Taking on Associates

[VinnyB]

I have been trading in the 'normal' Ltd Co way with my company supplying my services as Consultant to the end client. No Agency is involved in this relationship.

I have been asked if I know of any PMs for a new contract role the client has. Has anyone any experience of bringing in 'associates' into an existing client relationship. I would have a separate contract drawn up for this assignment. Perhaps adding an admin fee, not unlike a normal agency but at a more reasonable amount.

The other alternative for the client is to source a PM through their incumbent agency, who will of course expect a higher mark up on the contractors rate.

My own arrangement will continue with the client as now.

I appreciate there are a number of factors involved in this but I could do with some feedback/guidance.

[Crossroads]

I have been trading in the 'normal' Ltd Co way with my company supplying my services as Consultant to the end client. No Agency is involved in this relationship.

I have been asked if I know of any PMs for a new contract role the client has. Has anyone any experience of bringing in 'associates' into an existing client relationship. I would have a separate contract drawn up for this assignment. Perhaps adding an admin fee, not unlike a normal agency but at a more reasonable amount.

The other alternative for the client is to source a PM through their incumbent agency, who will of course expect a higher mark up on the contractors rate.

My own arrangement will continue with the client as now.

I appreciate there are a number of factors involved in this but I could do with some feedback/guidance.

Unless you know and trust the PM very well, and are confident he can do an excellent job then tread carefully.

Also think more seriously about your markup...to make it worth your while you will need to charge more than a typical agency.

What do you think is a reasonable margin?

[TheFaQQer]

They could come in through your company, but if you are on FRS then it will cost you, since your input VAT will be more than you save by being on flat rate. Also, if this is a longer running project, then taking someone on through your own company might push you over the threshold for being able to use FRS anyway.

If you go through the agency, then see if they do a reduction on the fees / kickback scheme to you since you are doing the introduction and they are doing even less work than usual.