Freelance Contractors
Freelance contractors are people who are either self employed, or who are not committed to the same long term employer. It is common for Freelance contractors to be represented by an agency who resells their labour. Others choose to be represented by themselves and are totally independent.
The majority of Freelance Contractors, particularly those working in IT, choose to set up as a Limited Company. This brings them advantages over working as a sole trader. A limited company’s finances are separate from those of the director, therefore limiting financial liabilities. Working as a limited company is also the most tax efficient method of contracting.
There are many reasons why a company would choose to employ a freelance contractor over taking on an employee. One of the main reasons is flexibility. A firm will be able to bring in a certain skill or expertise for a set amount of time, or for a particular project.
To be eligible for our iNdemnity360 product, your turnover must be less than £500,000 and you must employ 5 people or less. If you exceed this, click here to read about General Firms.