Setting up as an agent on a preferred supplier list

**TestMangler** · 29 November 2011, 10:16

Originally posted by Wanderer View Post

Why? Just because of the VAT FRS? That doesn't sound right.

If you start a new company then you are going to be hit for a grand or two in running costs over the year. On the other hand, having subcontractors working for the company you use for contracting is going to make you look a lot less like a permietractor from an IR35 point of view too.

If you use the existing company you can use retained cash (like for VAT and CT) to free up your cash flow to pay contractors instead of having to factor invoices. Bad cash flow kills small businesses, that's a fact.

WHS. Setting up another company is pointless.

**scooby** · 2 December 2011, 12:50

Originally posted by northernladuk View Post

Do you have any idea the criteria for becoming a preferred supplier to your client is?

This is always a good question!! I found out a month ago after a catch up call with the head of procurement from an old client that I was already on it.

I didnt even know, but apparently it was as simple as doing a good job last time, and keeping relationships in place.

Others, it can be a lot harder!!