Savvy clients are likely to reject any contract that may make them an employer. If it could be argued that you are not self-employed but rather an employee, then the client would have further costly obligations to you under employment law such as statutory holiday leave. It goes further than that for your client. If HM Revenue & Customs could argue that in reality your agreement was in fact a contract of service then your client would be deemed to be your employer and be compelled to hold back your tax and National Insurance contributions under the usual PAYE rules. If you’re self-employed, you should make sure that your terms with your client, as far as possible, define your relationship as a business to business one.
However, a contract of service is defined in employment and tax legislation, meaning an employment contract. Note that we do have a range of agreements tailored for specific construction industry trade as well as a large number for consultancy and many other business sectors.Ī contract for services is a common law term and not defined by legislation. It is suitable for any type of service such as building trades, household service provision, business consultancy, and creative work contracts. The agreement has been designed, as far as possible, to distinguish the relationship as a business one, and not one of employment. If you subsequently perform more work for the same client, your pre-agreed terms automatically cover that new work (unless you want to specify otherwise) allowing you to focus on winning and performing the work rather than dealing with administration. It should be presented before work starts. The document can be edited and reused for each new client. We have included the terms required under the Data Protection Act 2018 including GDPR, making this contract compliant with that law.
The agreement principally deals with the terms under which the work is done, and refers to a specification of work which you provide as a schedule or a separate document. He or she may subcontract some of the work.
This contract can be used for any type of assignment where the contractor is a self-employed individual working as a sole trader or under a service company.
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