The Professional Contractors Group (PCG) and the Recruitment and Employment Confederation (REC) have agreed a contract template for REC members using limited company contractors.

PCG chief executive John Thomas said: “This agreement will be beneficial to agencies, clients and freelance contractors operating outside IR35. Unlike temporary workers, independent contractors operate as businesses and do not seek the protections accorded under employment law, and their contractual arrangements need to reflect this.”

PCG approval of the contract, which was vetted by advisers, is subject to it not being modified in any way. The contract can be downloaded form the PCG website.