Contractors

Is a contractor an employee?

Last updated
March 12, 2025

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Is a contractor an employee?

Contractors can be self-employed, a worker or an employee. Those who are employed through an umbrella company or an agency could be considered a worker or an employee.

If a contractor is a sole trader or runs a limited company, he or she will then be considered a self-employed person. With IR35 considerations, contractors may need to consider whether they're operate within an Umbrella company or as their own limited company.

To learn more you can use one of our calculators to find the differences in take home pay.

Contractors can be self-employed, a worker or an employee. Those who are employed through an umbrella company or an agency could be considered a worker or an employee.

If a contractor is a sole trader or runs a limited company, he or she will then be considered a self-employed person.

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How to Start Contracting Guide

We explain which contractor segment you might fall into. We walk through IR35 and the implications for you and how you may fall inside or outside of IR35.

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