After several years as a permanent automation engineer, many professionals consider going freelance. The financial rewards can be significant, but so are the responsibilities. Here is a practical guide to making the transition successfully.
Is Freelancing Right for You?
Before making the leap, consider whether you have:
- At least five years of solid experience across multiple projects and industries
- A professional network that can provide initial leads and referrals
- Financial reserves to cover three to six months of expenses
- Self-discipline to manage your own schedule, finances, and business development
- A specialisation that is in high demand (Siemens, Rockwell, SCADA, safety systems)
Setting Up Your Business
Most freelance automation consultants in the UK operate through a limited company. Key steps include:
- Register a limited company with Companies House (costs around GBP 12)
- Open a business bank account
- Register for VAT if you expect turnover to exceed the threshold
- Arrange professional indemnity and public liability insurance
- Hire an accountant who understands contractor finances and IR35
Understanding IR35
IR35 legislation determines whether a contractor is genuinely self-employed or effectively an employee. Since the April 2021 reforms, medium and large companies determine your IR35 status. If caught inside IR35, you pay similar taxes to a permanent employee.
To operate outside IR35, ensure:
- You have a right of substitution (you can send someone else in your place)
- There is no mutuality of obligation (no guarantee of ongoing work)
- You control how and when you deliver the work
Many automation consultants work on project-based engagements that naturally fall outside IR35, but always get professional advice.
Setting Your Day Rate
Freelance automation engineers in the UK typically charge:
| Specialisation | Day Rate (GBP) | |---|---| | General PLC programming | 300 - 400 | | Siemens / Rockwell specialist | 350 - 500 | | SCADA and integration | 400 - 550 | | Safety systems (SIL) | 450 - 600 | | Project management + technical | 500 - 650 |
Your rate depends on your experience, specialisation, location, and the urgency of the client's needs.
Finding Clients
Build your pipeline through:
- Specialist recruitment agencies — Firms like Wiser Engineering, Automation Talent, and Premier Group focus on automation contractors.
- LinkedIn networking — Regularly post about your projects and expertise.
- Industry events — PPMA Show, Smart Factory Expo, and regional engineering meetups.
- Direct client relationships — Previous employers and colleagues are often your best source of work.
- System integrator partnerships — Many integrators use freelancers to handle overflow work.
Managing Your Business
As a freelancer, you must handle:
- Invoicing and chasing payments — Set clear payment terms (typically 30 days) and follow up promptly
- Expenses tracking — Tools, travel, accommodation, insurance, and training are tax-deductible
- Pension planning — You need to arrange your own pension contributions
- CPD and training — Invest in keeping your skills current. CPD-accredited courses are a business expense and keep you competitive
- Contract negotiation — Always review contracts carefully and consider legal advice for large engagements
The Lifestyle
Freelancing offers flexibility and higher earnings, but also requires accepting periods without work, managing your own administration, and spending time away from home during commissioning projects. The most successful freelancers build strong reputations through quality work and reliable delivery, ensuring a steady stream of referrals and repeat business.