Every term of freelancing.

Pricing model where a freelancer charges a fixed fee per day, regardless of hours. Standard for consultants, IT contractors, and project-based professionals.

Formal document defining the scope, deliverables, timeline, and acceptance criteria for a specific freelance engagement. Usually attached to a master service agreement.

UK tax legislation that determines whether a contractor working through their own limited company is genuinely self-employed or should be taxed as an employee.

UK government tax authority responsible for collecting income tax, corporation tax, VAT, and National Insurance, and enforcing tax compliance.

UK system for declaring income and calculating tax owed when you're not taxed at source through PAYE. Required for sole traders, limited company directors, and most freelancers.

UK social security tax that funds the State Pension and certain benefits. Self-employed pay Class 2 and Class 4; limited company directors pay via salary.

UK consumption tax of 20% (standard rate) charged on most goods and services. Mandatory registration above £90,000 turnover; optional below that.

A freelancer is an independent professional who provides services to companies or individuals without being employed full-time. Freelancers typically work on short-term or recurring projects in fields such as marketing, web development, design, writing, consulting, and more. They manage their own clients, pricing, schedule, and business structure. Freelancing offers greater flexibility and freedom, but also requires handling client acquisition, invoicing, taxes, and overall business management independently.

UK private company structure popular among contractors, offering limited liability and tax-efficient profit extraction via salary and dividends.

Simplest UK self-employed business structure. The individual and the business are legally the same entity — unlimited personal liability but minimal admin.

Third-party employer used by UK contractors who don't want to run their own limited company. The umbrella employs the contractor, deducts PAYE/NI, and invoices the end-client.