Commision on a Contract

[Geekman]

Thanks

Thanks a bunch for all the advices. To answer the main questions:
1> Yes the person is an employee of my to-be-client (if I take the contract)
2> This arrangement is completely "off the records" and a private arrangement between me and the person hence showing the expense as "commission" doesn't look possible.

Overall, from all your responses, clearly it is illegal and dangerous hence will try and do it legally or not take the contract. Thanks again for your advices, were indeed helpful!!

[fckvwls]

Tenuously related question but how close to the wind are you sailing if you are in a contract at a client and said client has asked you to build a team. In the process of doing that you setup a ltd co to act as an agency and bring on people through that company, pocketing a margin off everyone you push through that route.

[northernladuk]

Tenuously related question but how close to the wind are you sailing if you are in a contract at a client and said client has asked you to build a team. In the process of doing that you setup a ltd co to act as an agency and bring on people through that company, pocketing a margin off everyone you push through that route.

Well for a start you are probably not on the PSL so that won't work. If you can get the right people on for the price they want to pay I wouldn't have thought it to be out of the question but if they are paying for £350 people and you do the typical agency thing and bring £200 people in you are up tulip creek as well. You also have to look after these guys and are responsible for them as well so usually more effort that it is worth as well.

[TheFaQQer]

Tenuously related question but how close to the wind are you sailing if you are in a contract at a client and said client has asked you to build a team. In the process of doing that you setup a ltd co to act as an agency and bring on people through that company, pocketing a margin off everyone you push through that route.

If the people you are bringing in are known by you, then I don't see this as any difference from getting them to apply through an agency and someone else taking the commission when you hire them.

If you are hiring people that you don't know anything about, then I'd be more concerned with the hassle of dealing with them, paying them before you get paid / factoring invoices, running a new company, getting that company onto the books with the client, and making sure that they were any good than it would be worth.

[BlasterBates]

Tenuously related question but how close to the wind are you sailing if you are in a contract at a client and said client has asked you to build a team. In the process of doing that you setup a ltd co to act as an agency and bring on people through that company, pocketing a margin off everyone you push through that route.

I don´t see any problem with this at all. It is perfectly legal. It would be polite obviously to inform the client and he may take execption if he wasn´t informed. If the client didn´t want you to take commission in my view he´d have to inform you and amend your contract

You are in a business to business relationship with the client. If the client asked a consultant from KPMG to build a team KPMG would definitely take commission and they wouldn´t talk to the client about what that commission was, unless there was a contractual clause stipulating the margin.

[moggy]

Sounds to me that this guy sees himself a a bit of a part time agent.

Tell him if its commission he wants then he should be billing the client and you will bill him. My bet is the client have no idea what he is up to.

[psychocandy]

Dodgy dodgy dodgy...

Theres doing someone a favour and then you taking them out for a few beers and then theres fraudulantly taking 20%.

Imagine if client finds out? Cant seem them being happy that you got the gig only because one of their employees was being bribed with 20%. I imagine you;d be be out on your arse at best, in court at worst.

[Wanderer]

Tell him if its commission he wants then he should be billing the client and you will bill him. My bet is the client have no idea what he is up to.

Most clients I've worked with have a clear policy about NOT taking money from suppliers. Indeed, I've worked in places where the client brought criminal charges against employees who took a "commission" in this way.

As others have said, the going rate for commission is a pint of beer.

[northernladuk]

Most clients I've worked with have a clear policy about NOT taking money from suppliers. Indeed, I've worked in places where the client brought criminal charges against employees who took a "commission" in this way.

As others have said, the going rate for commission is a pint of beer.

Or a lager shandy/gin & tonic if it is a southern gig.

[tpsman]

https://www.gov.uk/anti-bribery-policy