Self employed persons: contract for services  

About this contract for services

This is a contract for services between a self employed contractor and a client. It is designed, as far as possible, to distinguish the relationship as a business one, and not one of employment.

For the self employed person, it can be used as a contract to be presented to new clients before work starts.

For a business looking to hire a self employed person, it can provide the essential starting point to form a working relationship.

It is suitable to be used by tradesmen such as builders, gardeners, or plumbers, and anyone providing services on a project basis.

The law relating to contracts for services

A contract for services is a common law term and not defined by legislation. However, a contract of service is defined in employment and tax legislation, meaning an employment contract.

If you’re self employed, you should make sure that your contract with your client as far as possible, defines your relationship as a business to business one.

How much tax you are liable to pay (and also how much your client must pay) depends on your relationship. If HM Revenue & Customs could argue that in reality your agreement was in fact a contract of service then you would be liable to pay a far higher rate of tax on the price of the contract.

It goes further than that for your client. 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. Savvy clients are likely to reject any contract that may make them an employer. On the other hand, a well written contract is likely to impress professionalism and signal that you take your business seriously as it protects your client as well as you.

A well written contract for service (such as this one) therefore identifies the issues that HMRC or an employment tribunal might consider and clarifies the terms of the agreement  so that it would be difficult to argue that the relationship was not a contract for services. In practice, HMRC will “look through” the contract at the reality of the situation, but setting out the considerations in a contract supports a claim of self employment and ensures that both parties are clear as to how they should act to maintain the relationship as a business to business one.

Who should use this contract for services

This document can be edited and reused for each new client that you win. It is suitable for any service provider, including:

• Professional tradesmen such as builders, plumbers, electricians, plasterers, decorators and gardeners
• Self employed people undertaking specific pre-defined project work, e.g. commissioned artists

It is also suitable for businesses using self-employed people that want to use the same contract for services for all contractors to ease administration and to ensure the relationships are set out as not being ones of employment.

If you are providing consultancy services, then a consultancy agreement may be more suitable.

Document features

“Over-arching” agreement designed for ongoing use to cover a series of assignments

• Service provider to work from home or at client’s premises
• Very flexible to suit the requirements of either or both parties
• Provides a complete framework
• Protects both sides
• Establishes as far as possible a self employed status for the purposes of IR35
• Reduces the chances for employer obligations to arise

Contents

• Obligations of both parties;
• Fees and expenses;
• Duration and termination;
• Matters after termination;
• Insurance;
• Confidentiality
• Intellectual property;
• Appropriate legal provisions: warranties, exclusions, indemnities;
• Other provisions for contracts for services.

Reasons to buy from Net Lawman

Full money back guarantee – buy with confidence
Your document comes with a no questions asked full money back guarantee. You take no risk that it might not be right. Once you buy it, we’ll give you 30 days to evaluate it in any way you want. If for any reason you’re not happy, just e-mail us and we’ll refund your money in full immediately.

Guidance notes included - prior legal knowledge is not required
Comprehensive guidance notes, written by the author of the document, are included. These notes ensure that you don’t need to be a lawyer or have knowledge of the law to understand which paragraphs you should edit to complete the document.

Minimal editing required
The contract has been written specifically in such a way that you don’t need to spend hours editing it. It uses an approach where you remove the sections that aren’t applicable to you, so you don’t have to add any back, write your own, or worry about whether you are using correct legal language.

Paragraphs have been written to stand alone from each other. Removing one that isn’t applicable to your circumstances doesn’t affect the standing of any other in the document.

Plain language minimises future disagreements
Your contract for services is real law written in plain language that all parties will understand. This will minimise the likelihood of later disputes.

If a dispute does arise with your client and you find yourself in court, the judge will look more favourably on a legal agreement written in plain language over one peppered with complicated legal jargon. Your case will be stronger if it is clear that both sides understood the agreement when it was signed.

Buy once – re-use again and again
You can use the contract as many times as you like for any new client – just create a new document from the master version.

Delivered straight to your inbox
As soon as you complete the secure checkout process, we will send your document straight to your inbox. We will also keep a copy for you for 60 days in our customer area so you can access it even when you are away from your e-mail.

Still unsure whether this is the right document for you?
If you are unsure whether this contract for services is suitable for your particular circumstances, then you have two options. The first is to buy now, evaluate the agreement, and use the 30 day, full money back guarantee to obtain a refund if it isn’t suitable. You take no risk in seeing the contract. The second option is to contact us using the link below and ask. We can’t offer you legal advice on your situation, but we can help you find the document you want. We aim to respond to your question within 24 hours.