How to choose the right solicitor for your contracting business

As a professional contractor or small business owner, you may need legal guidance at some point. Typically, solicitors are able to offer advice on a wide range of issues, from checking contract wording to resolving disputes between you and clients, including late payment problems.

Of course, there is plenty of business law information available for free online, but there will inevitably be times when you need to seek professional advice.

A solicitor can take care of important paperwork and help save you time, and can also make sure you don’t make the kind of mistakes that could prove costly to your business and/or harm your professional reputation.

Why you might need a solicitor as a contractor

Most contractors do not need regular legal support, but there are certain situations where professional legal advice becomes important.

Here are some typical examples:

• If you’re asked to sign a new client or agency contract.
• You need to deal with a sudden contract termination.
• You’ve exhausted your efforts to chase late payments.
• You need to resolve a disagreement with a client over deliverables or intellectual property.

Contractors may also need legal advice when negotiating restrictive covenants, settlement agreements, or formal disputes that cannot be resolved informally.

In these situations, it is prudent to consult a solicitor rather than relying solely on template advice or online resources.

What else can a solicitor do for you?

Some more examples of the type of work a solicitor can do for your company include:

• Draw up contracts between you and a client (such as a consultancy agreement if you’re providing services directly to a client).
• Checking provisional contracts created by a third party (such as a recruiter or agency).
• Draw up contracts of employment for staff you take on in future.
• Help with drawing up formal arrangements, such as partnership or shareholder agreements.
• Advise on lease agreements for premises or equipment.
• Ensure you comply with the latest regulations and trading laws relevant to your industry or sector.
• Represent your interests in negotiations with clients, local authorities and other organisations.
• Help to recover overdue payments by sending out formal letters.
• Advise you on the branding of your products or services so you don’t infringe anyone else’s intellectual property rights or copyright.
• Provide assistance and advice on trading abroad and dealing with international clients or companies regarding international law, export licences and partnerships.

Legal advice vs accountancy and IR35 support

Contractors often work with accountants and may also use specialist IR35 contract review services, but neither replaces legal advice.

An accountant focuses on tax compliance and financial reporting, while IR35 reviews assess employment status risk.

A solicitor’s role is different: they advise on enforceability, liability, contractual rights and dispute resolution.

Where a disagreement becomes formal or a contract contains legally significant clauses, a solicitor is usually the appropriate professional to consult.

How much do solicitors charge?

It depends on what he or she does for you and how long it all takes. You can expect to pay more for specialist advice, or if the matter is complex and involves more than a single solicitor working on your behalf.

On the other hand, drafting standard contracts or issuing a letter for you is unlikely to cost much.

In any case, you should always be provided with an estimated cost for any work well in advance.

This should include details of hourly rates, a breakdown of the estimated cost and any additional charges.

This is actually a UK Law Society requirement; if you don’t receive an estimate, be sure to ask for one or look elsewhere.

As with any other service, the old adage of shopping around also applies when looking for a solicitor.

When you may not need a solicitor

Not every issue requires formal legal involvement. Many routine matters can often be handled commercially or with professional advice from other sources.

For example, standard agency contracts that have already been reviewed, minor administrative disputes, or straightforward contract renewals with unchanged terms may not justify legal fees.

Knowing when legal advice is unnecessary can be just as important as knowing when it is essential.

So, how do you find a solicitor that’s right for your size and type of business?

As with many other things, the best way to find a solicitor is to ask people you know for recommendations – including other professionals.

If you’re contracting, for example, your accountant is likely to work with one or more legal firms that are familiar with common contractor and SME-related issues.

The Law Society provides a list of SME solicitors across the UK, most of whom offer a free initial consultation.

If you’re looking for help with IR35-related issues, you should target one of the firms that provide specialist IR35 contract review services (although not all are law firms).

Unless you have a personal recommendation (always helpful), get in touch with several solicitors before choosing one.

Ask about their hourly rates and any specialist services they provide on top of general legal help that may help your company. Do they have specific experience working with contractors or consultants?

A good solicitor can resolve things rapidly and take the stress out of a dispute so you can concentrate on your contract work.