Freelance Fine Print: Legal Tips to Protect Your Business
Today, we’re tackling a topic that’s essential but often overwhelming: freelance contracts. Contracts can feel like a maze, but they’re crucial for protecting your work, setting clear expectations, and getting paid.
Joining me is Lucy Wheeler, a lawyer specialising in helping freelancers and small business owners navigate legal essentials. We’ll cover must-have clauses, when to consult a lawyer, how to protect your intellectual property, and what to do if a client doesn’t pay.
You can listen (28 min) and subscribe here:
Now available on: Apple Podcasts | Spotify | Podlink
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Here are some key takeaways from the discussion:
1. Your Contract is Your Safety Net
Many freelancers rely on email exchanges or verbal agreements, but this leaves you vulnerable if things go south. A solid contract protects your business, sets clear expectations, and avoids misunderstandings. Start with the basics: What are you delivering? How will you deliver it? What are the timelines? But don’t stop there: define what you won’t be doing to avoid scope creep. For example, if you’re a social media manager, will you provide ad copy, or is that on the client? Clarity now saves headaches later.
"You need to tell people what you’re going to deliver—and what you’re not. That’s just as important."
2. Payment Terms Are Non-Negotiable
Getting paid on time is crucial for keeping your business afloat. Your contract should specify when and how you get paid, whether it’s upfront, in instalments, or after project completion. If your work spans months, consider milestone payments to ensure you’re not left chasing invoices. You can also include late payment fees to encourage timely payments.
"A contract is just an exchange—someone is paying for a service, and you’re providing it. Protect your right to get paid."
3. Set Contingencies for the Unexpected
Life happens. People get sick, projects stall, and priorities shift. Your contract should address what happens if you or your client need to reschedule, pause, or cancel. How much notice is required? Is there a refund policy? Without these clauses, you may find yourself losing money or overcommitting.
"You want to write a contract thinking everything will go smoothly—but also prepare for when it doesn’t."
4. Freelancer or Big Business—Get a Business Bank Account
Mixing personal and business finances is a disaster waiting to happen. A business account makes tax time easier and keeps your finances organised. It’s also a good idea to separate your savings—having a rainy-day fund for tax bills, unexpected expenses, or quiet months gives you financial stability.
"You wouldn’t expect an energy company to just let you off a bill. Your business should be treated the same."
5. DIY Legal? Think Twice
Yes, you can Google a contract template, but will it protect you? Legal mistakes often go unnoticed until something goes wrong. Consulting a lawyer or investing in a proper contract can save you thousands in disputes. The good news? There are affordable legal resources out there, from template shops to subscription-based legal services.
"You don’t know what you don’t know—until something goes wrong. A good contract is an investment, not an expense."
6. Intellectual Property: Your Work, Your Rights
From branding to content creation, your intellectual property (IP) needs protection. If you don’t register your business name as a trademark, someone else could—leaving you stuck rebranding. Your contract should also clarify who owns the rights to the work you create. Clients may assume they own everything, but if you retain rights, you can repurpose or resell your work.
"As the creator, you own the IP. Protect it before someone else does."
7. What to Do When Clients Don’t Pay
No one likes chasing invoices, but it’s part of running a business. If a client doesn’t pay, follow up with a formal reminder and highlight any late fees in your contract. If they still don’t pay, small claims court is an option—freelancers can claim up to £10,000 in unpaid fees. The best strategy? Get paid before starting work.
"One of the biggest shifts freelancers can make is getting paid upfront. It eliminates most payment issues before they start."
8. Contracts Give You Power—Not Restrictions
Some freelancers fear contracts will make them seem too formal or inflexible. In reality, a contract gives you control over your business. It allows you to set boundaries, negotiate fairly, and protect yourself when things don’t go as planned. Clients will respect a freelancer who operates professionally—it’s a sign of confidence, not rigidity.
"A contract doesn’t trap you—it empowers you. It gives you flexibility, structure, and peace of mind."
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