Consultancy Agreement - Personal Services Company (public)
This Consultancy Agreement is designed for a UK-based individual consultant operating through a personal service company (PSC) providing services to a 'small' client company. It outlines the terms of engagement, including services, fees, intellectual property, and addresses tax liabilities under the UK's IR35 rules. The agreement also covers confidentiality, data protection, and compliance with anti-bribery and tax evasion laws.
Explanatory Notes
This agreement has been prepared for use only where the consultant is a UK based individual providing services through their own limited company (a 'personal service company' or 'PSC'), and where the company receiving those services (the 'Client Company') is a 'small' company.
Where the Client Company is 'small', under the 'IR35' rules it's the responsibility of the PSC to determine whether the worker would have been a deemed employee (for tax purposes) of the Client Company and to operate PAYE accordingly.
A different set of rules (the 'Off Payroll Working' rules) currently apply to medium or large Client Companies.
Certain optional clauses are included in the draft and details that need to be amended/inserted are in square brackets. However, you should ensure that all clauses of the agreement are relevant to and appropriate for the commercial terms agreement with amendments made as necessary and subject to the comment above.
CONSULTANCY AGREEMENT
PARTIES
THE CONTRACTOR, whose details are set out below (the 'Contractor'); and
THE CLIENT, whose details are set out below (the 'Client').
OPERATIVE PROVISIONS
Definitions and Interpretation
In this Agreement unless the context otherwise requires the following words and expressions will have the meanings given to them below:
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England & Wales note
This version is drafted for England & Wales. Scotland and Northern Ireland differ on some points — for example notice periods and tribunal procedure. Tell GitLaw where you hire and it adjusts the draft.
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