Client Contracts — Why You Need One and What to Include

The Accounted Business Team·2 March 2026·9 min read

Let's be honest — when you're starting out as a freelancer or sole trader, writing up a formal contract for every client feels like overkill. You've had a friendly chat, agreed on the work, shaken hands (or exchanged a few emails), and off you go. What could possibly go wrong?

Quite a lot, as it turns out. Scope creep, late payments, disputed deliverables, clients who vanish without paying — these aren't rare occurrences. They're practically a rite of passage for anyone who works for themselves. And in almost every case, a clear written contract would have prevented the problem or at least made resolving it far simpler.

A contract doesn't have to be a 30-page document drafted by an expensive solicitor. It just needs to set out the key terms of your working relationship clearly enough that both sides know where they stand. Here's how to put one together.

Why You Need a Client Contract

A contract serves several important purposes, and none of them require you to be adversarial or distrustful. Think of it as a foundation for a good working relationship, not a weapon for a bad one.

Legal Protection

A written contract is a legally binding agreement. If a dispute arises — over payment, scope of work, deadlines, or quality — a contract gives you a clear reference point. Without one, you're relying on verbal agreements and email threads, which are harder to enforce and open to interpretation.

Under English and Welsh contract law, a contract can technically be verbal or even implied by conduct. But proving the terms of a verbal agreement in court is notoriously difficult. A written contract removes that ambiguity.

Professional Credibility

Presenting a client with a clear, professional contract signals that you take your business seriously. It sets the tone for the relationship and demonstrates that you're organised, experienced, and trustworthy. Most serious clients will expect one — and if a prospective client pushes back hard against having any written agreement at all, that's often a red flag in itself.

Clarity and Expectations

Perhaps the most practical benefit of a contract is that it forces both you and your client to be explicit about what's been agreed. What exactly are you delivering? By when? For how much? What happens if the client wants changes? Getting these details nailed down at the start prevents the "but I thought you were going to..." conversations later on.

What to Include in Your Contract

Every contract will be different depending on your industry, the nature of the work, and the client. But there are several core elements that should appear in virtually every freelancer or sole trader contract.

1. Parties and Scope of Work

Identify who the contract is between — your business name and the client's name or company name. Then describe the work you'll be doing in as much detail as is practical.

Be specific. "Design services" is vague. "Design of a five-page responsive website including homepage, about page, services page, blog page, and contact page, based on wireframes to be approved by [date]" is clear. The more precisely you define the scope, the easier it is to identify when a client is asking for work outside of it.

2. Deliverables and Timelines

What will the client receive, and when? List your deliverables explicitly and include realistic deadlines. If the project has multiple phases or milestones, lay those out too.

It's also wise to include any dependencies — things the client needs to provide for you to do your work. For example: "Final copy for all pages to be provided by [date]. Delays in providing content may result in corresponding delays to the delivery schedule."

3. Pricing and Payment Terms

This is where a lot of disputes arise, so be crystal clear. Your contract should cover:

Total price or rate — whether it's a fixed project fee, an hourly rate, or a day rate
What's included — and crucially, what isn't
Payment schedule — when payments are due (e.g., 50% upfront, 50% on completion, or 30 days from invoice)
Payment method — bank transfer, PayPal, etc.
Late payment terms — what happens if the client doesn't pay on time

On that last point, the Late Payment of Commercial Debts (Interest) Act 1998 gives you the statutory right to charge interest on late commercial payments (currently 8% plus the Bank of England base rate) and to claim a fixed sum for recovery costs. You can reference this in your contract, or set out your own late payment terms, as long as they're reasonable. For more on chasing overdue payments, our guide on handling late-paying clients is worth a read.

4. Revisions and Changes

How many rounds of revisions are included? What happens if the client wants to change the scope of work after you've started? This is where scope creep lives, and a good contract nips it in the bud.

A common approach is to include a set number of revision rounds (e.g., two rounds of revisions included in the quoted price), with additional revisions charged at your standard rate. For changes to the scope of work, specify that these will be subject to a change request process and may affect the timeline and cost.

5. Intellectual Property

Who owns the work once it's done? This varies by industry and by agreement, but you need to be clear about it. Common approaches include:

Full transfer — all intellectual property rights transfer to the client upon final payment.
Licence — you retain ownership but grant the client a licence to use the work.
Partial transfer — some elements transfer (e.g., the final design) while others don't (e.g., underlying templates or code libraries you use across multiple projects).

Under UK law, the default position for commissioned work is that the creator typically retains copyright unless there's an agreement to the contrary. So if you want to transfer IP to your client (or if they expect it), you need to state this explicitly.

6. Confidentiality

If you'll have access to sensitive business information, a confidentiality clause protects both parties. This doesn't need to be complex — a simple statement that both parties agree to keep confidential information private and not to disclose it to third parties without permission is usually sufficient.

If the client is going to share personal data with you (customer lists, employee details, etc.), you'll also need to consider your GDPR obligations and potentially include a data processing clause or separate data processing agreement.

7. Cancellation and Termination

What happens if either party wants to end the contract early? Specify:

Notice period — how much notice is required (e.g., 14 days' written notice)
Payment for work done — what the client owes for work completed up to the point of cancellation
Kill fee — some freelancers include a cancellation fee if the client terminates without cause after work has begun

Without a termination clause, ending a contract early can get messy and contentious. Having clear terms protects both sides.

8. Liability and Indemnity

Consider whether to include a limitation of liability clause. This caps the amount you could be held liable for if something goes wrong. A common approach is to limit your liability to the total fees paid under the contract.

Depending on your profession, you might also want to look into professional indemnity insurance, which covers you against claims arising from your professional advice or services.

9. Dispute Resolution

If a disagreement arises, how will it be resolved? Options include:

Informal negotiation — the parties will attempt to resolve disputes amicably in the first instance
Mediation — a neutral third party helps facilitate a resolution
Arbitration — a binding decision by an arbitrator
Court proceedings — as a last resort

Specifying the governing law (usually the laws of England and Wales, or Scotland, or Northern Ireland, depending on where you're based) and jurisdiction is also important, especially if you work with clients in other countries.

How to Present Your Contract

A contract doesn't need to look like a legal textbook. Here are some practical tips.

Keep the Language Clear

Use plain English wherever possible. Legalese doesn't make a contract more enforceable — it just makes it harder for both parties to understand. If your client can't understand the contract, it's not serving its purpose.

Use a Consistent Format

Number your clauses, use clear headings, and make the document easy to navigate. If your client has a question about a specific term, they should be able to find it quickly.

Get It Signed

A contract is much stronger when both parties have signed it. Electronic signatures are legally valid in the UK under the Electronic Communications Act 2000 and the eIDAS Regulation (as retained in UK law). Tools like DocuSign, HelloSign, or even a simple "I agree" email reply can work, though a proper e-signature tool provides better evidence.

Send It Early

Don't spring a contract on a client after you've already started work. Send it as part of your onboarding process, ideally before any work begins. This sets expectations from the outset and gives both parties a chance to discuss and agree on terms. If you'd like to improve your overall client onboarding process, consider setting clear boundaries from the start.

Templates and Resources

You don't need to draft a contract from scratch. There are several good resources available:

Government templates — GOV.UK has some basic contract templates for certain industries
Industry bodies — many professional associations provide template contracts for their members
Legal template services — companies like Docue, Rocket Lawyer, and LawBite offer customisable contract templates at reasonable prices
Solicitors — for complex or high-value work, getting a solicitor to draft or review a bespoke contract is a worthwhile investment

Whichever route you take, make sure you customise the contract to reflect your specific business and the specific engagement. A generic, unmodified template may miss important details.

What About Existing Clients?

If you've been working with clients without contracts, it's never too late to introduce one. You might feel awkward about it, but most clients will appreciate the professionalism. Frame it positively: "I'm putting some clearer processes in place for my business, including written agreements for all client work. Here's a simple contract that covers what we've discussed."

Keeping track of your contracts, invoices, and client relationships is much easier when your financial admin is well organised. Penny, the AI assistant in Accounted, can help ensure your invoicing stays on track so you can focus on the work itself.

The Bottom Line

A client contract protects you, protects your client, and sets the foundation for a smooth working relationship. It doesn't need to be complicated or confrontational — it just needs to be clear. Take the time to put one together, and you'll save yourself a great deal of stress down the line.

Accounted helps UK sole traders stay on top of their bookkeeping and tax. Start your free 30-day trial at getaccounted.co.uk

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