Contractors who carry out work for you have a different legal status from employees. They are independent workers who provide their services on a business-to-business basis.

This factsheet provides information about how to hire a contractor. It outlines the tax implications of hiring a contractor rather than an employee and explains the IR35 rules used by HM Customs and Revenue (HMRC) to determine a worker’s employment status for tax purposes. It also explains the insurance implications and the health and safety requirements that apply when contractors carry out work for a business.