Sub-contracting in the world of IR35 and blankets

[ryeyeman]

TLDR: I want to charge a margin on an engagement I plan to sub out, that the client tell me is ISIR35. Is there a way I can act as an intermediary and charge a margin?

Situation: I run my own LTD company (sole employee) and I am currently engaged on an OSIR35 engagement. A wholly separate client has asked me to engage with them, however, I will need to sub-contract this out in order to fulfil it.

Complication: The client has told me that the engagement on offer is ISIR35 (and based on the terms in the proposed contract, I would agree) and there is no clause allowing substitution. It's worth clarifying that I would wholly be subbing this out beyond high-level client engagement, validating deliverables etc.

Question: Is it possible for me to be an intermediary in a Client -> ISIR35 resource engagement? Effectively, can I charge a margin? If the Client were offering a friendly OSIR35 engagement then this wouldn't be an issue - it would be simple.

Resolution: I don't think, on the assumption the engagement remains ISIR35, that is it possible for me to take a margin (recruitment agencies do this, but I have a feeling that's more like magic). A finder's fee is an option I guess, but not how I want to run my business. I see my three options as: 1) work with the client to clearly allow substitution, 2) take the finder's fee approach or 3) do not engage. Am I right?

I'm sure there are stupid questions and assumptions above, but I've always been a believer that you've got to start from somewhere. If the above isn't clear, please ask clarifying questions.

[eek]

No

[northernladuk]

TLDR: I want to charge a margin on an engagement I plan to sub out, that the client tell me is ISIR35. Is there a way I can act as an intermediary and charge a margin?

Situation: I run my own LTD company (sole employee) and I am currently engaged on an OSIR35 engagement. A wholly separate client has asked me to engage with them, however, I will need to sub-contract this out in order to fulfil it.

Complication: The client has told me that the engagement on offer is ISIR35 (and based on the terms in the proposed contract, I would agree) and there is no clause allowing substitution. It's worth clarifying that I would wholly be subbing this out beyond high-level client engagement, validating deliverables etc.

Question: Is it possible for me to be an intermediary in a Client -> ISIR35 resource engagement? Effectively, can I charge a margin? If the Client were offering a friendly OSIR35 engagement then this wouldn't be an issue - it would be simple.

Resolution: I don't think, on the assumption the engagement remains ISIR35, that is it possible for me to take a margin (recruitment agencies do this, but I have a feeling that's more like magic). A finder's fee is an option I guess, but not how I want to run my business. I see my three options as: 1) work with the client to clearly allow substitution, 2) take the finder's fee approach or 3) do not engage. Am I right?

I'm sure there are stupid questions and assumptions above, but I've always been a believer that you've got to start from somewhere. If the above isn't clear, please ask clarifying questions.

It's not really a stupid question but it's very easy to work out. You've completely forgotten to factor in how you get paid and what the money is you receive. Forget the business possibilities. Focus on how your inside engagement works and how you get paid and that would answer your question before you needed to ask. You are getting mixed up with outside gigs. Forget all that. You are effectively an employee now. Understand how an inside gig gets paid and you'd have your answer.