement lets you charge a fixed fee, a day rate or an hourly rate, or list each piece of work with its own fee and have the total worked out, and it has terms for extra work, so a day rate for extras can sit beside a fixed fee for the main job.
Questions people ask
Can I mix a fixed price and a day rate?
Yes. List the defined work with a fee for each piece, and agree anything outside it in writing, at your day rate, before you start.
How long is a day?
There's no legal answer for a freelancer, so define it in the contract. 7 or 8 hours is common, with a rule for part days.
Should I quote my rate with or without VAT?
To a business client, state it excluding VAT if you are VAT registered, and say VAT is added.
This guide explains the general position in the UK as we understand it on 25 October 2026. The law differs between England and Wales, Scotland and Northern Ireland, and it changes. If something important turns on it, talk to a solicitor or an accountant.
Templates and tools for this
Send your first agreement free
Send a contract that sets out your day rate or fixed price and what it covers, and have your client sign it from a link.
Free for 3 documents a month, no card needed. AgreeVia works in your browser and is live on Google Play. Coming soon to the App Store.