Associate

[redgiant]

I'm going to be doing some work for a UK consultancy and will working as an associate to help them with a client of theirs. I'm looking through the contract now and I can't see any issues with it aside from insurance. They have said that they would be able to cover the work I’ll be doing with their existing public liability and professional indemnity insurance policies as I currently don't have any active policies running. I don’t think that this will be a problem as long as the policy extends to cover the work that I do to the required level of coverage stipulated by the client (£2 million).

Is there anything I should be aware of inc. impact on IR35 for being an associate? I had a search and can't find anything relating specifically to this so many thanks in advance for your help.

 

[northernladuk]

I'm going to be doing some work for a UK consultancy and will working as an associate to help them with a client of theirs. I'm looking through the contract now and I can't see any issues with it aside from insurance. They have said that they would be able to cover the work I’ll be doing with their existing public liability and professional indemnity insurance policies as I currently don't have any active policies running. I don’t think that this will be a problem as long as the policy extends to cover the work that I do to the required level of coverage stipulated by the client (£2 million).

Is there anything I should be aware of inc. impact on IR35 for being an associate? I had a search and can't find anything relating specifically to this so many thanks in advance for your help.

I don't believe that about the insurance. If you screw up, their insurance will cover the clients loss but they will come for you for their loss as well. I would say seems insurance is an issue you need your own. It is only £240 a year with QDOS for PI/PL but I think that is only £1 mil so need to check. Your client offering to cover you with their insurances a) doesn't sound right and b) makes you sound like an employee so has to be bad for IR35. I don't know how being an associate would be different from you being an LTD consulting exactly but just make sure your company is covered whatever.

On the topic of IR35, I asked a question on the forum about how it works being on a client of a clients site and who's employees do you not have to look like. I think the answer was both so have to make sure even if your contract looks IR35 proof (you have had it checked I presume?!!?!?) and won't be treated like a permie by your client, you must also not be directed by the clients client either.

There is a post right below this one at this moment that is an example of being treated like an employee of the end client. Link is here http://forums.contractoruk.com/business-contracts/84124-being-part-team.html

Hopefully the end client will have a host of measures to make you look like you are not part of their organisation, different coloured pass, email with your clients name in on the end clients system like Regiant (client)@endclient.com or something.

Also don't take your eye off the ball with your client. Although you might be an associate, they may want to integrate you as part of their team as a single face to their client. Try and avoid this and don't get caught up in team meetings, away days and everything else that your clients team at the end client does...if that makes sense.

Be interesting to see how they treat you as an associate but I can bet if you take your eye off the ball they will just try and integrate you in to the team so just think about what goes on.

Might not have understood your situation as an 'associate' properly but hope some food for thought there.

 

[stek]

Associate

Do you have the right to work in UK?

 

[redgiant]

Thanks NLUK. It's quite common with some smaller niche consultancies to use associates to fill their skillsgap or boost the headcount for certain clients. I have only been on the other side of the table as my last permie job was for a similar consultancy but I never dealt with associate contracts. I will be working either from home or the consultancy's end client office and will be doing the requirements gathering and then if accepted and signed off by the end client the implementation, training and hand over so it's a separate project in itself and shouldn't require me to attend meetings that are not linked with that work. Still worth as you said getting it checked out for IR35 compliance.

As for the PI/PL insurance I'll give QDOS and Hiscox (Hiscox have got very competitive prices now) a call in the morning and discuss this further as the alarm bells started to ring when I saw this on the contract. The work may only last a few days but it could be extended depending on what I uncover.

Do you have the right to work in UK?

Yes, UK citizen. Why do you ask?

 

[blacksta]

Do you have the right to work in UK?

Very Very relevant

 

[speling bee]

I work as an Associate from time to time. Haven't had any problems. In fact, being associated with a consultancy can help separate you from the permie structure.

 

[redgiant]

I work as an Associate from time to time. Haven't had any problems. In fact, being associated with a consultancy can help separate you from the permie structure.

That's what I was thinking as well. I've spoken to QDOS and they not surprisingly recommended me to get my own PI/PL insurance for the UK again to help maintain that separation for IR35 purposes so I’ve gone for that. I’ve also sent over the contract for them to review given its part of the service.

 

[Vandalay]

This kind of work now makes up about 80% of my at the moment, and it's great in terms of higher rates, more flexible working vs being a regular contractor. For IR35 I'm certainly no where near in danger for the end client. For the consultancy themselves I'm pretty comfortable with a robust contract, but ultimately the working practices speak for themselves. I'm much less of an disguised employee this way than I ever was as an agency contractor.