Contracting through a consultancy

**Drewster** · 5 May 2010, 16:07

Originally posted by speedo View Post

All,

Is there anyone contracting through a consultancy? For example i am working for client x, but representing consultancy y. I invoice the consultancy each month for the work carried out at client x.
I had a been working for the client on a 3 month contract however the client have not renewed - the consultancy have other jobs on the go, but not sure if they suit my background. They have also stated they will pay me 100% whilst on the bench (I know this is hard to believe), however how long can they prolong this and should I be looking for opportunities independently?

Has anyone come across this situation?

1) Yes - Now and often in the past.
2) Although that sounds good - I am not sure its great in IR35 aspects is it "Mutuality of Obligation" or somesuch.... ie they are paying you to do nothing, where is your business risk etc......
(although if IAMAE/L etc)
3) If they put you on another site "not ideally suited" -
a) Pro - Good learning experience
b) Con - Direction and control..... just like you were a permie???
4) How long can they prolong it..... Who knows (If you decide to go down that line anyway)
5) Yes - ALWAYS look for opportunities......

No - I have never come across non-permie/employees being paid to be benched "for any length of time".

I did once get paid a "retainer" not to sign up to another contract while I waited for a decision on a contract but that was a long time ago (in a very very good market) and only the equivalent of a couple of days.....

**speedo** · 6 May 2010, 07:27

Just been told that i have been lined up at another investment bank - cant complain, this is working out to be good experience.... plus im on a decent rate, however not sure of the IR35 thing...

Thanks

**Fred Bloggs** · 6 May 2010, 07:38

Good luck, get the contract reviewed and behave like a contractor on site in order to fend off an IR35 challenge.

**Brussels Slumdog** · 6 May 2010, 09:09

Originally posted by Drewster View Post

1) Yes - Now and often in the past.
2) Although that sounds good - I am not sure its great in IR35 aspects is it "Mutuality of Obligation" or somesuch.... ie they are paying you to do nothing, where is your business risk etc......
(although if IAMAE/L etc)
3) If they put you on another site "not ideally suited" -
a) Pro - Good learning experience
b) Con - Direction and control..... just like you were a permie???
4) How long can they prolong it..... Who knows (If you decide to go down that line anyway)
5) Yes - ALWAYS look for opportunities......

No - I have never come across non-permie/employees being paid to be benched "for any length of time".

I did once get paid a "retainer" not to sign up to another contract while I waited for a decision on a contract but that was a long time ago (in a very very good market) and only the equivalent of a couple of days.....

You have a contract for say 6 months and you bill them for working or not working
Do you have to prove that you were actually doing something?
I am currenly on a contract and sometimes "look out of the window" what has this to do with IR35?

**Brussels Slumdog** · 6 May 2010, 09:15

Proof of working

Originally posted by Fred Bloggs View Post

Good luck, get the contract reviewed and behave like a contractor on site in order to fend off an IR35 challenge.

Why do you have to work on site and not remotely to be IR35 Compliant?
If you are available for consultancy services advise 5 days a week.
Make sure that they ask you at least a few questions per week whilst being paid to sit on the bench.

**Drewster** · 6 May 2010, 09:52

Hector: Should I treat you as a deemed employee?
OP: No I am a businessman.
Hector: OK lets look at this 6month "Contract" you had here.....
The "Contract" says "provide consultancy services...." Thats nice........
What did you do for this period here.... between when you left ClientCo1 and started at ClientCo2.......
OP: I sat at home doing nothing.......
Hector: Thats nice.......
I meant what did you actually "do" ie What consultancy services did you supply..... because ConsultancyCo said that you were benched......
OP: No I was......
Hector: Yes????
OP: I am in the Tulip aren't I??
Hector: Bend over son!!!

@Mr Slumdog:
I am sure you can make out a great argument that your real working practises of sitting at home on your *rse being paid is "Running a proper business etc" and is different from all ConsultancyCo's other Permanent Employees who are paid while benched.....

Please Post it here cos I think I want to use it!!

**Bright Spark** · 6 May 2010, 13:41

I would never say "I was sat at home doing nothing..."

I've always put this down as "Engaged in High Level Research and Development of
New Technologies"

.

Contracting through a consultancy