A self-employed individual engaged to provide services under a contract, not employment.
An independent contractor (also called a freelancer or consultant) is a self-employed individual who provides services to an organization under a services contract, rather than an employment contract. Unlike employees, contractors are typically responsible for their own tax, National Insurance (or equivalent), and benefits. Misclassifying employees as contractors (known as "bogus self-employment" in the UK, or addressed by IR35 rules) can result in significant tax liabilities and penalties. HR software helps organizations track contractor engagements and compliance.
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