Who can use this contract appointing a self-employed person?
This form of contract appointing a self-employed individual to provide services is suitable for a wide range of appointments – from engaging a drama tutor to a bookkeeper. The contract is in the form of a letter to the individual which he/she will countersign.
What are the main issues?
The letter makes it clear that the individual is not an employee. The company pays a fee for specified services and the individual is responsible for their own tax and national insurance. The company does not pay for holidays or if the individual is off sick.
As the individual is not an employee but an independent contractor, he/she should submit an invoice at the end of each payment period and there will then be a specified time within which payment should be made.
There are tax implications for a contract such as this. HM Revenue & Customs can in certain circumstances require an individual to be treated as an employee and subject to PAYE and NICs. There are also risks that the individual is held to be an employee for employment law purposes as well. You should take advice from an accountant or lawyer on each occasion this letter is used.
What detailed terms does the contract contain?
The letter makes reference to the following:
- minimum working hours
- changes to services
- payment rate
- duty of care
- relationship between parties
- tax and National Insurance contributions
- data protection
- post-termination obligations
- governing law
Use this document if you want to appoint an individual on a part-time, self-employed basis, and want clarity on the terms governing your relationship.
For more information, see our Explanatory Notes which you will receive when you download the document from our website
When I download the document, can I change it and/or use it more than once?
Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs
ContractStore supplies templates and is not a law firm. But all our templates are written by experienced lawyers so we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.
If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form
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