New Ltd Company Help

[AdamP]

I have just started my own Ltd company and will be working for a German Company but working exclusively for one company in the UK. I also have the opportunity to bring 3 -4 other engineers with me and pay them through my Ltd company. The engineers will fluctuate in number. SHould I take the opportunity or is it more hassle than its worth? Would be making around £10 per day per engineer.

Cheers

[Kenny@MyAccountantFriend]

It sounds like you would effectively be employing them, as such have you taken account of employee rights such as sick pay and holiday pay to name just a few.

Alternatively they could be contractors but you would need to contracts in place and possibly be required to report there details to HMRC much like an agency has to do if they are paying you.

Overal it will depend on how you want to operate as this could be a good way for you to grow your brand if this is a long term goal for you.

[northernladuk]

You are going to have to get a piece of paper out and start scribbling some numbers. So you make £10 per day per engineer. That covers the hassle, insurances, time to recruit, time to deal with if they quit, reputational problems if your engineers don't turn up, any financial liabilities if it goes wrong, time an effort to learn what you are actually doing and work out exactly how much of that £10 is going to end up in your pocket because it won't be £10!!!

Sounds like a horrible deal.

[WordIsBond]

Sounds like a horrible deal.

Agreed. Don't forget pension AE which requires a certain level of pension contributions. EL insurance. If you want to join IPSE, it is per person. Etc.

Though perhaps the £10 / day is net of all those expenses (insurance, etc). If it is £10 day after insurance costs, payroll costs, etc, then it is just a bad deal, not a horrible one.

Look at what umbrellas charge. And they are experienced (know what they are doing and won't make expensive mistakes) and have the structure in place, so the charge is spread across multiple contractors, rather than just 3-4.

If it is £10 / day as contractors, where they become contractors with their own Ltd company, it's probably not too bad, but it depends on what kind of messes you have to clean up if they mess up or quit. But why do they need you if they are going to have their own Ltd? Basically, you become an agent, I guess....

If they are self-employed as contractors, you run the risk of getting nailed on employment rights.

I'm doing what you describe with my kids, helping them get started. So I've got a strong motive to do this that isn't financial. Even so, I'm doing better than £10 / day.