Consultancy Agreements Specialist consultancy agreement solicitors in Milton Keynes

At Heald Solicitors in Milton Keynes, our commercial team represent consultants across a wide variety of industries, drawing up detailed consultancy agreements outlining the terms under which they will be working. We also advise businesses on the ever-evolving risks associated with consultants unintentionally gaining employee status.

Benefits of a bespoke consultancy agreement

A good consultancy agreement will be tailored to the exact requirements of each individual engagement to ensure that whilst the contractor has the flexibility they need, the rights and interests of both parties are protected. It will also reduce the likelihood of a dispute arising.

When using the services of a consultant, a business can take on the help that it requires without the need to engage an employee with all of the statutory and other legal obligations and liabilities that that entails. It means that an organisation can work with a specialist, as and when needed on a cost-effective basis.

IR 35 and consultants

The off-payroll anti-avoidance regime brought in by HMRC in 1999 changed significantly with effect from 6 April 2021. Private sector entities now have to carry the burden of determining whether the regime applies. The repercussions have been considerable.

We can advise both businesses and consultants on how to cope with the problems associated with clients’ attitudes to status determinations and what type of arrangements might be acceptable.

Key clauses in a consultancy agreement

While each consultancy agreement will be different to reflect the specific requirements of a consultant and the business they are working with, it will generally include the following clauses:

• The length of the agreement;
• Services that the consultant will provide;
• Payment terms and conditions;
• A substitution clause, allowing the consultant to appoint someone else to carry out the services on their behalf;
• Indemnities in respect of losses sustained by the client;
• A clause requiring the consultant to have adequate insurance;
• Restrictive covenants preventing the consultant from carrying out certain actions;
• A confidentiality clause;
• An intellectual property clause defining who will own any intellectual property created by the consultant;
• A clause stating that the contractor is not an employee.