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Status when being sub-contracted out by client

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    Status when being sub-contracted out by client

    This is a new situation to me, but I'm sure not uncommon:

    I'm currently contracting direct with Client A - a digital agency. The contract's almost up, and they're trying to line up further work with another of their clients (Client B). This will be a completely different project, and would require me to be on-site at Client B's offices. From my point of view, my contract is with Client A and they pay my invoices. But from Client B's point of view, I work for Client A. The project will be agile software dev.

    An added detail is that Client A want me to interview at Client B in order to be accepted for the contract.

    Am I a disguised employee of Client A?
    Or is My Ltd a sub-contractor of services to Client B, via A?

    Bonus question: Client A have offered to run the contract via an agency (at their cost), if that helps the relationship.

    How would you handle this situation? (Let assume the MyLtd -> Client A contract is itself outside IR35, with a statement of work for the specific project).

    #2
    Originally posted by mosaic View Post
    This is a new situation to me, but I'm sure not uncommon:

    I'm currently contracting direct with Client A - a digital agency. The contract's almost up, and they're trying to line up further work with another of their clients (Client B). This will be a completely different project, and would require me to be on-site at Client B's offices. From my point of view, my contract is with Client A and they pay my invoices. But from Client B's point of view, I work for Client A. The project will be agile software dev.

    An added detail is that Client A want me to interview at Client B in order to be accepted for the contract.

    Am I a disguised employee of Client A?
    Or is My Ltd a sub-contractor of services to Client B, via A?

    Bonus question: Client A have offered to run the contract via an agency (at their cost), if that helps the relationship.

    How would you handle this situation? (Let assume the MyLtd -> Client A contract is itself outside IR35, with a statement of work for the specific project).
    Issue a quote and agree a statement of work. Repeat business is good.

    Comment


      #3
      Originally posted by Old Greg View Post
      Issue a quote and agree a statement of work. Repeat business is good.
      True. But its not a fixed piece of work I can quote against. Will be more likely a 6 month contract to deliver consultancy services on Project X.

      Comment


        #4
        Is Client A asking you to pretend that you are an employee or is everything upfront that you are a subcontractor?

        In general, it will all just come down to working practices, not whether or not you are subcontracted. But it certainly won't help your IR35 position if they are going to present you as an employee. I'd draw a line in the sand on that one -- if you are going to do that, you have to pay me enough to compensate me for being inside IR35.

        Comment


          #5
          Originally posted by WordIsBond View Post
          Is Client A asking you to pretend that you are an employee or is everything upfront that you are a subcontractor?

          In general, it will all just come down to working practices, not whether or not you are subcontracted. But it certainly won't help your IR35 position if they are going to present you as an employee. I'd draw a line in the sand on that one -- if you are going to do that, you have to pay me enough to compensate me for being inside IR35.
          Yes, they expect me to present as working for Client A, so not upfront about being a subcontractor. Seems like a charade that could be difficult to maintain. How do you assert yourself against attempts at SDC, if you are considered an employee?

          I've considered running it inside IR35 and raising the rate, though feels complicated having back-to-back engagements with the same client, one in and one outside IR35?

          Comment


            #6
            Up your rate and run it via an umbrella, and you're a freelance consultant, brought in at great expense by client A, to service client B

            Comment


              #7
              Originally posted by BR14 View Post
              Up your rate and run it via an umbrella, and you're a freelance consultant, brought in at great expense by client A, to service client B
              Cheers, that sounds like good advice.

              Comment


                #8
                Originally posted by mosaic View Post
                Cheers, that sounds like good advice.
                Up your rate on the basis that it will be Inside IR35 and then run it outside IR35 via your Ltd. Get insurance.

                Comment

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