Buckworths advises consultancy businesses, independent consultants, and advisory firms, from sole traders and early-stage start-ups through to established practices.
Consultancy businesses have distinct legal challenges. Employment status and IR35 risk is a constant concern when engaging contractors or working through a personal service company. Getting the documentation right is essential. We review consultancy and contractor agreements, advise on IR35 exposure, draft terms of business with clients, and put NDAs in place to protect sensitive information.
IP ownership is also a key issue. When consultancy work produces deliverables for clients, the question of who owns the IP in that work needs to be clearly addressed in the contract. We make sure IP is correctly allocated and retained by the consultancy where it should be.
For growing consultancy businesses, we advise on company structure, shareholder agreements, EMI share schemes, and funding. For those looking to make acquisitions or prepare for exit, we provide full M&A support.
Book a free consultation to discuss your consultancy business.
Our Services
- Commercial
- Commercial Property
- Corporate
- Data Protection
- Dispute Resolution
- Employee Incentivisation
- Employment
- Franchising
- Funding
- General Counsel
- Intellectual Property
- Mergers and Acquisitions (M&A)
- Regulatory Services
- Secretarial Services
- Strategy and Business Support
FAQs
A consultancy business needs well-drafted terms of business or consultancy agreements, a privacy policy, an NDA for use with clients and partners, and employment or contractor agreements for any people it engages. If you use associates or subcontractors, subcontractor agreements are also essential. We advise consultancy businesses on the full range of documentation needed to operate commercially and legally.
IR35 affects consultancy businesses in two key ways: 1. If your consultants work through personal service companies, your clients may be required to assess their IR35 status and deduct tax at source. 2. If you provide services through a personal service company, your own clients may assess your status as inside IR35, making them liable to deduct employment taxes. We review contractor arrangements and provide written status assessments.
Without a clear written agreement, IP ownership in consultancy work can be disputed. Under UK law, IP created by a self-employed consultant generally belongs to the consultant, not the client, unless the contract states otherwise. We advise consultancy businesses on IP ownership provisions in their client agreements and help them retain or transfer IP rights as appropriate.