Supplying other contractors

[.NetContractor]

Hi,

I am in a contract and have been advised of a requirement for 5 other developer contractors, 1 BA contractor, and 1 Testing contractor on my project by the IT manager.

I know a few people who can fulfil the developer roles and might be able to fill the remainder (or some of them) as well.

The agency that my contract is through charges 15.2% commission. I could either pass these new CVs to the agent, or direct to the client, or adopt the agency role myself and earn come extra cash. The client is a big company and will likely expect to pay agency fees anyway.

There is nothing in my contract that says I have to follow any particular route.

What is the best way to approach the client with the CVs and inform them that I would like to fulfil the agency role?

Is there anything I need to do to set myself up as an agent?

Financially speaking my own contract is direct; invoiced and paid directly by the client. My agent submits a seperate invoice for his fees for myself and about another 12 contractors seperately each month.

Cheers

[Robwg]

Just put together a presentation and make a bid for the work if you know the people - say you will guarantee it gets done.

[ChimpMaster]

If you can pull together a team of people to get the job done - great - as that will save the client the hassle of finding them. And you'll have a group that hopefully works well together. Take charge of the situation and as the previous guy said, put forward a proposal about how you will build a team to get the job done.

[TheFaQQer]

Bear in mind the impact this will have on your VAT situation if you are on FRS.

[.NetContractor]

Bear in mind the impact this will have on your VAT situation if you are on FRS.

I AM on the flat Rate scheme.


What effect will it have n my VAT situation?

The way my contract is handled, I bill the client directly and the agency bills them seperately. If I can get that arrangement then there will only be my fees going through my books.

What if I cant get that arrangement? Do I need to de-register for FR?

[r0bly0ns]

The extra money may put you over the limit for FRS registration (currently about 180k / year I think).

[XLMonkey]

I AM on the flat Rate scheme.


What effect will it have n my VAT situation?

The way my contract is handled, I bill the client directly and the agency bills them seperately. If I can get that arrangement then there will only be my fees going through my books.

What if I cant get that arrangement? Do I need to de-register for FR?

re. the limit on the FRS - it is 180k to join, but you do not have to de-register from the scheme until your turnover exceeds 250k pa.

More generally - the situation you set out sounds potentially promising, but what about the agent that put you in there? There may be no contractual constraints on you, but that doesn't mean that the agent will just ignore the fact that you are taking business away from him/her.

That's not to say don't do it, just that you need to understand the risks and ensure that you are not in danger of making an unnecessary enemy.

[Gonzo]

I AM on the flat Rate scheme.


What effect will it have n my VAT situation?

The way my contract is handled, I bill the client directly and the agency bills them seperately. If I can get that arrangement then there will only be my fees going through my books.

What if I cant get that arrangement? Do I need to de-register for FR?

If your co is paying the other contractors' invoices then on the flat rate scheme you would not be able to claim back the input VAT. You don't want to be in that position.

[XperTest]

Alternatively a much easier option would be to contact your agent (or another of the customer's preferred suppliers) and tell them you have a ready made deal for them for 5 vacancies including suitable candidates that you have spoken to the customer about and they are enthusiastic about (which you would obviously do beforehand). Tell them you want 2k for every position filled with your help. Saves you the hassle of setting up an agency and having to pay these people and gets your around the problem you would almost certainly encounter of not being an approved or preferred supplier yourself..

[DodgyAgent]

Alternatively a much easier option would be to contact your agent (or another of the customer's preferred suppliers) and tell them you have a ready made deal for them for 5 vacancies including suitable candidates that you have spoken to the customer about and they are enthusiastic about (which you would obviously do beforehand). Tell them you want 2k for every position filled with your help. Saves you the hassle of setting up an agency and having to pay these people and gets your around the problem you would almost certainly encounter of not being an approved or preferred supplier yourself..

Sounds like you are an agent.

If you want to set up an agency then why not? it is not hard, just run them through your ltd company.

If you are going to do it properly you will of course need to invest in hair Gel, a shiny suit and lots of jewelry. Then you may need to change your motor.

The one thing you need to worry about is how and when you intend to pay the contractors. If the agreement is to do it when you have been paid yourself then fine as long as the contractors understand that.