Contracting in the UK

Legal status
For the purposes of tax and benefits, UK law only recognises companies. For a freelancer in the UK there are three options:


 * 1) create your own limited company
 * 2) work through an umbrella company
 * 3) work PAYE through an agency

Tax
UK law has no written definition of the terms employment and self-employment. However, from the case law we have, you are:


 * self-employed if you are in business on your own account and bear the responsibility for the success or failure of that business
 * employed if you personally work under the control of someone and do not run the risks of having a business yourself