The Guide to Becoming a Contractor

Contracting: Is It Your Next Career Move?

Contracting is fast becoming the career choice for thousands of UK professionals. With the traditional ‘job for life’ on the decline and many seeking greater flexibility, it’s no surprise this way of working is on the rise. If you’re considering joining their ranks, this guide will help you break down the process and set yourself up for success.

What You’ll Need to Get Started

Before you dive in, here’s a quick checklist of essentials:

• A clear idea of your professional goals and what you want from your career

• A list of your core skills and the industries you want to target

• A willingness to manage your own assignments and workflow

• Basic understanding of tax and compliance (or a partner to help)

Tip: Partnering with a compliant umbrella company can simplify the admin, giving you peace of mind as you start out.

Step-by-Step: Becoming a Contractor

1. Decide if Contracting is Right for You

Moving from a 9-5 job to contracting is a big step. Take time to reflect:

• Do you value flexibility and independence?

• Are you comfortable with change and uncertainty?

• Do you want more control over your workload and earnings?

Consider making a pros and cons list to compare contracting with permanent employment. And remember, you’re not alone—speak with experts for tailored advice.

2. Find Your First Assignment

Once you decide to go for it, finding a contract is your next focus. Here’s how:

• Register with specialist recruitment agencies

• Regularly check job boards for contract roles

• Use LinkedIn and other social platforms to network and spot opportunities

Building relationships in your target industries can open doors to more assignments.

3. Get Support from the Experts

After securing an assignment, set up your working arrangements. Many first-time contractors choose an umbrella company. Here’s why:

• The umbrella company employs you, handling PAYE income tax and National Insurance

• You receive statutory benefits: holiday pay, sick pay, and parental leave

• You submit timesheets and expenses—the umbrella sorts the rest

“Working with an umbrella company is a breeze. All you need to do is provide your timesheets and expenses, and they’ll sort out the rest.”

4. Develop Your Skills and Watch Your Career Grow

Contracting gives you exposure to diverse roles and projects. Each assignment helps you:

• Sharpen and broaden your professional skills

• Build a varied portfolio

• Discover new sectors and specialisms

Proactively seek feedback and training to stay relevant and in demand.

5. Stay Up to Date With Industry Trends

To stand out, keep your skills current. Here’s how:

• Follow industry news and emerging trends

• Upskill in niche areas (think certifications, new tech, or legislation)

• Offer clients in-demand expertise

Specialists often command higher rates and a steadier flow of contracts.

6. Consider the Next Step: Your Own Limited Company

After you’ve built experience and confidence, you may want to launch your own limited company. Benefits include:

• Potentially more tax-efficient income

• Being your own boss—greater autonomy

• Building a business brand

Important: Get advice before making the jump. Tax, compliance, and company admin can be complex.

Troubleshooting Common Concerns

If you’re stuck or unsure, reach out for a chat with a contractor specialist. A quick call can clarify your next move.

Next steps:

• List your career goals and what you want from contracting

• Register with relevant agencies and polish your CV

• Contact a reputable umbrella company for a free consultation

• Keep learning and adapting as the market evolves

Contracting can be the launchpad for new opportunities and a fulfilling, flexible career. Take your first step today—support is just a conversation away.