Is Contracting Right For You?
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
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.
