Interim Management Contract Template UK | Interim Manager Agreement
Bringing in an interim manager without a robust written agreement leaves both parties exposed to disputes over authority, deliverables, and tax status. An interim management contract clearly defines the scope of the engagement, the interim manager's decision-making powers, fee structures, and the critical question of IR35 status under Chapter 10 of the Income Tax (Earnings and Pensions) Act 2003. Without this clarity, businesses risk HMRC challenges and unexpected tax liabilities, while interim managers face delayed payments with no legal remedy. The agreement should also incorporate protections under the Late Payment of Commercial Debts Act 1998 to ensure timely invoicing and statutory interest on overdue sums. Whether you are an interim finance director, operations lead, or turnaround specialist, a professionally structured contract protects both sides from day one. Generate your tailored interim management contract now.
Generate your Consulting Agreement free →Key clauses in a Consulting Agreement
IR35 Status and Substitution
This clause establishes the working relationship between the hiring organisation and the interim manager's personal service company, addressing the key IR35 indicators under Chapter 10 of ITEPA 2003, including the genuine right of substitution. A clearly drafted substitution right and the absence of mutuality of obligation are critical factors HMRC considers when determining whether the engagement falls inside or outside IR35.
Scope of Authority and Deliverables
This clause precisely defines the interim manager's delegated authority, reporting lines, and specific deliverables or outcomes expected during the engagement period. Because interim managers frequently hold temporary executive authority, ambiguity here can create disputes over decisions made and liabilities incurred, making this clause fundamental to protecting both the business and the individual under general UK contract law principles.
Fees, Invoicing, and Late Payment
This clause sets out the daily or monthly rate, invoicing schedule, payment terms, and the statutory right to claim interest and compensation on late payments under the Late Payment of Commercial Debts Act 1998. Expressly incorporating this Act means the interim manager can automatically claim 8% over the Bank of England base rate on overdue invoices without needing a separate contractual provision to enforce that right.
Generate your Consulting Agreement in 2 minutes
AI-powered. Jurisdiction-aware. No account required for your first contract.
Generate free →Frequently asked questions
Does an interim management contract automatically fall outside IR35?
No, the contract wording alone does not determine IR35 status; HMRC assesses the actual working practices alongside the written agreement under Chapter 10 of ITEPA 2003. Key indicators such as genuine substitution rights, the absence of mutuality of obligation, and lack of control by the client are all scrutinised. Since April 2021, for medium and large private sector clients, the responsibility for making the IR35 determination sits with the hiring organisation, not the interim manager.
How much notice should an interim management contract include for early termination?
There is no statutory minimum notice period for genuinely self-employed interim managers, so the notice period is entirely a matter of commercial negotiation between the parties. Industry practice typically ranges from one to four weeks depending on the seniority of the role and the complexity of handover requirements. It is advisable to include provisions for payment in lieu of notice to give both parties certainty if the engagement ends abruptly.
Should an interim management contract include a post-engagement non-compete clause?
Post-termination restrictive covenants, including non-compete clauses, are enforceable in England and Wales only if they go no further than is reasonably necessary to protect a legitimate business interest, as established under common law principles confirmed in cases such as Tillman v Egon Zehnder Ltd [2019] UKSC 32. For interim managers, courts apply particular scrutiny because the engagement is temporary and the individual needs to return to the open market promptly. Restrictions should be carefully limited in both geographic scope and duration to maximise their enforceability.
The information on this page is for general informational purposes only and does not constitute legal advice. Contracto generates AI-assisted contract templates — they are not a substitute for advice from a qualified solicitor. For high-value or complex engagements, always seek independent legal review.