Guide
The practical guide to going independent as a recruitment consultant.
Everything you need to know before you make the move: what going independent actually involves, what the earnings look like, and why most consultants who do it wish they’d done it sooner.
Who it works for
Going independent isn’t for everyone. Here’s who it works well for.
The consultants who make a successful move to independence share a few consistent characteristics. They’ve built something valuable: a client base, a track record, and a clear sense of how they want to work. They want the upside that comes from owning their own work.
It tends to work well if you’re
- Billing consistently for at least 2–3 years
- Building client relationships independently (not just assigned accounts)
- Confident sourcing without heavy brand or database support
- Ready to operate self-employed and manage your own tax affairs
- Wanting full control over clients, candidates, and how you structure your time
It tends not to work if you’re
- New to recruitment and need structured training or management
- Relying heavily on your agency's brand to open doors
- Wanting a guaranteed base salary, employment rights, or a managed environment
- Not yet building your own client relationships independently
The practical reality
Five things you need to set up. One of them is harder than the others.
In practice, there are five things you need to have in place. Four of them are straightforward. One (building technology and back-office infrastructure) is what most consultants find genuinely difficult when going fully solo.
Register as self-employed with HMRC
Takes about 15 minutes online. Once registered, you’ll file a Self Assessment tax return each year. That’s the extent of the administrative setup on the HMRC side.
A business bank account
Plenty of straightforward options (Starling, Monzo Business, Tide) that take a day or two to open with little or no monthly fee. Not a complicated step.
Professional insurance
Professional indemnity insurance for a recruitment consultant is typically a straightforward annual policy. Modest cost relative to your billing. We can point you to suppliers.
Client agreements and terms of business
You need terms of business that work for perm and/or contract placements. Under Unknown Potential, branded terms of business are provided. You’re operating under an established commercial framework, not starting from a blank document.
Technology, compliance, and finance infrastructure
This is the hard one. Going fully solo means choosing a CRM (and paying per seat), setting up GDPR-compliant processes, finding a payroll provider, establishing an invoicing workflow, and managing credit control. Most consultants who try to do this underestimate the time and the ongoing cost. This is the problem Unknown Potential solves. See the full platform breakdown, including what the CRM includes.
What you actually earn
The financial case for going independent.
The earnings gap between an employed recruitment consultant and an independent one is significant.
| Annual billing | At agency (25% split) | Independent (85% of GP) | Difference |
|---|---|---|---|
| £80,000 | ~£20,000 | £68,000 | +£48,000 |
| £150,000 | ~£37,500 | £127,500 | +£90,000 |
| £250,000 | ~£62,500 | £212,500 | +£150,000 |
| £400,000 | ~£100,000 | £340,000 | +£240,000 |
Agency figures assume a 25% commission split after threshold. Independent figures based on current Unknown Potential platform terms. All figures are gross before personal tax and National Insurance.
Day-to-day operations
What you manage. What the platform handles.
You manage
- —Your client relationships and business development
- —Candidate sourcing, assessment, and representation
- —Your personal tax affairs (Self Assessment, payments to HMRC)
- —LinkedIn licence and any job board subscriptions
- —Professional insurance
- —Personal costs of working (home office, travel, equipment)
Platform handles
- ✓CRM: candidate and client database, fully built
- ✓Compliance: GDPR workflows, consent management, audit trails
- ✓Invoicing: generating, sending, and tracking invoices
- ✓Credit control: chasing overdue invoices
- ✓Contractor payroll: paying contractors correctly and on time
- ✓Finance records: structured bookkeeping
- ✓Brand: templates, terms of business, documentation
- ✓Technology: platform maintenance, integrations, updates
The timeline
From decision to billing: a realistic timeline.
The platform setup itself is fast. The rate-limiting factor is almost always your notice period, which is why it’s worth starting the conversation now, even if you can’t move for three months.
| Stage | Typical duration |
|---|---|
| Initial conversation | 1 hour |
| Reviewing and agreeing terms | 3 to 7 days |
| Working your notice period | Depends on your contract, typically 4 to 12 weeks |
| Platform setup | 3 to 5 working days |
| First placement | As soon as you're ready |
Questions we hear often
What people ask before they make the move.
Can I bring my existing clients?
Yes. Your client relationships are yours. The one area to check carefully is your current employment contract: many agency contracts include restrictive covenants covering clients you’ve worked with during your employment. We’d strongly recommend having your contract reviewed by a solicitor before you leave. We can’t give legal advice on your specific situation, but we’re happy to point you to people who can.
What about restrictive covenants?
Restrictive covenants restrict what you can do after leaving: which clients you can contact, which candidates you can approach, which sectors you can work in for a period of time. How enforceable they are depends on how well-drafted they are, what they actually say, and the specific circumstances. Courts generally enforce reasonable restrictions but not unreasonable ones. Get a solicitor to review your contract. It’s money well spent.
What about my personal tax? Will I pay more?
Not necessarily. You’ll pay Income Tax at the same rates as you do now, but with more control over the timing of your payments and access to a wider range of deductible expenses. A self-employed consultant can legitimately deduct costs including accountancy fees, professional subscriptions, home office costs, and travel for business purposes. Many consultants find their effective tax position is similar or better than PAYE, particularly with a good accountant managing their affairs. See our self-employed tax guide for the full picture.
How does IR35 affect me?
IR35 is tax legislation designed to prevent tax avoidance by people who work as self-employed contractors but whose working arrangements are effectively those of an employee. As an independent consultant sourcing and placing candidates across multiple clients, the IR35 risk is generally low. That said, if you run a contract desk and are in any doubt, it’s worth speaking to an accountant who specialises in contractor tax. We can make introductions. Read our guide on IR35 and independent recruitment consultants.
What insurance do I need?
Professional indemnity insurance is the main requirement. This covers you if a client claims a placement caused them financial loss. The cost for a recruitment consultant is typically £200 to £500 a year for a standard policy, depending on your billing level and the nature of your placements. We have preferred suppliers and can help with introductions.
Can I take contractors with me from my current agency?
This depends on your employment contract, specifically the restrictions on soliciting contractors you’ve managed. Even where restrictions apply, they generally cover a fixed period (often 6 to 12 months) and specific contractors rather than your market in general. A solicitor can advise on what your specific contract allows.
Do I need to tell my current employer?
No. You’re under no obligation to disclose what you’re considering before you resign. Many consultants go through the entire process of conversations with Unknown Potential, reviewing the terms, and deciding to proceed before their current employer knows anything. That’s entirely normal and appropriate.
What if it doesn’t work out?
The agreement includes clear terms about how you leave. There’s no long-term lock-in. If you make the move and it doesn’t work for any reason, you can exit under the notice provisions in the agreement. Outstanding invoices and contractor arrangements are handled according to the terms. The goal is to make the platform work well for you, not to trap you in it.
How do I manage my own business development without agency support?
The honest answer: most independent consultants bill better than they did at an agency, not worse, because they can focus entirely on their own sector and clients without the political overhead of a large organisation. The platform includes AI-powered business development tools, but the fundamentals are the same: you know your market, you have relationships, and you build on both.
What does the working day actually look like?
Completely up to you. Most consultants work from home, at least most of the time. You set your own hours, your own pace, and your own priorities. There are no mandatory team meetings, no activity targets set by a manager, and no performance reviews. The structure is the structure you impose on yourself.
Ready to take the first step?
The easiest way to understand whether this is right for you is a conversation.
No formal application and no commitment involved. We’ll talk through your background, your current situation, your sector, and what the move would look like for you financially.