
In this guide:
- Is cybersecurity consulting right for you?
- What does a cybersecurity consultant do?
- How to become a cybersecurity consultant
- What skills do you need to maintain?
- What insurance do cybersecurity consultants need?
The UK cybersecurity industry is huge. In 2026, it contributed 14.7 billion to the UK economy. That’s 11% more than in 2025. And it’s only projected to keep growing.
Businesses both large and small are investing more and more in their cybersecurity, in response to the threat of traditional attacks, like phishing, and the future potential of AI-powered attacks.
In this guide, we’ll go through the pros and cons of becoming a cybersecurity consultant. As well as what you’ll need to start your solo journey – from business basics to the realities of working for yourself.
Is cybersecurity consulting right for you?
Before taking the leap into cybersecurity consultancy, it’s worth considering whether it suits your skills, experience, and working style.
When a company hires a consultant, they’re often paying for the expertise and experience they’re lacking themselves.
They might hire you to assess a business’ incident response processes and provide recommendations. Or contract you to conduct penetration tests for a set period of time and provide a detailed report.
Junior cybersecurity professionals are less likely to fill these gaps, so you might struggle to find work as a consultant if you’re in this position.
Technical skills are only part of the equation, though. Successful cybersecurity consultants are strong communicators who can explain complex risks clearly, build relationships with stakeholders, and adapt quickly to different systems and ways of working.
Running your own consultancy comes with challenges, of course. Long hours, variable month-to-month income, having to find your own work, and patience for a lot of admin...
Clients will require you to be incredibly self-sufficient. Once you’ve agreed a contract with them, it’s on you to meet your deadlines and complete the work to the level required.
But the rewards can be significant. You’ll have complete control over what clients you work for, what kind of projects you take on, and how much work you do.
Variety is another key pro. One day you might be working for a finance firm on their cloud security configuration, the next day you’re helping a charity build their security architecture from the ground up.
Lastly, there’s the earning potential. Depending on how experienced and specialised you are, you can out-earn a permanent, in-house position.
What does a cybersecurity consultant do?
Obviously, things will change depending on the project or client you’re working on. And whether you’re an advisory or technical consultant.
But here are some typical daily activities you’ll probably do regardless of your focus:
- Attend project check-in calls/meetings – helps you stay on top of project progress and review any recent incidents.
- Hands-on technical work or assessments – if you’re a technical consultant, you could be testing systems for security flaws. If you’re an advisory consultant, you might review strategic or planning documentation for cybersecurity risks.
- Documenting and reporting your work – everything you do has to be documented or reported on so the client can keep benefiting from your work once your contract ends. And so they’re aware of what you’re doing day-to-day.
- Client workshops or presentations – you might need to update the leadership team on your findings or present to the permanent cybersecurity team on your recommended fixes.
- Collaboration – working with the in-house staff to develop and implement changes.
- Personal development – cybersecurity is evolving constantly. It’s important to set aside time every day to keep on top of new threats, tools, and techniques.
How to become a cybersecurity consultant
Now that you’re aware of what you’ll be doing in your new role, it’s time to set up your cybersecurity consultancy.
We’ve put together a general step-by-step guide. We can’t include everything, but it should give you a good starting point to help you get to day one.
1. Decide on your business structure
Before you start looking for work, you need to get set up. At a fundamental level, that means choosing how you’ll work. There are several ways of doing this, each with their own pros and cons.
| Structure | What it means | Pros | Cons | Best for |
Limited company | You run your own consultancy through a company. | • Professional image • More tax-efficient outside IR35 • Full control over clients, rates and workload | • More admin and accounting costs • Need to understand IR35 | Experienced consultants winning their own work and charging higher day rates. |
Umbrella company | An umbrella company employs you and handles payroll and admin. | • Quick and simple setup • Minimal admin • No company accounts to manage | • Less take-home pay • Less control over finances | Consultants taking short-term contracts or trying contracting for the first time. |
Sole trader | You operate as a self-employed individual and report income through Self Assessment. | • Easy and inexpensive to set up • Minimal paperwork • Full control of the business | • Personally liable for business debts and claims • Some larger clients prefer limited companies | Side projects, occasional consultancy work or lower-risk engagements. |
Agency contractor | A recruitment agency finds contracts and places you with clients. | • Less time spent finding work • Access to established clients • Faster route into contracting | • Agency fees can affect rates • Less control over projects | Cybersecurity professionals who want a steady flow of contract opportunities. |
Subcontractor | You deliver work on behalf of a larger cybersecurity consultancy. | • Consistent flow of work • Access to larger projects • Opportunity to learn from experienced consultants | • Less control over clients and pricing • Usually lower rates than working directly with clients | Consultants building experience, a specialism or a client network. |
Lots of options, right? A good starting point is to think about the type of work you want to do. And what you want your day-to-day to look like. As well as how much risk and admin you want to take on.
As a quick rule of thumb, though:
- For maximum earnings and control, you might want to set up your cybersecurity consultancy as a limited company (don’t forget that there are certain legal, tax, and admin obligations that come with this).
- Want the simplest option with the least admin? Finding employment through an umbrella company might be your best bet.
- Testing the waters with occasional consultancy work? Setting up as a sole trader is usually the most flexible option.
- Don’t want to spend time finding clients? Working for an agency or as a subcontractor often means starting straightaway.
Use our guide above, as well as free resources like the government’s Help To Grow guide, to decide how you’ll structure your cybersecurity consultancy.
2. Inside or outside IR35?
You’ll also notice that we’ve mentioned IR35 a lot in the table above. If you’ve never contracted before, or worked for yourself, it might be a bit confusing.
In short, IR35 is the name commonly used for the UK’s off-payroll working tax rules.
These rules help determine whether an independent contractor that’s working through an intermediary should be treated like a regular, tax-paying employee by the client they’re working for.
When you’re “inside IR35”, you pay income tax and national insurance via PAYE, like any employee. It’s most common you’ll be inside IR35 if you’re a subcontractor or agency contractor.
If you’re “outside IR35”, you’re treated as a business for tax purposes. In these cases, you can pay yourself through a mix of salary and dividends. This lets you keep more of your take-home pay. This is most often the case for limited companies and sole traders.
This is where it gets a bit tricky. Your IR35 status can and will change between contracts. Why? Because it depends on the nature of work you’re doing for each contract.
IR35 is complex. Your best bet to get your head around it is to look at the UK government’s IR35 guidance. Make sure you read it before you choose how to set up your business. It has all the rules and regs you need to be aware of and will answer any lingering questions you may have.
3. Register your business or sole trader status
Once you’ve decided what your structure will be, you’ll need to do one of a few things. Either register your business via Companies House, register for self-assessment tax returns as a sole trader, or start researching agencies and umbrella companies you can apply for.
A word of warning, if you’re interested in pursuing the agency or umbrella route: make sure you know your rights. Unfortunately, there are a lot of reports of fraudulent businesses operating in these areas. So, focus on finding reputable businesses with a lot of verifiable reviews.
4. Set up a business bank account
If you’ve decided on the limited company or sole trader route, you’ll need to set up a business bank account. Limited companies have to do this for legal reasons. For sole traders, it’s not a legal requirement, but it helps you keep your personal and business funds separate.
MoneySavingExpert have a fantastic resource on business bank accounts that can help you navigate all the options.
5. Organise your finances
Umbrella workers are paid by PAYE. Simple.
For other options, you’ll need to do a bit more admin. There are a few routes you can take, depending on your projected take-home pay. If you’re expecting to bring home a large amount each month, you could hire an accountant to help you manage your financial obligations.
You could also use a reputable bookkeeping tool, like Sage, Xero, and QuickBooks. This is a much cheaper way of staying on top of your invoicing and other finances. But it will require a lot more of your time.
If you opt to go down the sole trader route, don’t forget about your self-assessment tax return. You’ll need to complete these every year, by law. Have a read of HMRC’s sole trader guide. It explains all the tax obligations and rules you’ll need to be aware of.
Limited companies have to prepare an annual accounts report and tax return.
6. Create your portfolio, CV, and online presence
Even as a subcontractor or agency consultant, your reputation is everything. You can start building it from day one.
Build a professional CV and portfolio that demonstrates your skills and experience. Many consultants opt for an online portfolio. It’s easy to link to prospective clients and you can use it as an extra demonstration of your technical prowess.
You can either build it yourself or use a website builder like Wix or Squarespace.
For limited companies and sole traders, you’ll also need to market yourself. At least until you’re embedded enough in the industry that you get a lot of business through word-of-mouth.
You need to be actively working on your personal visibility via websites like LinkedIn and by attending in-person events and networking opportunities.
In the beginning, make sure to use any contacts you’ve built up from your pre-contracting career. Any recommendations or references can be gold dust when you’re starting out and may help you land your first few contracts.
7. Join contractor networks and job boards
Wondering where to start looking for contracts? When you’re just starting, you’re going to have to do a bit of legwork.
Traditional job-seeking websites, like Indeed and Monster, are always good to check for interesting opportunities. You might have more luck on tech-specific job boards, though. TechnoJobs and CWJobs are a couple of examples.
You should also contact cybersecurity or general IT recruitment agencies. Building relationships with specialist recruiters that cover cybersecurity is vital and can help you land jobs before they even become public.
Conferences, tech summits, and contractor forums are another great way of making contacts that can lead to jobs. Try and make the time to attend big events like CYBERUK and UKsec. They’re also a good opportunity to develop and demonstrate those ‘soft skills’ we mentioned.
What skills do you need to maintain as a cybersecurity consultant?
Once you’ve set your business up and are in the full swing of winning over clients, it’d be easy to let your training slide.
There are certain technical skills and knowledge bases most employers will expect cybersecurity consultants to have when they hire them. And there might be others you need to work on.
Here are some examples:
- Cloud security – most businesses now run their systems on the cloud. Whether through Microsoft, Amazon, or another provider.
- Identity & access management – setting up multi-factor authentication, single sign-on systems, and other ways of stopping unauthorised access to sensitive systems and data.
- Penetration testing & ethical hacking – consultants are often hired to simulate attacks and expose weaknesses in security.
- Compliance – clients will often ask you to advise on security frameworks, like ISO 27001, GDPR, and NIST CSF.
- Incident response & threat detection – helping businesses improve their ability to detect threats and quickly deal with them.
- Network security fundamentals – setting up firewalls, VPNs, DDoS mitigation, and other basic security infrastructure.
- Programming basics – being proficient in programming languages like Python, Java, and PowerShell is a must.
What insurance do cybersecurity consultants need?
We’ve arrived at one of the final bits of housekeeping you’ll need to before you hit ‘send’ on that first application: your insurance.
The only instance you may not need insurance is if you’ve opted to go down the umbrella company route. Even then, make sure you double check with them whether you need your own insurance before you embark on your first contract.
For everyone else, insurance is vital. After all, accidents happen. And at some point, you’ll make a mistake. Or at least be accused of one.
Depending on the size of your contracts, and the types of clients you’re working for, you could be facing a big bill to set things right. Especially if that mistake means you’re in breach of the contract you signed.
Whether it’s a missed deadline, a client accusing you of not meeting a project’s requirements, or your compliance recommendations failing to lead to certification.
The more you grow your consultancy, the more pronounced this risk becomes.
These are the types of insurance you’ll probably need to protect yourself:
- Professional indemnity (PI) insurance – covers you when a client accuses you of negligence, dishonesty, libel, slander, or breach of confidentiality. You might have misconfigured a firewall that led to a data breach, given bad compliance advice, or missed a critical vulnerability in a risk assessment. Whether it’s your fault or not, PI insurance covers your legal fees and any compensation you might be due.
- Public liability (PL) insurance – PL has a few great uses for a cybersecurity consultant. If you visit your client’s premises, it covers you for third-party property damage and injury, if you’re found to be at fault. Think a spilled cup of coffee on a piece of your client’s equipment, leading to hardware damage. It covers any legal fees, compensation, and repair/replacement of equipment.
- Portable equipment insurance – certain contracts might require you to use your own equipment, like your mobile phone, laptop, and storage devices. Portable equipment insurance will pay to repair or replace it if it’s damaged, lost, or stolen when you’re out and about or at a client’s premises.
- Cyber insurance – depending on a client’s security policy and the sensitivity of their data, you might be required to store/process their data on your own systems. If you experience a data breach and this data is lost or stolen, you could face a big bill from the client and a hit to your reputation. Cyber insurance is there to help you recover. It handles your legal defence, pays your legal fees and any compensation you might owe, and provides PR experts to manage your reputation.
Embarking on a new adventure
Starting your cybersecurity consulting career can be just as stressful as it is exciting. Especially if you’ve never worked for yourself before.
Our advice is simple: take it step-by-step and be patient. Do everything you can to prepare before you leave your permanent position. If possible, line up a contract or two in advance to help you hit the ground running. It’ll take a lot of that initial financial stress out of the equation.
Looking for some help or advice with your cybersecurity consultants’ insurance? If you’re ready to talk to a broker or just have any questions, give us a call on 0345 222 5391.
Images ©PolicyBee 2025
business advicebusiness guidescontractingcontractorscontractors insuranceIT and technologyIT contractorsrunning a businessstarting a business