Independent contractor

An independent contractor is usually a self-employed person who provides services to a client without joining that client’s payroll as an employee.

In the UK, the label alone does not settle the issue. Employment-law status and tax status are related but separate questions. A person may invoice through their own company or act as a sole trader, but you still need to ask whether the reality of the relationship looks more like self-employment, worker status, or employment. IR35 deals with off-payroll tax treatment through intermediaries; it is not the same test as employment-law worker status.

That distinction matters most where the contractor is taking shifts from one platform or one engager and is tightly controlled on when, where, and how the work is done. The contract wording helps, but the real relationship matters more.

Different elsewhere: in Canada the common practical distinction is often employee versus contractor under CRA and provincial rules. In Australia, an ABN and a contractor agreement do not prevent a sham-contracting problem if the relationship is really employment.