LTD COMPANY and SOURCING CONTRACTORS

**northernladuk** · 9 July 2013, 11:29

WTF is it with people and advise/advice??? and the caps?

I think nearly every contractor has had this idea and I bet in 99.9999% it never worked. When you say in a position? You are on the PSL of the client? They have credit checked you etc? You know how to write a SoW and get a contract in place with them?

How much were you looking to skim off their day rate? Have you the stomach to deal with them when they find out? Can you write contracts as you will be legally liable for them.

Are you in a position to deal with issues with the contractors you are responsible for i.e. will you be working with your client on this while you are being paid to do work?

This isn't just a matter of bunging some people in and taking a cut, you are responsible for them which will reflect on you personally.

I also say if you have to ask a public forum about the basics of doing something I think you are going to struggle. Someone that could spot an opportunity and make it work would also be able to go research it in the right places and ask the right people.

**stek** · 9 July 2013, 11:34

Off top of ones bonce....

1. Employee Liability insurance?

2. No FRS?

3. Pension rights if more then 5 employees ISTR.

4. Additional Accountancy Fees

5. potential for top CT rate?

6. Never go into business with other people.

Last one for me, let them fend for themselves, not worth the hassle unless your ripping them off margin-wise.

Been in business twice with A.N Other, balls burned twice; no thanks...

**Antman** · 9 July 2013, 11:37

Originally posted by northernladuk View Post

wtf is it with people and advise/advice??? And the caps?

It's because IT IS VERY IMPORTANT!

**Chosen1** · 9 July 2013, 11:53

Thank you everyone.

I believe we all need to share or we wouldn't be where we are today without helping each other.

More info would be much appreciated.

**stek** · 9 July 2013, 11:57

Originally posted by Chosen1 View Post

Thank you everyone.

I believe we all need to share or we wouldn't be where we are today without helping each other.

More info would be much appreciated.

Are you helping or looking to profit? Nothing wrong with that just don't mix the two!

**TheFaQQer** · 9 July 2013, 12:20

Originally posted by Chosen1 View Post

Hi all.

I am currently a 1st/2nd line IT contractor. I also have a Ltd company.

I am hoping to get some advise on here, hence that's why I've registered. Plus also to give away any knowledge, experience and hope to any other member.

The issue I have is that I am in a position to potentially set on other IT contractors and for them to work or trade through my company.

Is this possible and what is required for me to do this? Are there any financial/legal implications to this?

Any help or info would be gratefully appreciated.

Andy.

Are you looking to take them on as employees? Partners in an LLP? Directors with a shareholding? There are different legal implications to consider with each of these.

If you are just looking to set yourself up as an agent for this client, and have the other contractors use your company as a pseudo-agency, then you have to ask what are you offering that an agency doesn't? Can you afford to be factoring the invoices, so that the contractors get paid before you get paid by the client? Can you afford to take the hit if the client decides not to pay but the contractors want their money?

If I have PCG+ membership and the client or agency goes bust, then there is a chance that I might get some money back from that scheme - would you be covered? If not, then why would I want to put all my risk into a new venture, run by someone with no experience and no knowledge of what they are getting into?

**Scruff** · 9 July 2013, 12:27

Bob-a-Job

**Chosen1** · 9 July 2013, 12:34

Im hoping to provide work for people because I keep getting agencies/recruitment consultants ask me if I know anyone for a role, if Im not interested.

As a result, I can capitalise from organisations that are simply searching for contractors.

The steps I would follow would be:

(Agency) Can you get me a contractor for 2 months at X place and to pay X amount of pounds.

(Me) Yes I can. Here are the contractors details, including security cleared.

The agency will pay my company and subsequently, I will pay the contractor.

Does that sound right? Even though Im to research the insurances, legal issues and financial issues.

**LisaContractorUmbrella** · 9 July 2013, 12:36

Originally posted by Chosen1 View Post

Im hoping to provide work for people because I keep getting agencies/recruitment consultants ask me if I know anyone for a role, if Im not interested.

As a result, I can capitalise from organisations that are simply searching for contractors.

The steps I would follow would be:

(Agency) Can you get me a contractor for 2 months at X place and to pay X amount of pounds.

(Me) Yes I can. Here are the contractors details, including security cleared.

The agency will pay my company and subsequently, I will pay the contractor.

Does that sound right? Even though Im to research the insurances, legal issues and financial issues.

How are you planning on paying the contractor? Through PAYE?

LTD COMPANY and SOURCING CONTRACTORS