Some people use the terms ‘contractor’ and ‘freelancer’ interchangeably but, although they have certain things in common (such as being self-employed), there are some important differences.
For one thing, contractors tend to dedicate themselves to a single client for either a set period of time or for the lifetime of a particular project whereas freelancers generally work for more than one client on a number of different projects at once.
Also, contractors routinely work on a client’s premises while freelancers ordinarily have their own workspace or work from home.
As a contractor, you can kick-start your own business in one of four ways:
- Working as a sole trader.
- Setting-up a limited company.
- Joining an umbrella company.
- Being paid through a recruitment agency.
Deciding which option, you take involves weighing up the risks and rewards of each. Our team is on hand to help you make the right call. Contact us to discuss which form your business should take.
You must consider the following;
- IR35 legislation
- VAT