Could contracting be the career change you didn’t know you needed? We explore why more women are considering working for themselves, the benefits, the risks and what you need to know before taking the leap.

What if the next step in your career wasn’t another promotion, another permanent role or another year of waiting for someone to recognise your value?

What if it was working for yourself?

That was the question at the heart of The Glass Ceiling Called: Have You Considered Contracting?, an event hosted by Lucy Hornsby and Sophie Hussey to explore what contracting could offer women looking for more control over their working lives.

We talked about career transitions, money, confidence, IR35, setting up a business and the realities of working independently. We also discussed the things that can stop women from taking the leap, even when their existing working arrangements aren’t giving them what they need.

Because let’s be honest. Contracting can sound brilliant in theory, but when you start thinking about where your next paycheque is coming from, how tax works and whether you’ll ever get another job, it’s understandable to have questions.

So, let’s get into it.

1. Why consider contracting in the first place?

Everyone has their own reasons for considering contracting, but two themes came through strongly in our conversation: autonomy and opportunity.

For Sophie, redundancy became the catalyst for launching her own business. Rather than returning to a permanent role with restrictions on what she could do, she saw an opportunity to build something on her own terms.

For Lucy, contracting offered a way out of career stagnation, with the potential for better financial rewards and greater flexibility.

Neither story is unusual. Sometimes the decision to contract comes from wanting something different. Sometimes it comes because circumstances force us to reconsider what we thought our careers would look like.

And sometimes, it’s simply about recognising that the traditional career ladder isn’t necessarily taking us where we want to go.

Permanent employment can offer stability, benefits and a sense of security. But it doesn’t automatically guarantee progression, meaningful work or regular salary increases. You can be highly experienced, consistently deliver results and still find yourself waiting for the next opportunity to move forward.

Contracting offers another route.

It can allow you to take your existing skills into different organisations, work on projects that interest you, negotiate your rates and build a career around the kind of work you want to do.

That doesn’t mean contracting is always better than permanent employment. It means we should be looking at all the options available to us, rather than assuming there’s only one way to build a successful career.

The question isn’t just whether you can afford to contract. It’s also whether your current way of working is giving you what you need.

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2. The biggest barriers aren’t always about ability

One of the most important things to recognise is that the concerns people have about contracting don’t necessarily reflect their ability to do it.

You might be brilliant at your job, experienced in your field and the person everyone turns to when things get complicated. Yet the thought of working for yourself can still feel daunting.

What if you can’t find another contract? What if you don’t understand the tax rules? What if you earn less than expected? What if you make a mistake?

These are legitimate questions, and they deserve proper answers.

But there’s a difference between understanding a risk and allowing uncertainty to make the decision for you.

You don’t need to know everything before you start. You do need to understand the areas where you need support, the financial commitments involved and how you will manage periods between contracts.

That might mean building up savings, researching the market, speaking to other contractors or getting professional advice before making a move.

It could also mean starting with conversations rather than immediately handing in your notice.

Talk to people doing the kind of work you’d like to do. Find out what organisations are buying your skills, what rates are realistic and how people secure their next contract.

You might discover that contracting is right for you. You might decide it’s not the right time. Either way, you’ll be making a more informed decision.

And remember, you don’t have to work everything out alone. This is one of the reasons communities like Women Who Contract exist. Sharing experiences, asking questions and learning from people who’ve already navigated the process can make the unfamiliar feel much more manageable.

3. What are the real benefits of contracting?

Let’s talk about the things that make contracting appealing.

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Greater earning potential

Contracting can offer the opportunity to earn more than you might in a comparable permanent role, particularly when you have specialist skills that organisations need for specific projects.

But a day rate isn’t the same as a salary.

When you work for yourself, you need to account for time between contracts, holidays, pension contributions, insurance, accountancy fees and other business expenses. Your tax position will also depend on your working arrangements.

The headline rate is only part of the picture. What matters is how much you retain, how consistently you can secure work and whether the overall arrangement supports the life you want.

More control over your time

One of the attractions of contracting is the possibility of choosing when to work and when to take a break between projects.

Want to take a longer holiday? Spend time on a personal project? Have a few weeks away from work before starting your next assignment?

Depending on your contracts, finances and pipeline of work, you may have more flexibility to make those choices.

Of course, flexibility isn’t automatic. Clients have deadlines, projects have commitments and you still need to deliver what you’ve agreed to do.

But there can be a meaningful difference between requesting permission to take time off and planning your own time around your commitments.

More influence over your work

Contractors are often brought into organisations because they have expertise that is needed quickly.

You might be there to lead a change initiative, deliver a project, solve a particular problem or help a team navigate a period of uncertainty.

That can mean having a clear purpose, a defined set of outcomes and the opportunity to influence decisions.

You are being engaged to bring your experience, judgement and capability to a problem that needs solving.

For those of us who enjoy making things happen, that can be a very appealing way to work.

The freedom to shape your career

Contracting can give you exposure to different organisations, industries, teams and challenges.

You can build your experience, develop new skills and become known for the work you do best.

Over time, you may also decide to diversify, combining client work with coaching, speaking, writing or other business activities.

The possibilities depend on your skills, market and circumstances, but you’re not necessarily limited to following a single organisational career path.

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4. Contracting isn’t just doing your old job somewhere else

Here’s something worth understanding before you make the move.

Being good at your profession is essential, but working independently also requires a different set of skills.

You need to be comfortable with ambiguity, build relationships quickly and demonstrate value without relying on the structured induction and support you might receive as a permanent employee.

Clients often expect contractors to hit the ground running. They may not have the time or resources to help you navigate every internal process.

You’ll need to ask the right questions, understand the problem you’re there to solve and work out how to make an impact.

And then there’s the business side.

You’re not just doing the work. You’re also managing client relationships, keeping on top of finances, handling administration, planning your pipeline and thinking about what comes next.

In other words, you become responsible for the things that an employer might previously have managed on your behalf.

That can be empowering, but it can also be a lot.

The trick is to recognise that you’re building a business, not simply changing the way you get paid.

That means creating systems, understanding your responsibilities and making time for the work that keeps the business healthy, even when you’re busy delivering for a client.

It also means setting boundaries.

When you’re responsible for your own income, it can be tempting to say yes to everything. An extra meeting here, another deliverable there, a quick favour that somehow becomes a whole new piece of work.

Over time, that can lead to overwork and burnout.

Be clear about your scope, your availability and what you’ve agreed to deliver. Your time and expertise have value, and protecting them is part of running a sustainable business.

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5. IR35: the bit that can make your head hurt

We couldn’t talk about contracting without discussing IR35.

If you’re considering contracting in the UK, you’ll want to understand how your working arrangements are classified for tax purposes.

In simple terms, the off-payroll working rules, commonly associated with IR35, are designed to determine whether someone working through an intermediary, such as their own limited company, should be treated as employed for tax purposes in relation to an engagement.

You’ll often hear people talk about being inside IR35 or outside IR35.

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What does inside IR35 mean?

Where an engagement is inside IR35, the relevant rules generally require employment taxes to be accounted for on the fees associated with that engagement.

Depending on the circumstances and who is responsible for determining status, tax may be handled through a fee-payer or payroll arrangement, including an umbrella company in some cases.

The important thing to understand is that an inside IR35 engagement can have a very different financial outcome from an outside IR35 engagement, even if the advertised day rate looks similar.

You need to understand how you’ll be paid, what deductions apply and what your take-home pay is likely to be before agreeing to the rate.

What does outside IR35 mean?

An outside IR35 engagement is one where the relevant off-payroll working rules determine that the engagement falls outside the rules.

If you’re operating through a limited company, you may receive payment into the company and manage its finances, expenses, remuneration and tax obligations accordingly.

However, outside IR35 doesn’t mean tax-free, and it doesn’t remove your responsibilities as a business owner.

Your company may have corporation tax, reporting obligations and other costs to consider, while the most appropriate way to pay yourself will depend on your circumstances.

Why does your day rate matter?

Your day rate needs to reflect the financial reality of the arrangement.

If you’re comparing an inside IR35 contract with an outside IR35 contract, you shouldn’t assume that the same rate will leave you with the same amount of money.

You’ll also need to factor in any differences in benefits, expenses, pension provision, paid leave and other costs.

Before accepting an engagement, speak to an accountant who understands contracting and can help you work through the numbers.

IR35 status is determined by the actual working arrangements and the applicable rules, not simply by what a contract calls you. If you’re unsure, get advice specific to your situation.

It’s much better to understand the financial implications before you sign than to discover you’ve misunderstood them after you’ve started.

6. Getting your business foundations right

You don’t need to become an expert in every aspect of running a business overnight. But you do need to put the right foundations in place.

Depending on how you intend to operate, this could include deciding whether to work through a limited company, use an umbrella company or operate as a sole trader where appropriate.

Each option has different implications for tax, administration, responsibilities and the way you’re paid.

You should also consider:

Accountancy support. Find an accountant who understands contractors, your sector and the arrangements you’re considering.
Insurance. Check which policies you need for your work and whether your client or agency has specific requirements.
Financial planning. Understand your expected income, business costs, tax obligations and how you’ll manage gaps between contracts.
Contracts and payment terms. Know what you’re agreeing to, when you’ll be paid and what happens if the scope or circumstances change.
Business administration. Put systems in place for invoicing, record-keeping, expenses and keeping track of your finances.

These might not be the most exciting parts of contracting, but they can make the difference between feeling in control and constantly worrying about what you’ve missed.

And please don’t choose an accountant based on price alone. The right professional can help you understand your options, avoid costly mistakes and make informed decisions about how to run your business.

If you’re looking for recommendations, connecting with other contractors can be a useful starting point.

7. You don’t have to figure it all out on your own

One of the messages we wanted to get across during the event was the value of community.

Contracting can sometimes feel isolating, particularly when you’re used to working in a team or having colleagues around you every day.

You might have questions about rates, clients, contracts, tax or how to handle a difficult situation. You might simply want to speak to someone who understands what it’s like to work independently.

Having a network of people who understand your world can make a real difference.

It’s an opportunity to share experiences, learn from others, discover new opportunities and get support when things don’t go to plan.

This is also why Women Who Contract has grown beyond its original focus on women in IT contracting. Women work independently across so many industries, and many of the questions and challenges we face are shared.

Whether you’re already contracting, thinking about making the move or simply curious about what it could offer, there’s value in having somewhere to ask questions without feeling you should already know all the answers.

Through our free newsletter, WhatsApp community and events, we’re building a space for women to learn from one another and develop the confidence and knowledge to make contracting work for them.

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Because you don’t need to have everything figured out before you start exploring your options.

8. So, is contracting right for you?

There isn’t a single answer.

Contracting can offer greater earning potential, flexibility, variety and control over your career. It can also involve uncertainty, financial responsibility and the need to manage a business alongside delivering excellent work.

It’s not a guaranteed route to more money or a better work-life balance. And it’s certainly not the right choice for everyone at every stage of their life.

But it is an option worth understanding.

If you’re considering contracting, start by asking yourself a few questions.

What do you want more of in your working life? What are you no longer willing to accept? Which skills and experiences could you offer to organisations that need your expertise?

Then look at the practicalities. Research the market, understand the rates, work through the finances and speak to people who are already doing it.

You don’t have to make a decision today. You just need to give yourself the opportunity to explore what’s possible.

Sometimes, the biggest step isn’t leaving your permanent job. It’s realising that you have choices you hadn’t previously considered.

And perhaps that’s where the glass ceiling conversation really begins.

Watch the replay

If you missed The Glass Ceiling Called: Have You Considered Contracting?, or you’d like to revisit the conversation, you can watch the recording here:

Watch the event replay on YouTube

And if you’d like to keep learning, join the Women Who Contract community for practical advice, insights and support to help you start, grow and thrive in contracting.

Join Women Who Contract on Substack

Here’s to exploring your options, knowing your worth and finding a way of working

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