Is a contractor self employed?

In the UK, whether a contractor is self employed depends on their working arrangements - contractors can operate as sole traders (self-employed), through limited companies, or via umbrella companies, with each structure having different tax obligations, IR35 implications, and reporting requirements to HMRC.

Last updated
August 4, 2025
Is a contractor self employed?

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.

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.