I come across a lot of coaches working in sport who have no written contract with the person/organisation paying them.
A contract between a self-employed coach and the person paying them (the client) is defined as a CONTRACT FOR SERVICES, whilst a contract of employment is defined as a CONTRACT OF SERVICE.
It is a common misconception that a contract has to be in a written format – a contract can be written, oral or implied (or a combination of all three). Where conditions have been verbally agreed, you should be aware that you may need a third party witness to corroborate what has been agreed.
Interested organisations such as the tax authorities will be able to determine the terms and conditions of a coach/client working relationship from the implied contract in the relative bookkeeping records of both parties.
A well-written contract provides the coach and client (the organisation paying the coach) with a clear definition of their working arrangement and can provide a level of protection against inspection by the tax authorities by demonstrating to them that you both have a clear understanding of the self-employment regulations.
For further advice and guidance, please contact GBSport on 01952 201657.