Contracting is an increasingly common work style across the UK's professional sectors. Whether you're after more freedom, varied experience, or higher earnings, the appeal is clear. But contracting isn't just a career choice - it's a business decision.

Here's what you need to know to decide if it's the right move for you.

What is contracting?

A contractor offers services temporarily, often through a recruitment agency or directly to clients. Payment is usually on a daily or hourly basis, not via payroll

IR35 and Tax Considerations

IR35 determines how contractors are taxed.

Inside IR35: Treated as an employee for tax purposes

Outside IR35: Operate as a business, taxed accordingly

Always seek financial advice before choosing your route

The Upside of Contracting

• Often better pay than salaried roles

• Flexibility with time off (no approval needed)

• Work across industries and projects

• Faster skill development

• Build confidence managing finances and negotiations

The Downsides to Consider

• Lack of financial security during contract gaps

• No paid leave or employee benefits

• Isolation or lack of belong at times

• Payment delays (Especially in the public sector)

• IR35 confusion and risk of non-compliance

Contractor Types

• Conservative (agency-led)

• Independent consultant (self sourced work)

• Tendering for large scale projects

Newcomers usually start with the conservative contact route

Planning Your Transition

• Assess financial readiness (3+ months buffer ideal)

• Build your network (especially recruiters and ex-colleagues)

• Create a compelling contractor CV

• Speak to a specialist accountant

Resources to Explore

•  IPSE – The Association of Independent Professionals and the Self-Employed

  • HMRC IR35 Checker Tool

  • Being Freelance Podcast

  • Morgan McKinley Career Advice

Contracting can be a powerful career tool—but it’s not the right fit for everyone. If you’re self-driven, financially savvy, and ready to market yourself—it could be the shift you’ve been looking for.