Whether you work as a consultant in another business or you employ consultants in your own business, a Consultancy Agreement can offer you the protection you need to ensure that the both parties are clear as to the requirements and expectations around the project or ongoing arrangements and very importantly the period of the commitment and the charges involved.
When you appoint a consultant, the agreement needs to accurately reflect your business requirements and detail exactly what work needs to be completed and by when. Predictably therefore, if you are the consultant you will be just as keen to have a clear record of these requirements and of any limitations to the service you are offering.
At that heart of this then is the need for clarity and the avoidance of mistakes and complications born out of assumptions or misunderstandings.
Consultancy agreement issues
As explained above a consultancy agreement is there to identify and document the terms of the work that will be completed by the consultant, together with the fees, whether VAT is payable or not, and the timeframe for deliverables during the project as well as at the end of the project.
The status of the consultant company or individual is an important issue to both the consultant and the client and it is usual for the agreement to reflect the level of independence that the consultant has, their responsibility for issues such as their own insurance and tax arrangements. This is often reinforced by an agreement that the consultant is not an employee of the client. This is of obvious importance to the client who does not want to take on employer type responsibilities for a company or person that they consider to be independent of their own business.
Assuming that both the client and the consultant will be dealing with the tax issues of the arrangement on that basis they will need to check that their arrangements do in fact meet the requirements of Her Majesty’s Revenue and Customs on this point, which are known as IR 35. The IR 35 regulations mean that if a person has reported income and paid tax as a self-employed person, but the Revenue consider that the relationship was in fact an employment relationship, both they and the client will be liable to pay the taxes due on an employment basis, including Income Tax and National Insurance Contributions, together with any interest and penalties.
Why choose Huntley legal?
We will use our expertise and considerable experience to provide you with clear and straightforward advice and to assist you to ensure that your Consultancy Agreement meets your needs and manages your legal and commercial risks properly.
To start, we will have a detailed discussion about your requirements and then provide you with an estimate of how long the work will take. As a result of our expertise in these types of agreements we can offer you fixed or capped fees where appropriate.
FREE initial enquiry
To discuss your legal needs, please call Marie Huntley on 020 3609 8764.
Simply outline the situation you're facing, and we'll tell you how we can help and what it will cost.
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By the way, our fees are often fixed or capped to help you budget, and we send invoices monthly so you can spread the cost.