Contractor

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Someone providing a service to a client, usually but not always a company. They are either self-employed or an employee/worker working under an umbrella company.
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How’s it different to being an employee or worker?

• No need to sign an employment contract
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• You can choose your clients, you can accept/decline work
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• You can charge fees at any level
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• You don’t get any employee benefits
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Unless you’re hired by an umbrella company that pays you through PAYE, you need to pay your own taxes.
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You should also pay tax via PAYE if you own a limited company or you are a company director - you pay yourself through salary/dividends.
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However, if you pay yourself through dividends, you’ll be eligible for dividend tax and you will be required to file a Self Assessment.

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