Contractor Agreement Template (UK) — Hire Freelancers on Solid Terms

When you need one

Any time someone who isn't your employee does paid work for your business: designers, developers, copywriters, consultants, virtual assistants, bookkeepers. Even for small one-off projects, a short written agreement prevents the three classic disputes — what exactly was agreed, what it costs, and who owns the output.

What's in this template

The template covers the scope of work and deliverables (with a schedule you fill in per project), fees and payment terms including what happens with late payment, timelines and what counts as acceptance of the work, intellectual property — assigning ownership of the work product to your business on payment, which is the single most important clause most handshake deals miss — confidentiality, the contractor's independent status, insurance, and how either side can end the engagement. Each clause carries a plain-English note on what it does.

Contractor status and IR35 — what to know

A contractor agreement should reflect a genuine contractor relationship: the contractor controls how the work is done, can typically work for others, and isn't managed like an employee. If your business engages contractors through their own limited companies, IR35 (off-payroll working) rules may apply, and if you're a medium or large company, assessing status is your responsibility. This template is drafted to support genuine self-employment, but paperwork alone doesn't settle status — the reality of the working relationship is what counts. HMRC's CEST tool is the standard starting point, and for borderline cases take professional advice.

Common mistakes to avoid

Leaving IP ownership unwritten (default position: the contractor may own what they create); vague scope that invites disputes over revisions and extras; no kill switch — agreeing no way to end an engagement that isn't working; and paying everything upfront with no acceptance step. The template addresses each of these by default.