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Part #2: Consultancy agreements – commercial protection

Posted on: February 11th, 2021 by Ginny Hallam

With IR35 changes fast-approaching, ensuring consultancy agreements are flexible, consistent with self-employed status, and protect key commercial exposure is vital. Here are our thoughts:

Equipment – set out whether the consultant can use your property in delivering the services and if so whether there will be a charge for doing so.

Invoicing – be clear when you expect to receive an invoice from the consultant, what the invoice should cover, and when payment should be made.

Expenses – provide an expenses policy which identifies whether the consultant can incur expenses on your behalf and if so the process for doing so.

Authority – stipulate whether or not the consultant can make binding decisions on your behalf, any limits on the decisions they can make, and the authority they need to secure.

Notice – set out the notice required from both yourselves and the consultant during the life of the contract (in particular make it clear that if you want to end the contract before the consultant starts working with you what notice will be due).

Insurance – make sure the consultant has got adequate insurance for the services they’re providing so you can rely on it in the event that things go wrong.

Get in touch if you’d like us to review your existing consultancy agreement terms, or you’d like access to our consultancy agreement template.

 

This update is accurate on the date it was sent (11 February 2021), but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.