Glossary

Sole Traders

This term is used to define self-employed people who run their business for themselves and take full responsibility for its success or failure. Unlike working through a personal service company (PSC), there is no separation in law between the worker, and the business. This means that if anyone decided to start legal proceedings regarding the work done, this case would be brought against the individual, in contrast to a worker who uses a PSC, where it would normally be the company facing the court case, instead of the worker personally.

A self-employed person has no statutory employment rights and will not ordinarily pay tax to HMRC until the end of the tax year, although some types of National Insurance may be payable during the year.

Other common terms

Umbrella Company

Umbrella companies employ contractors under the terms of a permanent contract of employment, meaning that the individual receives all 84 statutory rights and employment benefits

FCSA Charter

The FCSA Charter sets out the minimum ethical standards and levels of conduct expected from the Freelancer & Contractor Services Association (FCSA) Accredited Members. All

Offshore Structures

This term refers to any structure including a company that is based offshore (i.e. not in the UK) that offers services to UK recruitment agencies