UK Business Glossary for Freelancers
Short definitions for terms that show up in Jackals articles. Not legal definitions — plain English starting points. Confirm formal meaning on GOV.UK/HMRC when decisions matter.
A–F
Allowable expenses — Costs you may be able to deduct against profits if rules allow. Ask an accountant when unsure.
Billable — Time or outcomes you can invoice.
Confirmation Statement — Companies House filing to confirm company details.
Corporation Tax — Tax on company profits (limited companies).
Day rate — Price per day of work; define hours. See pricing.
Dividends — Shareholder distributions from company profits after rules/taxes — not free money.
Freelancer / contractor — Labels people use; tax treatment depends on facts and structure.
G–M
HMRC — UK tax authority.
IR35 / off-payroll — Rules about employment-like engagements. See IR35 survival.
Invoice — Payment request with legal/trading details.
Limited company — Separate legal entity; directors/shareholders. See sole vs limited.
Mutuality of obligation — Concept in status tests about ongoing work expectations.
N–S
National Insurance — Contributions alongside income tax frameworks for many workers.
Net terms — Payment due in X days (net 14, net 30).
PAYE — Pay As You Earn payroll system.
Personal service company (PSC) — Common label for a limited company providing the worker's services.
Scope creep — Extra work without extra pay or time.
Self Assessment — How many sole traders (and others) report to HMRC.
Sole trader — You are the business for most legal purposes.
SOW — Statement of work; defines deliverables.
T–Z
Target rate — The rate a good week should average — pricing.
Umbrella company — Intermediate employment structure some contractors use; understand fees and rights.
VAT — Value Added Tax; registration thresholds and schemes change — verify current rules.
Working capital — Cash to run operations between invoices.
How to use this glossary
When an article links here mentally, return to the deep guide for process. Glossary ≠ advice.
Related
Practical detail
This section deepens UK Business Glossary for Freelancers with concrete steps you can use immediately.
Checklist
- Define the outcome you want from this topic in one sentence.
- Note constraints (budget, time, equipment, dietary needs, client type).
- Apply the core method on this page once without improvising mid-way.
- Change a single variable if results disappoint.
- Write a two-line note for next time (what worked / what failed).
Common mistakes
- Skipping fundamentals to buy gear or hacks
- Copying advice from a different country or context without adapting
- Changing three variables at once so you learn nothing
- Ignoring primary sources when rules/safety matter
- Publishing opinions without criteria (for rankings)
Quality bar
A good result is repeatable, explained, and honest about trade-offs. If a tip only works in perfect conditions, treat it as optional.
Site connections
Use related links below and the site navigation to move between planning, method, and reference pages. Prefer this site’s guides over random threads when you need UK-relevant process.
Operator note
Freelancers win with systems: pricing floors, deposits, weekly admin, and selective clients. Revisit pricing, getting paid, and client red flags when commercial pressure rises.