Working for 2 Clients - 2 contracts at the same time. Any issues?

**WordIsBond** · 13 October 2016, 14:52

The problems:

1. It will make it very hard for HMRC to argue you are a disguised employee when you have this kind of freedom to bounce between the clients. So you will be faced with the difficult decision of whether to keep your IPSE membership / QDOS insurance for IR35, despite the minimal risk, or whether you want to save the money.

2. You have to fight off jealous CUK guys who want a piece of this action because it's better than what they have.

3. You have to figure out a way to cut out the agencies and do this direct, increasing your profit.

4. You have to figure out how to get similar deals with other clients.

5. You have to figure out, if you do get enough similar deals with other clients, who you will hire to help keep this thing rolling, and how much of a cut you are going to take before paying them.

Seriously, why would this be a problem? It's only a problem if the clients aren't willing to be flexible enough to accommodate it, and as you've said, they are. I'd try to be sure there's enough flexibility in the contracts so if they have a change of management or change of heart you have at least contractual protection. That won't save the situation if they really need to take your flexibility or just want to get rid of you, but it can at least buy you some time or some negotiating room.

Your business has two customers. It's only a problem if it isn't a business, if you are really just a disguised employee, or if they aren't flexible enough in their needs for your current staffing (you) to be able to meet those needs.

But I was sort of serious about #3 above. If you can get these kinds of deals with two clients at once, if there is that much flexibility running around in your sector, then you might be able to figure out a way to go direct. Maybe not now, but when you leave a client, tell them, "You know, if you want me back some time, you can call me direct and we can both do a little better out of it if an agent isn't taking a cut."

**northernladuk** · 13 October 2016, 15:04

Originally posted by WordIsBond View Post

The problems:

1. It will make it very hard for HMRC to argue you are a disguised employee when you have this kind of freedom to bounce between the clients. So you will be faced with the difficult decision of whether to keep your IPSE membership / QDOS insurance for IR35, despite the minimal risk, or whether you want to save the money

Don't agree with this at all. IR35 is on a contract by contract basis. The old BET's distinguished this set up but are now defunct. It's excellent defence and yes you will win but it won't mean you won't get investigated which could cost you money and time to fight. Keeping IR35 insurance, particularly at the price is a no brainer. The IPSE+ provides many other benefits besides the IR35 insurance as well so you will be losing those if you decide to drop it. With such a complex arrangements I would have said one of the risks is one of the parties not fulfilling their obligations and giving you the time to go work on the other. If that is the case you can call back on the business interruption offer that comes with the IPSE+ which could cover up to 2k of lost revenue so IMO you should be keeping IPSE+ just to cover this new risk.

**WordIsBond** · 13 October 2016, 15:10

When I've said "seriously" after the numbered list and said later I was "sort of serious" about #3, why would you take #1 seriously?

Just for the record, I have four concurrent contracts running right now on which I'm personally working, I'm probably 100% IR35 proof except for one small contract that I'm operating within IR35, and I'm keeping my IPSE+ membership. Why would I not?

**northernladuk** · 13 October 2016, 15:16

Originally posted by WordIsBond View Post

When I've said "seriously" after the numbered list and said later I was "sort of serious" about #3, why would you take #1 seriously?

Hmm thread reading failure on my part it seems. Gonna leave it in though as I may not be the only person that misreads.

**freelancelife** · 13 October 2016, 15:33

Thank you for the feedback. Yes I think as a ltd company the more clients the better. Do I need to tell the new agency that I will be taking on consultancy work for old clients?
Currently my old agency is aware of the situation but not the new agency.

I suspect the only risk I have is that I have not seen the full contract for my next client yet. I have just accepted the initial offer from the agency based on clearance. This just stated the working hours and the daily rate. I don't have a fine print contract yet.

The only problem I think I may hit will be

1) If the new contract has a clause stating I cannot work for any other agencies. I suspect this is unlikely since I'm a ltd company. Do any agencies do this?
2) If my existing security clearance is moved from the old client to the new client .The old client may not allow me to work without SC clearance. I have no idea if I can have clearance for two companies at the same time...I guess I may not require the clearance if I am just training/consulting staff and not logging on the systems.

**NotAllThere** · 13 October 2016, 15:44

I've been working for three concurrent clients for several years. The biggest problem is keeping them all happy. Sometimes you end up working very long days. However, I'm able to work remotely for them all, making it much easier.

The clients do know I work for others, and they are understanding about that.

**freelancelife** · 13 October 2016, 15:46

That's good to hear. My first client allows me to work remotely also so it makes sense to continue a relationship with them after securing my next contract. It also adds a safety net.

**WordIsBond** · 14 October 2016, 13:17

Originally posted by northernladuk View Post

Hmm thread reading failure on my part it seems. Gonna leave it in though as I may not be the only person that misreads.

Fair enough, it wasn't as "in your face" as some of my sarcasm. I can see why you missed it.

Working for 2 Clients - 2 contracts at the same time. Any issues?