Do I need to register my business as being self-employed first?
The prevailing economic conditions have rendered many people unable to meet their needs. Either because they are unemployed, or do not earn enough to keep up with the high inflation rates and costs of living. To make ends meet, some people have opted to take on several jobs at the same time. The majority, however, have decided to venture into alternative income generating activities such as freelancing and entrepreneurship.
Freelancing is usually suitable since it is practiced across all industries and allows for flexibility in schedule. None the less, it is crucial that you protect your business interest and those of your clients as well. For this, you need to understand a few things about drawing up a contract and its validity.
What is a contract?
A contract is a document signed between a client and professionals or service provider. Its purpose is to define the nature of the business that the two parties will be undertaking. It serves as guidance regarding the work to be done and reparation to be made upon completion. Both parties must sign this document as an expression of their agreement to the terms and conditions stated.
The importance of a contract
The primary purpose of a contract is to set out the details of the project you are undertaking and safeguard the interests of both parties, in the case something goes wrong. For instance, if the client declines to make payment or demands for lower rates than agreed upon, the contract will quickly bring things to clarity. Its presence also gives you the option of taking legal action.
A contract also provides clarity about the expectations of either party. A properly designed contract indicates the roles of each member of the undertaking. This clarity of purpose minimizes instances of future disagreements or disappointments.
The validity of a contract
The question of a contract’s validity is usually the bone of contention on many freelancers’ minds. the need to register as a London employer with Weaccountax as a self-employed is immense since it improves your legal position. However, the registration is not a mandate for you to have a valid contract. Your contract as an unregistered freelancer will be valid as long as all other avenues for validity according to State laws being been fulfilled.
How you can create a contract for your freelance activities
Often, a client will come to an agreement that he or she has used before. However, if they do not, you will have to come up with one. Knowing how to do this is essential.
Consider the type of agreement you need
These agreements come in various categories. Understanding the one you need for your business is an essential [art of the process. They vary according to the nature of work you are carrying out
- One off contract for a single piece of job
- Ongoing work contracts
- Retainer agreements
Specific and detailed
It is crucial that your agreement is explicit about the constituents of the project. It must also describe the things that you require from the client, your deliverables and the duration of the work. A good agreement covers critical areas such as payment terms, intellectual property, project scope, cancellation provisions, and liabilities.
Due to the fundamental nature of this document, you should consider hiring a lawyer. However, if you feel confident enough, then you could as well do it yourself.