UK Contract Types & IR35
15 guides on UK employment contract types — zero hours, fixed term, permanent, freelance, agency, apprentice, internship, probation, casual; plus IR35 rules, inside vs outside IR35, umbrella vs ltd vs PAYE comparison, contractor day rates, and self-employed vs employee status. Each guide covers rights, employer obligations, tax implications, common use cases, and recruiter pro tips. April 2024 + 2026 statutory updates.
How do UK zero hours contracts work in 2026?
A zero hours contract is a UK employment arrangement where the employer doesn't guarantee any minimum hours, and the worker isn't obliged to accept hours offere…
How do UK fixed term contracts work?
A fixed term contract has a specific end date or ends on completion of a specific task/event. Fixed-term employees have the SAME rights as permanent employees (…
What are my rights on a UK permanent contract?
A UK permanent contract has no end date and continues until terminated by employer or employee following the contractual notice period. Permanent employees have…
What is the difference between self-employed, worker, and employee in the UK?
UK employment status has three categories: (1) Employee — full employment rights and PAYE; (2) Worker — limited rights including NMW, holiday pay, rest breaks, …
How do UK IR35 rules work in 2026?
IR35 (off-payroll working rules) targets disguised employment where a worker provides services through their own limited company but operates like an employee o…
What is the difference between inside and outside IR35?
Inside IR35 means HMRC treats your contract as disguised employment — payments are taxed via PAYE-equivalent deductions before reaching your limited company. Ou…
How do UK umbrella companies work in 2026?
An umbrella company employs you as their PAYE employee while you carry out work for an end client (often via an agency). The umbrella receives your gross day ra…
Should I use PAYE, umbrella, or my own ltd company in the UK?
PAYE: simplest, lowest take-home (~63-68% net of gross), full employee rights, no admin. Umbrella: similar net (~60-67%), used for inside-IR35 contracts, employ…
What are typical UK contractor day rates in 2026?
Typical UK contractor day rates 2026: junior tech £350-£500/day; mid-level tech £500-£700; senior tech £700-£1,200; specialist (cybersecurity, AI/ML, cloud arch…
What rights do UK freelancers have?
UK freelancers (genuinely self-employed) have NO employment rights — no holiday pay, no sick pay, no minimum wage, no unfair dismissal, no redundancy. They rely…
What rights do UK agency workers have?
UK agency workers (engaged through an employment agency to work for an end-user client) have specific protections under the Agency Workers Regulations 2010 (AWR…
How do UK apprentice contracts work?
UK apprentices have an Apprenticeship Agreement (different from a Contract of Apprenticeship in older law). They're employees with full employment rights from d…
Do UK interns have to be paid?
Most UK interns are entitled to National Minimum Wage. The legal status depends on whether the intern is doing 'work' under National Minimum Wage Act 1998 — if …
What are my rights during a UK probationary period?
UK probationary periods are NOT a legal status — they're a contractual mechanism. During probation you have ALL the same statutory employment rights as a confir…
What rights do UK casual workers have?
UK casual workers (work irregular hours with no obligation on either side) typically have 'worker' status, giving them: National Minimum Wage, statutory holiday…