Contracts

As a Freelancer, you find your own clients, agree your terms and conditions, and sign your terms of engagement.

If you trade as a Personal Service Company (PSC), Limited Liability Partnership (LLP), Construction Industry Scheme (CIS) or Sole Trader, it is essential that you are fully conversant with the terms and conditions under which you will trade, as this will not only define your fee and resulting profit potential (whether fixed price, schedule of rates or daily or hourly charge). It also defines the level of risk you are running, the insurances you will need and your employment status.

For PSCs it is essential that your contract is IR35 compliant and, more importantly, that your working practices reflect the contract in full.

For CIS freelancers, you should ensure that HMRC has your tax status registered to reflect your business (i.e. paid gross, standard or higher deductions).

For CIS contracting companies, you must ensure that all freelancers are correctly registered with HMRC prior to work commencing.

Freelance World offers an IR35 contract review service for those whose DNA Profile™ and freelancer choice results in a PSC as their trading method.

As a Freelancer you must ensure that as you change contract, your working practices and your new contract at all times reflects your tax status, and your trading method remains appropriate.