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What Is a Contractor?

Updated: May 16, 2022


Contractors are professionals who provide skills or services to companies for a set period. They may be contracted for a set number of hours, a certain time frame, or the duration of a project.

Contractors can be self-employed, and work independently as sole traders, or they can run their own limited company. Independent contractors work for themselves and source their own clients. However, an umbrella company or agency can also employ contractors. Those who work for a company may not have to find their own clients, as they can work with clients sourced by the company. The company will also pay the contractor and their taxes.

Whether employed or independent, contractors can work on one or multiple contracts at a time. And with transferrable skills, contractors can often work with a variety of businesses.




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