It is essential to properly plan a transition from employee to freelancer, according to one expert.

Mel Dixon, of freelance advisor, has said that it is essential for potential umbrella contractors to plan their career in advance if they want to minimise potential risks.

She advises those thinking of making the move to develop a business plan including knowing the specific details of what sort of service you are going to sell, your initial aims for the business and how you are going to achieve them.

It is also necessary, she says, to save a good amount of money before you quit your full-time job in case of a period of slow work, insurance or if you become ill.

In addition, the expert advises potential contractors to network at industry events in order to better understand the market and to win over new clients.

If possible, she says, line up work as it is inadvisable to leave a full-time job without even a few clients prepared.