Pre-contracting quick-start checklist
Setup Checklist
Pre-contracting setup checklist. Everything you need to do before starting your first contract.
Financial Readiness (Weeks -4 to -2)
- ☐ Save 3–6 months of personal expenses (war chest)
- ☐ Research realistic day rates for your role
- ☐ Understand tax implications (PSC, umbrella, PAYE)
- ☐ Budget for accountancy costs (£800–£2,500/year)
- ☐ Budget for insurance (£200–£500/year)
- ☐ Plan for bench time (1–4 weeks between contracts)
Market & Network Preparation (Weeks -4 to -1)
- ☐ Register with 5–10 recruiters in your specialism
- ☐ Update LinkedIn (open to contracting)
- ☐ Tell trusted colleagues you're contracting
- ☐ Get 2–3 referrals lined up if possible
- ☐ Research 3–5 agencies and their fee structures
- ☐ Create portfolio or updated CV
Legal & Admin Setup (Weeks 0 to +2)
- ☐ Choose structure: PSC, umbrella, or PAYE
- ☐ Register company at Companies House (if PSC)
- ☐ Open business bank account
- ☐ Hire an accountant
- ☐ Register with HMRC (CTR, SA)
- ☐ Set up accounting software (Xero, FreeAgent, etc.)
- ☐ Get professional indemnity insurance
- ☐ Get income protection insurance (optional but recommended)
First Contract Checklist (Week 0)
- ☐ Clarify day rate or salary
- ☐ Get IR35 determination in writing
- ☐ Understand notice period (yours and theirs)
- ☐ Agree payment terms (net 30? Weekly?)
- ☐ Confirm working hours and location
- ☐ Get contract reviewed (optional: by lawyer)
- ☐ Confirm expenses policy (equipment, travel)
- ☐ Understand project scope and timeline
Don't skip the prep work
Time spent preparing now saves stress and money later.
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