Model Contract For Provision Of Services (Self-Employment) (Page 2 of 3) in pdf

the impact of the timing of the work to be performed upon the activities of The Company and

any other Sub-Contractors also engaged by the Company.

The company should not be able to exercise control over the Sub-Contractor such that he can

be told where, how and when to work. He should be given a task and left alone to organise it as

he sees fit.

1.6 The Sub-Contractor shall be responsible for rectification of any unsatisfactory work at his

own expense.

This demonstrates the Sub-Contractor bears personal financial risk, which is a classic feature of

self-employment.

1.7 The grant/acceptance of this appointment does not create any mutual obligations on the part

of the Company or the Sub-Contractor to offer/accept any further appointment and no

continuing relationship shall hereby be created or implied.

2. PROVISION OF EQUIPMENT AND PROTECTIVE CLOTHING

2.1 It is understood and agreed that Sub-Contractor shall be responsible for the provision of all

Tools, Plant and Machinery needed to perform the services.

Typically employees only provide small tools – the need to hire plant reinforces self-employed

status.

2.2 Sub-Contractor is responsible for the provision of safety equipment, protective clothing and

adequate industrial accident insurance cover for himself and anyone authorised by him to

perform all or any part of the services.

This reinforces self-employed status as an employee is provided by Statute with a wide-ranging

degree of health and safety protection.

3. STATUS OF THE SUB-CONTRACTOR

3.1 The Sub-Contractor’s relation to The Company is that of an independent contractor and

shall have the status of a self employed person and shall be responsible for all Income Tax and

National Insurance or similar taxes or contributions in respect of the consideration payable

hereunder and the Sub-Contractor hereby indemnifies the Company in respect of any claims

that may be made by the relevant authorities against the Company in respect of Income Tax or

National Insurance or similar taxes or contributions, including interest and penalties, relating to

the services of the Sub-Contractor hereunder.

3.2 The Sub-Contractor agrees to be responsible for his expenses and Value Added Tax.

3.3 Nothing in this agreement shall be deemed to create any partnerships, joint venture or

employment relationships between the parties.

4. CONSIDERATION

4.1 The agreed consideration for the provision of the services is £_________________, payable

_________ly following submission of an invoice.

Ideally the consideration should be based upon completion of a task or in some way geared to

performance, rather than an hourly rate and in no circumstances should a weekly wage or

similar earnings be involved. Obviously the ‘price’ should reflect the additional costs now borne

by the sub-contractor personally (e.g. plant hire). Also there should absolutely be no entitlement

to overtime, sick pay or holiday pay.

4.2 All payments made under this Agreement are expressed exclusive of any Value Added Tax

chargeable thereon.

4.3 No further payment will be made to the Sub-Contractor for the services over and above the

Model Contract For Provision Of Services (Self-Employment) Page 2