Consultancy agreement
- Customisable to your needs
- Provides key protections for your business
- UK GDPR compliant
A consultancy agreement is a contract explaining the legal relationship between a self-employed consultant and their client. It sets out the terms and conditions around the consultant’s services and the expectations and responsibilities of both parties. It might also be referred to as a freelance contract, a consultancy contract or a consulting agreement.
Use this template if you are:
- a business engaging a consultant who is providing services through their limited company;
- a business engaging a consultant who is providing services as a sole trader or through a partnership;
- a freelance consultant providing services through a limited company; or
- a freelance consultant providing services as a sole trader or through a partnership.
Although it’s not a legal requirement, using a formal, written contract for consultancy services will help to ensure that all parties are on the same page about the services being provided.
This consultancy agreement will provide your business with valuable legal protections whether you are acting as a consultant or engaging a consultant, including in relation to your confidential information and intellectual property.
Q&A
When should I use this document?
Use this template if you are:
- a business engaging a consultant who is providing services through their limited company;
- a business engaging a consultant who is providing services as a sole trader or through a partnership;
- a freelance consultant providing services through a limited company; or
- a freelance consultant providing services as a sole trader or through a partnership.
This contract is fully customisable to your business needs and includes all the relevant commercial terms agreed between the parties.
What does this document cover?
This template consultancy agreement contains different terms depending on whether you are acting as a consultant, or engaging a consultant. It will be weighted in your favour, so the other side may wish to negotiate certain terms with you.
Basic terms include:
- what services will be provided;
- the fee payable, including expenses and payment terms;
- any rights to substitute another person to provide the services;
- liability and indemnities;
- how the agreement can be terminated;
- confidential information and data protection; and
- intellectual property rights.
Why do I need this document?
It’s best practice to use a formal consultancy agreement whenever you engage a consultant, or if you're providing services as a consultant, even though it’s not a legal requirement.
By putting agreed terms and conditions in place, you can not only provide your business with key legal protections, but you can also ensure both parties are clear about the scope of the services being provided.
Whilst the specific terms of your consultancy agreement will depend on the nature of the services being provided and your commercial negotiations, this template will help to ensure that key terms are agreed.
Where can I find out more?
If you’re considering whether to hire a consultant and whether it is the most appropriate type of staff member for you, see our guidance on Different types of staff and Contracts for freelancers.
If you’re starting out as a consultant and you’re considering whether to provide your consultancy services as an individual or through a company, we’ve got guidance on Consultancy services to help you out. This includes information about the IR35 tax rules.
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