Off the top of my head I know that contractors don't get benefits such as holidays, pensions and other employee benefits. Their contracts have an expiration so

Off the top of my head I know that contractors don't get benefits such as holidays, pensions and other employee benefits. Their contracts have an expiration so they're easier to get rid of on short notice. Also they are treated as capital expenditure versus operational expenditure. And I believe that you can do some accounting that is beneficial tax wise to a company. This is a UK perspective.