The terms “freelancer” and “contractor” is used for self-employed individuals who work for themselves and usually charge by the hour (or by the day) rather than work for a company and get a monthly salary. Even though both the terms are used interchangeably on many occasions there is a slight difference on the terms. Here’s a quick summary to help you come to grips with these two almost similar but slightly different words.
1. Freelancer:
- Self-employed and pays through a self-assessment process
- Could be a sole trader or a limited company
- Usually works for several clients at once or on a pay per hour/day basis
- Often works from his/her own premises or from home
- Most common in marketing, media and creative domains