What is a freelancer?

Last updated: 14 Nov 2023

Although the term freelancer is not defined in employment law, when people speak of freelancers, they usually mean:

  • People who work a series of short fixed-term contracts where they are on PAYE terms
  • People who work a series of short fixed-term contracts who are deemed to be ‘self-employed’ for tax purposes
  • People who work through their own limited companies, supplying labour, services, equipment, and sometimes the services of other people
  • People who are hired to provide a particular one-off service

When the term is applied to someone on a short fixed term PAYE contract, they actually has many of the employment rights of someone in full-time employment. For example, freelancers in this scenario are entitled to holiday pay and Statutory Sick Pay.

This is a complicated issue and you can check your employment status for tax purposes on the gov.uk website.

You can learn about how your status affects your employment rights here.