Self-Employment and Freelancer Contracts
These Self Employment and Freelancer Contracts cover a range of legal and business arrangements under which various professional and other services are provided either by consultants or contractors to clients or by sub-contractors to main contractors.
These documents are designed to be used where the consultant, contractor or sub-contractor is an individual (rather than a company) working as self-employed person (i.e. as a freelance consultant or sole trader).
The documents take account of the need to minimise the risk that the individual will be found by HMRC or any court or tribunal to be an employee. The Guidance Notes below help to outline that risk, and there is additional information in IR35, Employment and Self-Employment .
Despite the use of a suitable self-employment/independent contractor agreement, there may be a risk that an employer-employee relationship for employment law or tax purposes may exist between the supplier of the services and his/her client (although the intention is for the contractor to be self-employed), or there may be other adverse tax consequences. Legal advice should therefore be taken as appropriate before use of any of these forms of agreement.
If, the client or main contractor is to engage a personal service company or consultancy company (not an individual) and that company is then to provide the services of an individual professional(s) or worker(s) to the client, you should instead refer to the IR35 And Other Company Contracts .
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Frequently Asked Questions
I want to bring in help without taking on an employee. What contract do I need? +
Use a self-employed contract that matches the working arrangement, not an employment contract. If you want ongoing expert input, use a consultancy agreement. For project or creative work, use a freelancer contract. If you are a main contractor passing work down, use a subcontractor agreement. Each Simply-Docs template is drafted to record a genuine self-employed relationship and reduce the risk that the individual is later treated as your employee.
What is the difference between a consultant, a freelancer and a subcontractor? +
The difference is mainly how they work with you, not their tax status, since all three can be self-employed sole traders. A consultant gives specialist advice or expertise, usually over a defined engagement. A freelancer delivers discrete pieces of work or projects, often creative or digital. A subcontractor does part of a job you have taken on for your own client, so you sit between them and the client. Simply-Docs has a separate template set for each.
If someone is genuinely self-employed, do I still need a written contract with them? +
Yes, you should. A written contract is not legally compulsory, but working without one leaves fees, deadlines, ownership of the work, confidentiality and how either side ends the arrangement uncertain. A clear self-employed agreement also helps show HMRC and any tribunal that the relationship is genuinely one of self-employment rather than employment. Simply-Docs provides templates that set these terms out for consultants, freelancers and subcontractors.
Will using a self-employed contract stop HMRC or a tribunal treating my contractor as an employee? +
No. A self-employed contract helps but cannot by itself decide status. HMRC, a court or a tribunal look at how the arrangement works in practice: whether the individual must do the work personally or can send a substitute, how much control you have over how and when it is done, and whether there is an ongoing obligation to offer and accept work. If the reality looks like employment, the label does not save it. The templates reduce that risk, they do not remove it.
Does IR35 apply when I hire a self-employed sole trader directly? +
No, not directly. The off-payroll working rules, known as IR35, apply only where an individual provides services through their own intermediary, usually a personal service company. A genuine sole trader who contracts with you in their own name falls outside IR35. You still have to get their employment status right, because if HMRC decides the person is really an employee you can be left liable for unpaid tax and National Insurance. For arrangements involving the individual's own company, see the IR35 and Other Company Agreements group.
I am going self-employed and a client wants a contract. Which one covers me? +
Choose the template that fits the work you are offering. If you advise or bring specialist expertise, use a consultancy (sole trader) agreement. If you take on projects or commissions, use a freelancer contract. If you work under a main contractor, use a sole trader subcontractor agreement. These are written so both sides know the scope, fees, timescales and who owns the work, and so your self-employed status is clear from the outset.
What is the risk if I get a contractor's employment status wrong? +
Getting it wrong is costly. If HMRC decides your self-employed contractor was really an employee, you can face backdated income tax, National Insurance and penalties on payments already made. The individual may also bring employment tribunal claims for rights that come with employee or worker status, such as holiday pay, the national minimum wage or unfair dismissal. This is why the arrangement itself, not just the contract wording, needs to reflect genuine self-employment.
