A step-by-step guide to help you understand what is involved before you make the move.
Before you think about setup, tax, or job boards, start with the bigger question: does contracting actually suit your goals, personality, and appetite for uncertainty?
Why people go contracting
Lifestyle trade-offs
Risk tolerance
Skills and marketability
Family and financial considerations
Worried you'll miss the security of permanent employment? Here's what to expect: contracting offers freedom but requires self-discipline and comfort with uncertainty.
Know the numbers before you make the leap.
Day rate versus salary is not a straight comparison
No paid holiday or sick leave
Gaps between contracts
Pension and benefits differences
Tax planning basics
Emergency fund expectations
Concerned about the financial gap? Here's how to plan for it: calculate your true cost of living, build a buffer, and understand your actual take-home after tax.
Understand your setup options and the trade-offs of each.
Limited company
Umbrella company
Sole trader, where relevant
Basic IR35 awareness
Unsure which structure is right for you? Each has different tax implications, admin requirements, and flexibility. We have a detailed guide on this.
Get the practical essentials sorted.
Registering a limited company
Choosing an accountant
Opening a business bank account
Setting up bookkeeping
Registering for taxes where required
Should you set up before you have a contract? No. Get the offer first, then move quickly on setup once you know it's real.
Cover the essentials that keep you protected and organized.
Insurance
Invoicing
Record keeping
Contracts and paperwork
Pension considerations
Basic financial admin
Do you really need insurance? Yes. Professional indemnity and public liability are standard and relatively affordable.
Position yourself for the market.
Contractor-style CV
LinkedIn profile
Clear value proposition
Niche positioning
Rate expectations
Evidence of delivery and results
How do you position yourself differently as a contractor? Focus on outcomes, not just tasks. Show what you've delivered, not just what you've done.
Start looking for the right work.
Recruiters
Job boards
Existing network
Direct outreach
Repeat business and referrals
Should you rely on recruiters? They're useful but not your only option. A mix of sources gives you the best chance of finding good work.
Read the deal, not just the day rate.
Payment terms
Notice periods
Scope and deliverables
IR35 position
Renewal likelihood
Hidden risks
What should you watch out for? Payment terms matter as much as rate. A high day rate with 60-day payment terms is worse than a lower rate with 30-day terms.
Build credibility from day one.
Good onboarding habits
Fast relationship building
Clear communication
Reliable delivery
Invoicing discipline
Reputation management
How important are the first few weeks? Critical. Your reputation as a contractor is built fast and damaged quickly. Deliver early, communicate clearly, and be reliable.
Turn early experience into long-term advantage.
Build a buffer
Learn what kind of contracts suit you
Improve your positioning
Raise rates carefully
Build repeat demand
When should you raise your rates? After you've delivered results and have repeat demand. Don't raise rates between contracts—do it with existing clients who value you.