What is a contractor?

If you provide services to a company or client, then you are a contractor. This can mean that whilst they have provided the opportunity to work, you may not be directly engaged by them. It is imperative when you are a self-employed contractor that you take the responsibility of your own tax and National Insurance contributions.

How it Works

Your responsibilities as a contractor

Knowing what you should do in terms of obligations to HMRC can be overwhelming when you first become a contractor. IR35 rules came into force in April 2021 and what this means is that HMRC will determine if a contractor falls inside or outside IR 35. If you are being treated as though you were a full-time employee with the same benefits, you will be deemed as falling inside IR 35 rules.

Still unsure?

You are classed as self-employed or a contractor if any of the following applies:

  • You submit bids or give quotes to get work
  • You submit invoices for the work they’ve done
  • You are responsible for paying your own National Insurance and tax
  • You tend to work under your own remit without supervision
  • You do not receive holiday or sick pay when not working

We take care of all your obligations with a small fee that is classed as expenses at the end of the tax year.