Five Things to Consider Before Becoming a Contractor in 2026:

Making the move into contracting work can open doors to exciting new opportunities. For many professionals, it’s a way to take control of their career, gain exposure to a variety of projects, and boost their earning potential. But with freedom comes responsibility, and there are a few important realities to consider before you take the leap.

At V7 Recruitment, we work with contractors from a wide range of industries and backgrounds, and we’ve seen first-hand how rewarding the move can be when it’s approached with the right preparation and mindset.

Here are five key things to consider before becoming a contractor, and how to make them work in your favour.

1. Embracing independence and flexibility

One of the biggest attractions of becoming a contractor is freedom. You can choose the projects that excite you, shape your own working schedule, and develop a career that truly fits your lifestyle.

That independence is empowering, but it also means taking more ownership of your time. You’ll need to stay organised, proactive, and comfortable managing yourself without the structure of a permanent role.

The good news? Many professionals who switch to freelance and contract work find that once they adapt, they thrive. Working independently often brings renewed confidence and a stronger sense of purpose. You’re in control of your professional direction, and that can be incredibly motivating.

This is one of the most important things to consider before contracting, because it’s where the biggest rewards, and the biggest adjustments, often lie.

Top Tip: Create a daily structure that works for you. Set clear working hours, plan your week in advance, and use productivity tools to stay on track. Independence doesn’t mean chaos.

2. Understanding the financial trade-offs

Contractor pay rates can be very appealing. Higher day rates often reflect the specialist skills and flexibility you bring to a project. You also have the potential to increase your income by managing your workload efficiently or taking on multiple contracts over time.

However, it’s important to go in with clear eyes. Contractors cover their own costs, from holidays and pensions to insurances, equipment, and accounting fees. You’ll also need to budget for time between contracts and set money aside for taxes and IR35 compliance.

With good planning, this side of contracting can work in your favour. You gain control over how and when you’re paid and can build a financial cushion that gives you more freedom. Many contractors enjoy the sense of security that comes from managing their own finances rather than relying on an employer.

The key is to treat yourself like a business, plan, stay on top of your accounts, and celebrate the flexibility that comes from overseeing your own income.

If you’re unsure where to start, a specialist contractor accountant or a recruitment consultant familiar with IR35 can be invaluable.

Top Tip: Treat yourself like a business. Track income and expenses closely, save regularly for tax and downtime, and consider using accounting software or a specialist to stay ahead.

3. Taking ownership of the practicalities

Becoming a contractor means stepping into the role of business owner, and that comes with some extra admin. From choosing between a limited company and an umbrella arrangement, to handling invoicing and insurance, there are a few boxes to tick before you start.

At first, this can sound daunting, but many contractors find the process surprisingly empowering. Setting up your business gives you professional credibility, allows you to manage your taxes more efficiently, and helps you understand your value in the marketplace.

With the right support, such as a specialist accountant and a recruitment partner experienced in contractor placements, the practical side of contracting becomes second nature. You’ll soon find that the freedom to run things your way, far outweighs the paperwork that comes with it.

Top Tip: Get the foundations right from day one. Speak to a contractor accountant, review your insurance cover, and understand which setup (limited or umbrella) best suits your goals.

4. Shaping your own work-life balance

One of the biggest benefits of contractor life is flexibility, you can plan your working life around your personal priorities. Whether that means taking longer breaks between projects, working remotely, or exploring new locations, contracting offers a level of autonomy that’s hard to find in permanent roles.

Of course, flexibility comes with responsibility. You’ll need to manage your own time effectively, plan for unpaid leave, and occasionally adapt to the client’s schedule. But many contractors enjoy the balance they’re able to create once they’re in control of their diary.

Some even use the freedom to pursue side projects, professional development, or time with family that wasn’t possible before. By setting clear boundaries and communicating openly with clients, you can design a work-life balance that works for you.

Top Tip: Be intentional with your schedule. Block time for rest, training, and personal goals. A balanced contractor is a better-performing contractor.

5. Building a long-term contracting career

Contracting isn’t a temporary fix; it’s an opportunity to build a flexible and successful career. Each project brings new experiences, skills, and industry contacts. You’ll work with a wide range of clients, technologies, and teams, which can dramatically expand your expertise and confidence.

The key to long-term success as a contractor is continuous development. Because you’re not tied to one employer’s training plan, you can focus on the skills and certifications that matter most to you. Investing in your professional growth keeps you competitive and ensures you stay in demand in the contracting market.

It’s also worth thinking about how you’ll market yourself. Keep your CV and online profiles updated, highlight project achievements, and nurture relationships with recruiters and clients who hire contractors. A strong reputation can lead to repeat work, referrals, and higher-value contracts.

In short, you’re not just taking on contracts; you’re building a personal brand as a professional contractor. And in today’s market, that’s a powerful asset.

Top Tip: Stay visible and connected. Keep learning, network with industry professionals, and regularly refresh your online presence to attract top opportunities.

Becoming a contractor can be one of the most rewarding career moves you’ll ever make. It offers freedom, variety, and the chance to take full control of your professional journey. While it comes with its share of challenges, from financial planning to self-management, those who prepare properly often find the benefits far outweigh the risks. With the right mindset and support network, contracting can give you the best of both worlds: independence and opportunity.

At V7 Recruitment, we specialise in supporting professionals who are ready to take that step. Whether you’re exploring your first contract role or already experienced in the contracting world, our consultants can guide you through every stage, from understanding and current contractor market rates, to securing the best projects across engineering, construction, and technology sectors.

Thinking about making the move into contracting?

Contact the V7 Recruitment team today to discover how we can help you take the next step in your career with confidence.