Setting up as an agent on a preferred supplier list

[gamble1234]

All,

Im currently in a contract at the company i'm providing services to and currently they have a lack of good skilled staff. I have introduced a number of contractors to them. I am now looking to setup as a supplier. Has anyone done this before? what are the pitfalls? is it worth it? can there be any issues that affect my company?

Thanks
gamble

[malvolio]

All,

Im currently in a contract at the company i'm providing services to and currently they have a lack of good skilled staff. I have introduced a number of contractors to them. I am now looking to setup as a supplier. Has anyone done this before? what are the pitfalls? is it worth it? can there be any issues that affect my company?

Thanks
gamble

Brilliant move if you can do it. Just be aware of the financials; for example, work out how much permanent dead money you need in your bank account to support paying 10 contractors £400 a day in five working days when you get the money back after 60. With lost interest on capital it's around £250k...

[gamble1234]

Brilliant move if you can do it. Just be aware of the financials; for example, work out how much permanent dead money you need in your bank account to support paying 10 contractors £400 a day in five working days when you get the money back after 60. With lost interest on capital it's around £250k...

Thanks good point. Can I not use the treasure chest of my company to help with this? are there issues using the same company that im contracting through as an agency?

[TestMangler]

Thanks good point. Can I not use the treasure chest of my company to help with this? are there issues using the same company that im contracting through as an agency?

No, there are no issues with using your company to do this.

A lot of contractors seem to think that their Ltd Co is some kind of 'special' entity that only allows you to accept contracts through agencies. It's not. Read your M & A of A.

Although, am well impressed that your company has a 'treasure chest'

[northernladuk]

Hasn't every new contractor had this idea at one point or another? Looks like money for old rope until investigated at which point it looks like a nightmare so leave it to the pimps.

[TestMangler]

Hasn't every new contractor had this idea at one point or another? Looks like money for old rope until investigated at which point it looks like a nightmare so leave it to the pimps.

I sourced a couple of bodies for a client back in the mid nineties and was basically asked to do this by the client, because I found them better people than agencies could at that point. I took the view that it was going to be a 'pain in the arse' and passed it on to another contractor, and ended up sourcing people for him for cash.

Anyway, over five years or so, he expanded it a bit and got bodies into another client and then another etc etc.

Upshot was, he was bought by an agent for 2.75 Mill. I made about £500 notes out of it.

Take yer choice about who made the right move.

[gamble1234]

No, there are no issues with using your company to do this.

A lot of contractors seem to think that their Ltd Co is some kind of 'special' entity that only allows you to accept contracts through agencies. It's not. Read your M & A of A.

Although, am well impressed that your company has a 'treasure chest'

How would i set this up? would i need to be on the companies PSL? I know they take contractors on directly to...so would i provide the contract direct then have a contract between me and the new contractor? Not sure if that makes sense!

Is there any tax implications?

Thanks
Gamble

[gamble1234]

I sourced a couple of bodies for a client back in the mid nineties and was basically asked to do this by the client, because I found them better people than agencies could at that point. I took the view that it was going to be a 'pain in the arse' and passed it on to another contractor, and ended up sourcing people for him for cash.

Anyway, over five years or so, he expanded it a bit and got bodies into another client and then another etc etc.

Upshot was, he was bought by an agent for 2.75 Mill. I made about £500 notes out of it.

Take yer choice about who made the right move.

Good story, and im not trying to be a big man, just a few contractors that provide a quality service! Just trying to get my head around the practicalities!

[TestMangler]

How would i set this up? would i need to be on the companies PSL? I know they take contractors on directly to...so would i provide the contract direct then have a contract between me and the new contractor? Not sure if that makes sense!

Is there any tax implications?

Thanks
Gamble

Gamble,

At the risk of turning into NLUK, are you sure you're cut out for this ?

Speak to your client's hiring dept, speak to an accountant, look up .gov websites.

In the immortal words of Boris The Blade's brother, 'Do you want me to hit him for you ?'

[northernladuk]

Gamble,

I wish I could be more like NLUK but, are you sure you're cut out for this ?

Speak to your client's hiring dept, speak to an accountant, look up .gov websites.

In the immortal words of Boris The Blade's brother, 'Do you want me to hit him for you ?'

FTFY

Upshot was, he was bought by an agent for 2.75 Mill. I made about £500 notes out of it.

Take yer choice about who made the right move.

Indeed but he is one in many many contractors who have had the idea to do the same. Good on him for making stick, the other 99.99% wouldn't.

I am sure he didn't come on CONTRACTOR forums asking questions about the basics of how to be an agent as well.