Consultancy Agreement (consultant to client) – simple

What’s a consultancy agreement (consultant to client) – simple – and when should you use it?

This is a straightforward contract for services agreement, particularly suited to individuals who work as freelancers, contractors and consultants.

This document will be drafted and presented by the consultant, contractor or freelancer to a new client as “my contract”.

It is drafted in simple terms and does not deal with issues around data protection or GDPR.

Nor does it provide for working on the client’s premises.

You are offering your services as a self-employed person (either as a sole trader or a limited company) to a business or individual.

The purpose behind this contract for services is to work with an individual or business as a contractor, and not as an employee.

What else might you need?

It’s important to distinguish contractors, who are self-employed, from employees, not least for tax reasons.

Self-employed persons operate either as sole traders (and would use a contract for services such as this template) or as a part of their own limited company.

Self-employed contractors can choose what work they do, and they can decide when and where they complete the work.

They are able to outsource work to others, they provide their own work equipment, and they often work for more than one client at a time.

They’re responsible for arranging for their own tax and Social Insurance contributions.

They have fewer rights than employees.

It’s important to ensure that a contractor is not an employee in disguise – even if that outcome is inadvertent.

Getting it wrong can mean that both parties will face fines from the Revenue.

The wording of this template is carefully constructed to provide clarity about your respective intentions and to avoid ambiguity about the role that the consultant is to play.

Of course, drafting in a document is one thing.

You’ll need to ensure that your relationship in practice is consistent with what’s described in this document and conforms to the legal rules.

Our guide Contractor or employee?  also provides helpful background.