Freelancing without a proper contract is one of the most common and costly mistakes self-employed people make. Here's what a solid UK freelance contract must include — and why it matters.
Going freelance is liberating. Working without a contract is not.
Every year, UK freelancers lose money to non-payment, scope creep, and disputes that a well-drafted contract would have prevented. Yet many still work on handshakes, email threads, or vague "agreements" that offer no real protection.
Here's what your freelance contracts need to cover.
A contract is not just paperwork — it is the legal foundation of your working relationship. Without one:
Contracts do not have to be lengthy or written by a solicitor. A clear, plain-English agreement covering the key points is enforceable — even one sent by email, if it demonstrates offer, acceptance, and consideration (the exchange of services for money).
1. The parties Full legal names and addresses of both parties — you and your client. If the client is a company, use the registered company name and number.
2. Scope of work Define exactly what you are delivering. Vague scope is the root cause of most freelance disputes. Be specific: number of revisions included, deliverable formats, what is and isn't covered.
3. Project timeline Start date, key milestones, and the final delivery date. State clearly what happens if the client delays providing information or approvals needed for you to complete the work.
4. Payment terms
5. Intellectual property ownership By default under UK copyright law, the creator of original work owns the copyright — not the client. Ownership transfers only when explicitly assigned in writing.
Your contract should state clearly:
6. Revisions and change of scope Specify how many rounds of revisions are included. Any work beyond that scope is a variation — subject to additional fees. A simple "additional revisions charged at [rate]" clause protects you from unlimited change requests.
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7. Cancellation and kill fee What happens if the client cancels mid-project? A kill fee clause (typically 50% of the remaining project value) compensates you for work done and opportunity cost. Without one, you may have limited recourse.
8. Confidentiality If you'll be handling sensitive business information, a mutual confidentiality clause protects both parties. Keep it balanced — it should bind the client's information too, not just yours.
9. Limitation of liability Consider including a clause limiting your liability for indirect or consequential losses. Without this, a client could theoretically argue that a delayed website launch cost them millions in lost sales.
A proportionate limitation — capping your liability at the total fee paid — is standard in professional services contracts.
10. Governing law State that the contract is governed by English law (or Scottish law if you're based in Scotland) and that any disputes will be resolved in the courts of England and Wales.
Asking for a deposit (typically 25–50% of the project value) before starting work is standard practice and entirely reasonable. It:
Some clients will push back — that's a signal worth paying attention to.
The Late Payment of Commercial Debts (Interest) Act 1998 gives you the right to charge statutory interest on overdue invoices — currently 8% above the Bank of England base rate. You can also claim a fixed late payment compensation charge (£40 for debts up to £999, £70 for £1,000–£9,999, £100 for £10,000+).
You don't need a contract clause to invoke this — it applies automatically to business-to-business transactions. But having explicit payment terms in your contract strengthens your position.
Not necessarily. Many freelancers use well-drafted template contracts from organisations like IPSE (the Association of Independent Professionals and the Self-Employed) or professional trade bodies relevant to their sector.
For higher-value projects, complex intellectual property assignments, or clients with significant negotiating power, having a solicitor review or draft the contract is worth the cost.
A contract only protects you if it's agreed and signed before work starts. Sending a contract after you've begun — or mid-project — significantly weakens your position.
Always ensure both parties have signed (digitally or physically) before you commit time or resources.
Disclaimer: This article is for general information only and does not constitute legal advice. For advice on specific contracts or disputes, consult a solicitor regulated by the Solicitors Regulation Authority. IPSE (ipse.co.uk) offers resources and support for the self-employed.
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