Our Consultancy Agreements Service
What is a Consultancy Agreement?
A consultancy agreement is a formal contract that documents the commercially agreed terms between a business and a consultant, often engaged through a personal service company (PSC) or a specialist consultancy provider.
The agreement sets out the specifics of the working relationship and is essential to mitigate risks and avoid disputes.
What does a Consultancy Agreement include?
A consultancy agreement ordinarily contains provisions such as:
- Responsibilities and obligations of the consultant;
- The identity of any individual who is to provide the consultancy services, and how replacements for such individual can be appointed;
- Payment and financial terms, including whether the consultant is to be paid on a time and materials or commission basis;
- Responsibility for tax and social security;
- Liability of the consultant in respect of the advice or services they are providing; and
- Intellectual property rights of the deliverables and materials the consultant delivers during the course of the services.
Managing Consultancy Agreements: Key Considerations
Consultancy arrangements can be complex and can lead to disputes and legal or tax issues if not dealt with correctly. Developments in employment and tax law in recent years have added further complexity as authorities now tend to look at the reality of the relationship in place (rather than the terms of the contract or names the parties have given to the relationship) to identify the status of the consultant.
Businesses who create a relationship with the consultant indicating one of employment may find themselves liable for the associated tax payments and to the individual for various employment rights. In conjunction with a written consultancy agreement, seeking early legal advice is essential for businesses to understand such risks and ensure they have the correct arrangements in place.
Businesses looking to engage a company (other than a PSC) to provide consultancy services generally require a supply of services agreement or terms and conditions together with a service level description.
See Commercial Contracts and Standard Terms and Conditions for more information on these documents. We can draw on our experience in drafting PSC consultancy contracts and supply of services agreements to ensure your agreements cater to your specific requirements.
Consultancy Agreement FAQs
Is the consultant self-employed?
The question of whether the consultant is self-employed is important, as this will determine how its income is taxed and whether the consultant is entitled to additional rights from the client on the basis that they are an employee.
There is no single test for determining the employment status of a consultant, or whether the consultant is self-employed. From a legal and tax perspective, the day-to-day reality of the relationship (rather than the contract or any labels the parties have given to the relationship) will determine this.
It is essential to seek early legal advice before engaging a consultant to explore these issues.
How are consultants ordinarily paid?
Consultants are ordinarily paid on a time and materials basis. In order to maintain a genuine consultancy relationship (and not one of employment), the consultant’s invoices ideally should be issued ad hoc (not at regular monthly intervals) and should be for different amounts each time, depending on the work completed by the consultant.
Who is liable to pay VAT and other taxes when engaging a consultant?
The consultancy agreement should stipulate who is liable for the payment of VAT or other taxes. If the consultancy relationship involves an international element, local law advice may be required as the requirement to withhold sums for tax purposes can vary within jurisdictions.
Who owns the intellectual property rights of what the consultant creates?
The consultancy agreement should make clear who owns the intellectual property rights (IPR) in what the consultant creates. Without such express written agreement on this issue, any IPR created by the consultant will, by default, be the property of the consultant as the author/creator.
Who is liable for the consultant?
Depending on the circumstances, the client may be liable for any losses or harm a consultant causes if the consultant was acting on the behalf of the client at the time such loss or harm occurred. A consultancy agreement can place a consultant under an obligation to maintain insurance to cover any of their acts and indemnify the client for any losses or harm the client may incur.
What is the difference between a consulting agreement and an employment contract?
A consulting agreement is a type of contract used when hiring someone in a self-employed, independent capacity. A consultant works for themselves, not as an employee, and is not entitled to employment benefits like holiday pay or sick leave.
An employment contract, by contrast, creates an employer-employee relationship with legal rights and protections under UK employment law.
It is important to be aware that simply calling an arrangement a consultancy is not sufficient in itself to prevent that arrangement being treated as an employment relationship if, in practice, it has the markers of employment. This classification has legal and tax implications so it is important to consider how the arrangement is likely to be analysed before the engagement starts.
What is the difference between a contractor and a consultant?
Both terms are generally used to refer to individuals who are self-employed and work under a contract for services rather than as employees. There are some differences in the common usage of the two terms:
Contractors typically carry out hands-on, task-specific work (e.g., software development, construction).
Consultants are generally engaged to provide strategic advice or specialist expertise (e.g., management consultancy, marketing strategy).
From a legal standpoint, however, the terms are often used interchangeably.
Our Approach to Consultancy Agreements
Consultancy arrangements can be complex, and recent years have seen numerous high-profile cases challenging the traditional understanding of who is and who isn’t acting as a self-employed individual.
We recognise the opportunities and risks inherent in entering into a consultancy arrangement.
Our approach is to provide specialised, practical and clear legal advice in combination with contracts tailored to your needs, to ensure that you are equipped to create opportunities for your business and mitigate known risks.
By working closely and drawing on the experience within our Employment and Commercial Teams, we can keep you fully abreast of legal and tax developments relating to consultancy arrangements and deliver a complete service for your requirements.
Our Consultancy Agreement Experience
Recent examples of our work include:
Consultancy Agreement for Technical and Product Support via PSC
Preparation of a consultancy agreement via a personal service company for the provision of technical support, product advice, and customer services to a software development business.
International Consultancy Services and IP Licensing Agreement – Orthotics Sector
Drafting an international consultancy agreement addressing both service provision and the licensing of intellectual property and know-how in the orthotist and prosthetist industry
Advisory on IT Consultancy Services Agreement - International Retail
Advising an IT consultancy on service provision to a global fashion retailer, with a focus on risk management and commercial alignment.
Construction Consultancy Appointment Terms for National Infrastructure Project
Advising and drafting consultancy appointment terms for a construction business engaged in a major UK-wide project.
International Consultancy Contract for Outsourced Accounting and Business Management
Assisting a management company in structuring a cross-border consultancy services agreement covering outsourced financial and operational management.
Contract Review: National Consultancy Agreement for Composite Materials Supplier
Reviewing and advising on a consultancy agreement for a national supplier of wood plastic composite products, focusing on liability, scope of services, and termination provisions.
Why Work With Our Commercial Team
- We provide a partner-led service to ensure you receive the best commercial legal advice and support.
- We have a large and proactive commercial team which can meet your deadlines.
- You will receive city-quality commercial legal advice and commercial services at regional prices.
- As part of a full-service commercial law firm, our commercial solicitors work closely with our Dispute Resolution, Employment, and Commercial Property departments to provide our clients with a seamless service.
- We have been ranked as a Top Tier law firm by the Legal 500 for the last seven years and recognised as a Top 200 Law Firm in 2022.
- Our commercial solicitors are easy to deal with and understand that a common-sense approach is often required.
- We give our clients an estimate of the costs involved in undertaking any work at the outset and provide cost updates regularly.
- We understand that each matter is unique to your circumstances and that you need support from a commercial lawyer experienced in dealing with various clients and types of work.
- We are a full-service law firm operating from a one-site office, which means our teams communicate effectively and efficiently.
- Our commercial team use the latest technology to ensure that we are working as efficiently as possible and that geographical distance does not prevent us from providing excellent legal advice and client service.
Testimonials
Julie L
Richard and Olivia were great to work with from start to finish. They took time to understand our industry, and how we worked as a company. This, mixed with their professional knowledge, allowed the process to be seamless, and produce specific documents for our business. I would highly recommend the team, and I am pleased that I have built this relationship so that if any services are required going forward, I will be able to contact them knowing I will receive a high level of service.
Nick
We had an outstanding experience with Myerson Solicitors. From start to finish, the team was professional, efficient, and approachable. Our solicitor, Olivia Whittaker, was particularly remarkable - her attention to detail, clear communication, and expert guidance made the entire process smooth and worry-free. We couldn’t be happier with the outcome and highly recommend Olivia and the firm to any business seeking expert commercial legal advice.
Richard
We needed to rewrite our online terms and conditions to ensure compliance with all legal aspects. Olivia and Richard were outstanding in their advice and assistance. They guided us through every step of the process, providing valuable insight and expertise. Their professionalism and clear communication made a complex task manageable, and we couldn't be happier with the service they provided.
Andrew
I engaged Richard Meehan, Myerson Solicitors, for the drafting of a complex multi-product exclusive supply agreement. He was thorough, explained in plain English and kept me updated consistently throughout. In addition, his after service communications were excellent, ensuring that we felt supported in our negotiations. Great service, before, during and after, which is the benchmark that I have come to expect from all my dealings with Myerson Solicitors. A great team.
Adrian
Richard and the team at Myerson were excellent. They guided me through a relatively complex legal situation and weren't afraid to admit when they needed to bring in other divisors to offer the best guidance which I appreciated. It was all done efficiently and for a fair price. A great experience.
Mo
I recently worked with Richard to draft an international supply agreement, and I couldn't be happier with the service I received. He was highly knowledgeable, easy to work with, and always responded promptly to any questions I had. I felt well-supported from start to finish and would highly recommend Richard to anyone looking for a reliable and experienced solicitor for commercial contracts.
Ben
Exceptional service, Richard and his colleagues were professional and personable not like other law firms we have worked with in the past. It was clear from the outset that Myerson were very down to earth and willing to put in the work to help us achieve our goals. They were a delight to work with on our contract negotiations. I would highly recommend them.
Aceplan Player Development Ltd
I worked with Richard Meehan and Olivia Whittaker, who helped me to build a comprehensive set of legal documents for my software business. This included terms and conditions for the different user types, privacy and cookie policies, and general website terms. Their legal knowledge and what was required for my business was very impressive. It left me feeling reassured and confident in the work they prepared. All the deadlines were met and I'm really satisfied with the end product.
Torram Ltd
I couldn't recommend Myerson Solicitors highly enough. Richard and Olivia were fantastic to work with, they were extremely professional and knowledgeable and knew how to get the best out of my contract. They were very responsive and ready to answer all of my questions whenever I asked them. They are a safe pair of hands for anyone starting out in business and don't have any personal recommendations for solicitors. They're very capable and very pleasant to work with and compared to other companies, fairly priced.
Peter
Myerson deserves more than 5 stars. I am exceptionally pleased with the work done by Richard M at Myerson who worked on the Terms for my startup. Incredible depth of knowledge and amazing turnaround time. Highly recommended!
Matt
As a start-up company, we needed specific advice, work and contracts drafting on key contracts. (Customer and Supplier) along with specific website and cookie policies. Myerson's completed this work on time and to a high standard. Importantly, they advised on which areas to focus on to spend time and money - very important for a start up. Every member of the team was very capable and if they did hand over, the person handover to was always fully briefed and up to speed with our account and work. Highly recommended.
Jason
We needed a flexible VAR agreement for our AI based software offering that could be easily adapted to a wide variety of partnerships, engagement models and go-to-market strategies. The Commercial team did a great job making sense of our sometimes confused and over-complicated requirements, and simplified it down to exactly what we needed. Soon after we successfully used the agreement with a large multi-national corporation. All in all a great result and a great experience.
Joe
Very pleased with the service received in updating T&Cs and other legal documents. Excellent communication and useful discussions, getting to understand our business and its requirements.
Emad Salib
The team were highly responsive, clear in their advice, and demonstrated a strong commercial understanding of our business and the sector we operate in. They provided practical, well-structured guidance and were proactive in highlighting potential risks while offering sensible solutions. It was a pleasure working with them, and we would not hesitate to recommend Myerson.
Steve Ridd
Rich Meehan at Myerson provided clear, pragmatic and highly effective support on a range of complex commercial matters. His advice was responsive, commercially focused and instrumental in helping us manage risk while progressing key initiatives. Richard worked collaboratively with the executive team, translating legal complexity into practical guidance, and I would have no hesitation in recommending him and Myerson for trusted commercial legal support.
Related Services
Meet Our Consultancy Agreement Solicitors
Home-grown or recruited from national, regional or City firms. Our specialists are experts in their fields and respected by their peers.
Contact Our Experts
You can contact our lawyers below if you have any more questions or want more information:
0161 941 4000
Latest Myerson Commercial Law News
7
Retail and Hospitality: Growing your Local Business
A practical webinar for retail and hospitality businesses on employment, property and commercial law for growth. Growing a retail or hospitality business brings exciting opportunities but also a range of legal and commercial considerations that can affect long-term success. Join Myerson Solicitors’ Retail and Hospitality sector specialists for a...
View Event
1
Five Key Legal Themes for Online Platforms in 2026
A practical webinar on the legal risks and key considerations for online platforms, marketplaces and digital services . The opportunities for businesses to operate as online platforms have never been greater whether acting as a marketplace for goods, facilitating peer-to-peer services, or offering outsourced platform-based functionality such as...
View Event
Myerson Celebrates Four Nominations at the Manchester Legal Awards 2026
Myerson Solicitors has been shortlisted in four categories at the Manchester Legal Awards (MLA) 2026 , one of the region’s most prestigious celebrations of legal excellence. The ceremony will take place on Thursday 2nd July at a gala event bringing together the North West legal community.
Read News
CO₂ Shortages: Key Legal and Contractual Issues for Manufacturers
Current geopolitical tensions in the Gulf region have renewed concerns about the resilience of global energy and industrial supply chains, increasing the risk of disruption to key inputs such as carbon dioxide. While the UK has recently agreed to invest £100 million to reopen a carbon dioxide production plant on Teesside as part of a contingency...
Read Blog
Commercial Contracts in 2026: 5 Key Trends in AI, Data Protection & Technology Risk
At our recent webinar, Commercial Contracts in 2026 | AI, Data Protection & Technology Risk , Richard Meehan , Partner in the Myerson Commercial Team and Head of the Technology Sector Group, explored five key themes shaping commercial contracts in 2026. The session focused on the practical issues arising from the complex, rapidly changing nature...
Read Blog
Ring-Fencing Risk in Manufacturing: Is It Time for a Holding Company?
Manufacturing is one of the most asset-heavy and risk-exposed sectors in the UK. When something goes wrong for the business, the financial consequences can be significant. Despite the risks associated with a manufacturing business, many still operate through a single limited company that owns everything, from the trading operation to properties...
Read Blog