What is a business contractor?
A contractor provides services to other businesses, without actually becoming their employee. Contractors usually operate as self-employed, either as a sole trader, or through their own limited company, though you can choose whichever legal structure suits your business best.
Do contractors report their earnings to HMRC?
You’ll need to let HMRC know about your contracting business so that you can report and pay tax correctly on the money that you earn. As a contractor you might also have other obligations depending on your circumstances. For instance, registering a limited company with Companies House, or submitting CIS returns if you use subcontractors.
Read our contracting guide to get started as a contractor, or learn more about our accounting services for contractors.