Getting started in contracting.
Everything new contractors need to know — from choosing limited or umbrella, finding your first contract, and understanding IR35. 43 expert guides cover every step.
Understanding Contracting
Contractors work for themselves, selling their skills and time for a fixed period under a contract — usually paid by the hour. Whether you’re in IT, engineering, finance or another sector, the freedom of working for yourself is what draws people in: choosing when and where you work, which projects you take on, and when you take time off. You’re your own boss, often earning more than employees on the same project, with the variety of moving from contract to contract. Before you take the leap, understand your options — limited company, umbrella or PAYE — and how IR35 affects them. Outside IR35, a limited company usually works best; inside, an umbrella company is often simpler.
Check there’s a market for your skills before you quit. Talk to specialist contract agencies, research rates, and read our guides on finding work, writing a contractor CV, and choosing an accountant. Below you’ll find 43 expert guides covering everything from your first steps to your first contract and beyond.
Guides by topic
All first-timer guides
43 guidesGuideGetting Started
Is IT contracting the life for me? An overview
In this guide we explore the advantages and disadvantages of contracting and give 10 qualities that make a successful contractor.
GuideGetting Started
5 signs you are ready to become a contractor
Wading out into freelance waters is much more reassuring when you can see the following five over your shoulder.
GuideGetting Started
Life as a contractor: the good, the bad and the ugly
Succeeding at contracting is far easier if you understand its risks and rewards.
GuideGetting Started
What's the difference between a contractor and a freelancer?
While these are not legally distinct roles there are some fundamental differences.
GuideGetting Started
Can graduates become contractors?
An increasing number of graduates are choosing the contracting lifestyle over traditional grad jobs in the UK.
GuideGetting Started
Quick start guide to limited company contracting: seven steps
From business planning to sorting your accounts, starting out as a contractor can feel like a lot. Here's how new contractors can forget the faff and hit the ground running.
GuideGetting Started
A first-time contactor's guide to setting up compliantly to start UK contracting
Overview to what's needed to begin contracting, ranging from mindset and motivation, to understanding 'Ltd' and 'PSL.'
GuideGetting Started
Top 10 tips for new contractors
How to succeed as a first-time contractor with technology skills.
GuideGetting Started
Is it better to be a contractor or an employee? The pros, cons, and finances
Taxing and non-taxing ways to address the elephant in the room, which has been led out by the imminent IR35 changes.
GuideGetting Started
From perm to contract: making the jump to contracting
Resisting the urge to rush is key to getting right what's a daunting but lucrative decision.
GuideGetting Started
Do I quit before or after I land my first contract?
Contracting expert helps a time-poor permie get his ducks in a row.
GuideCompany Setup
Setting up your contractor company - Limited, Umbrella or PAYE?
An overview of the different options available to you and advice on the best way forward.
GuideCompany Setup
Limited or umbrella? Making the right choice
An umbrella company and a limited company each represent two of the most common business structures that contractors use. But, which one is the best option for you?
GuideCompany Setup
Advantages and disadvantages of a limited company
It's important to consider both the benefits and the downsides when choosing your business structure.
GuideCompany Setup
Should I go 'Ltd' or umbrella in 2019?
IR35 is now even managing to complicate New Year's resolutions.
GuideCompany Setup
Has sole trading got the edge on 'Ltd' contracting?
Adviser attests to the 'pros' of being self-employed, but finds it has more 'cons' than a PSC.
GuideCompany Setup
Umbrella companies for nurses, teachers, and doctors
Why public sector workers are choosing to work through brollies.
GuideCompany Setup
Umbrella company timesheet: overview for contractors
Tips, tricks and heads-ups to ensure it won't be your timesheets that slip you up.
GuideFinding Work
Researching your market
How to ascertain demand for your skills and sell your strengths.
GuideFinding Work
How to find IT contract work - online searching
There are several key ways to find your first contract role. This section helps you on your way if you're new to IT contracting.
GuideFinding Work
How to find IT contract work - networking and offline searching
"It's not what you know, it's who you know" and other ways to keep off the bench.
GuideFinding Work
IT contractor guide: how to write a good CV
Your prospective hirer will very likely be bombarded with CVs for any given vacancy. We tell you how to make the best of your CV.
GuideFinding Work
Why companies employ IT contractors – A contractor's view
The advantages and disadvantages of hiring contractors from a client's perspective.
GuideFirst Contract
Your first contract
Once you have secured your first contract role, agreed a rate and a start date, a contract needs to be signed...
GuideFirst Contract
I've got my first contract, now what about IR35?
Congratulations! You've done the hard bit. We now need to consider IR35. Click here for our guide, together with details of how to get your contract expertly reviewed.
GuideFirst Contract
Diary of a first-time IT contractor – Lessons learnt
Owen spots the permies, discovers where not to log the vitals, and knuckles down to embrace IT contracting.
GuideFirst Contract
Diary of a first time IT contractor - The first day
Owen settles in with a change of PM, a lack of interest from his colleagues but a gut feeling he's made the right decision.
GuideFirst Contract
Negotiating a rate rise: five fundamentals
First-timers can't afford to flinch when a potential premium is on offer.
GuideFirst Contract
Six questions that stop your invoice getting paid
What agents, clients and HR will bug you about where your invoice leaves room for doubt.
GuideMoney Matters
Do I need an accountant?
If you have decided to trade through your own Limited Company then you really ought to have an accountant to help you with the various forms, obligations, taxes etc.
GuideMoney Matters
Choosing a Limited Company Accountant
Everything you need to know about finding the right accountant for your limited company.
GuideMoney Matters
Financial Matters - No nonsense summary!
To put it simply... If you are working through a limited company, you will pay yourself a monthly salary (many take a small salary). Those caught by IR35 will pay themselves a 'deemed salary'.
GuideMoney Matters
A new contractor's guide to self-assessment
Five steps to help keep the taxman off your back when filing your first tax return.
GuideMoney Matters
What tax changes will affect the take-home pay of new contractors?
Don't act in haste but do get clued up, whether the measures are personal or business.
GuideMoney Matters
Can I still get a mortgage as a contractor?
The answer is yes, and sometimes with deals better than you could get as a permanent employee! Click here to find out more.
GuideMoney Matters
Contractor Accountants in Manchester
Contractor accountants in Manchester can help manage the administration required to run a limited company.
GuideMoney Matters
Contractor Accountants in London
Contractor accountants in London can help manage the large amounts of administration required to run a limited company.
GuideInsurance & Legal
Financial matters - IT contractor insurance
There are various insurances that you might need, but Professional Indemnity is the must have for most contractors these days.
GuideInsurance & Legal
IR35: the end of a dream - A contractor's view
2001 saw with the introduction of the now famous IR35, more politely called the "Intermediaries legislation."
GuideInsurance & Legal
S660 'income splitting' and Managed Service Company legislation – What's it all about?
A brief overview of how these laws affect you as a contractor.
GuideAdvanced Topics
Final considerations
So, you've found your job, beaten IR35, got yourself an accountant and started trading. What else is there? Well, what about training to keep your skills up to date, what happens if you get sick etc. Click here for ways to mitigate these challenges.
GuideAdvanced Topics
Supply teaching using a limited company
Advice on how to work through a limited company in the education sector.
GuideAdvanced Topics
Coming to the UK for Contract Work – a UK Expat Contractor's Guide
If you want to work as a UK expat contractor, there are a few things you need to know.
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Getting Started Resources
Historically, most contractors worked through their own Limited Companies. With IR35, that may no longer be the best option. As a rule of thumb: outside IR35, a Limited Company usually works best; inside IR35, an Umbrella Company is often simpler. Your options are PAYE through the agency, umbrella, or your own limited company.
If contracting is still attractive and you believe you can cope with the disadvantages, the next step is to do some research. Don't give up your job or spend money setting up a company until you are sure there is a market for your skills as an IT contractor. Talk to specialist contract agencies in your industry to see what contracts might be available, whether you are suitable, and how much you could earn. You will also need to look into operating your own business — forming a company online, professional indemnity insurance and a business bank account.
Calculators
Tax, take-home and IR35 calculators
Contractor Readiness Checker
Check if you're ready to start contracting
Tax Investigation Risk Profiler
Assess your HMRC investigation risk
Accountants
Compare contractor accountants
Umbrella Companies
Compare umbrella companies
Mortgages
Contractor mortgage advice
Job Search
Find contract roles
Market Rates
Contractor day rates
What is IR35?
IR35 rules explained
Contracts
Contract templates and advice
Getting Started in Contracting: FAQs
Getting started in contracting involves understanding the advantages and disadvantages, choosing between limited company or umbrella company structures, finding your first contract, and setting up proper accounting and insurance. Our comprehensive guides cover every step of the process.
The choice between a limited company and umbrella company depends on your circumstances, IR35 status, and contract length. Limited companies offer more control and tax efficiency for outside IR35 contracts, while umbrella companies provide simplicity and are suitable for inside IR35 work.
If you trade through your own limited company, having an accountant is highly recommended to help with forms, obligations, taxes, VAT, self-assessment, and compliance with HMRC requirements.
Find your first contract through online job boards, recruitment agencies, networking, LinkedIn, contractor forums, and by ensuring your CV is optimised for contractor roles. Our guides cover both online searching and networking strategies.
IR35 is tax legislation designed to combat tax avoidance by workers supplying services through intermediaries who would be employees if contracted directly. It affects how contractors are taxed and whether they can operate through a limited company efficiently.