What is an independent contractor agreement?
An independent contractor agreement is a contract engaging a business or individual to provide services as a contractor rather than an employee, covering scope, payment, insurance, and liability.
Employment & HR
Independent Contractor Agreement
Generate an independent contractor agreement for engaging a contractor business in the UK, drafted to reflect genuine self-employment and support the correct IR35 status determination.
- Create a contractor agreement with insurance requirements
Generate an independent contractor agreement between [Client Name] and [Contractor Name/Business] for [Description of Services], requiring the contractor to hold public liability insurance and specifying indemnity obligations.
- Create a contractor agreement for a specific project
Generate an independent contractor agreement between [Client Name] and [Contractor Name/Business] for [Project Description], covering scope, milestones, payment terms, and equipment ownership.
- Create a contractor agreement supporting IR35 status
Generate an independent contractor agreement between [Client Name] and [Contractor Name/Business] that includes clauses reflecting genuine contractor status (right of substitution, own equipment, no set hours, financial risk), supporting an outside-IR35 determination.
Independent Contractor Agreement Generator (UK)
An independent contractor agreement is a formal contract engaging a contractor — often another business — to provide services, distinct from an employment relationship and typically used for longer or higher-value engagements than a casual freelance arrangement. This free UK independent contractor agreement generator produces agreements covering scope of work, insurance and indemnity requirements, and equipment ownership, drafted to reflect genuine self-employment and support the correct IR35 (off-payroll working) status determination. It is designed for UK businesses engaging contractor firms, tradespeople, and specialist consultants operating through a limited company or as sole traders. The generator lets you specify deliverables, payment terms, liability caps, and insurance requirements such as public liability cover. Use it to formalise a genuine contracting relationship and reduce the risk of a successful HMRC employment status challenge.
Frequently asked questions
How is this different from a freelance contract?
The terms overlap, but independent contractor agreements are often used for more formal, business-to-business, or longer-term engagements, with a stronger emphasis on insurance, indemnity, and IR35 status.
What is IR35 and why does it matter for this agreement?
IR35 (off-payroll working rules) determines whether a contractor working through a limited company should be taxed as an employee for a given engagement; contract terms such as a right of substitution and lack of control support a genuine self-employed (outside IR35) position.
Should an independent contractor agreement require insurance?
Yes, it is common to require the contractor to hold public liability and, where relevant, professional indemnity insurance, and to provide proof of currency.
Who owns work created by an independent contractor in the UK?
Unless the agreement assigns it to the client, copyright in work created by the contractor generally remains with the contractor, so an IP assignment or licence clause is important if the client needs ownership.
What happens if HMRC decides a contractor should have been treated as employed?
The client (or fee-payer) may become liable for unpaid PAYE tax and National Insurance contributions, so the contract terms and actual working practices should genuinely reflect self-employment.