Contractor To Multiple Subsidiaries

[TheCyclingProgrammer]

Erm.. This is such a simplistic response it's bordering on being incorrect... You've missed a ton of details and made far too many assumptions.

Agree, and I also agree that the simplest thing would be a single overarching master service agreement with the parent company and individual schedules for each subsidiary - just treat each piece of work with each one as a different project.

From an IR35 point of view they may still be treated as separate contracts as arguably the MSA with the parent company is only part of the contract for your service; the other part is each schedule raised.

[northernladuk]

Depends on whether your company will have contracts with each business separately, or only with the parent company.
If only with the parent company then it looks like an employee of the parent company being moved form site to site.
If it is individual contracts with your company which each subsidiary company then make hay while the sun shines.

Erm.. This is such a simplistic response it's bordering on being incorrect... You've missed a ton of details and made far too many assumptions.

[FarmerPalmer]

Depends on whether your company will have contracts with each business separately, or only with the parent company.
If only with the parent company then it looks like an employee of the parent company being moved form site to site.
If it is individual contracts with your company which each subsidiary company then make hay while the sun shines.

[wearthefoxhat]

One overarching agreement with a schedule for each piece of work would be much easier for most clients but if they are independent entities that might not work. Being on the PSL would also allow you to bid for other work and put other contractors in as well so done properly could be a nice scoop for you. When you've had enough you could sell your company and it's relationship to your client to a small outsourcer for some good mullah. Sounds like you have a great opportunity in the making there.

Certainly a great opportunity. I'm fortunate in the relationship I have, and it suits the client to engage me in this way as I have 25+ years experience at board level in global companies, and also as a business owner. With this comes the experience in many disciplines that the client is looking for. I'm sure if / when we are underway with this, there will be times to engage others who may be stronger in a particular area, thus creating more and more scope for growth. Thanks again!

WTFH

[northernladuk]

One overarching agreement with a schedule for each piece of work would be much easier for most clients but if they are independent entities that might not work. Being on the PSL would also allow you to bid for other work and put other contractors in as well so done properly could be a nice scoop for you. When you've had enough you could sell your company and it's relationship to your client to a small outsourcer for some good mullah. Sounds like you have a great opportunity in the making there.

[wearthefoxhat]

Thinking a little more on this. If you have a good supplier relationship with the main client or whoever has brokered this deal could you not get on their authorised PSL and maybe offer up an overarching agreement as well as the individual contract? Be bloody hard to argue you are not a company with all that in place. HMRC will have zero appetite to come looking at individual contracts with all that.

PSL being Preferred Supplier List? Interesting idea, and one that I'll give some more thought to. Just to clarify, one agreement to engage () with the 'group' as a whole, backed up with individual contracts for each activity and entity. Are you thinking this could sit OK within a LTD company (formation for the sole purpose of contracting) and through which I could invoice each entity?

Thank you so much for your input. Been a bit of a minefield trying to get my head round the best way to do this!

WTFH

[northernladuk]

Thinking a little more on this. If you have a good supplier relationship with the main client or whoever has brokered this deal could you not get on their authorised PSL and maybe offer up an overarching agreement as well as the individual contract? Be bloody hard to argue you are not a company with all that in place. HMRC will have zero appetite to come looking at individual contracts with all that.

[northernladuk]

IR35 is on a contract by contract basis but if you just carry out standard due diligence on each on with a QDOS check, IPSE membership etc you'll be fine. You'd easily pass the now defunct BET so it's gonna be hard for HMRC to put a decent case together.

Just make sure you've done the contract properly and even back up with a confirmation of arrangements you'll be OK IMO

[garethevans1986]

a) you dont employ contractors, you engage their services (getting in there before NorthernLadUK does).

Because IR35 is looked at on a contract by contract basis, you could be working within IR35 on one or more contracts and outside on the other(s). It'll be down to your working practices too.

Have you read the first timers guides? First Timers Guide - for IT Contractors :: Contractor UK
Have you read the IR35 guides? IR35 Legislation - Advice, Help and Information for UK Contractors

Thanks
GE

[wearthefoxhat]

Good afternoon,
New to the forum, and indeed new to contracting (though have employed many contractors in the past). I've struck up a relationship with an organisation who want to offer me a contract with each of 5 subsidiaries as well as the parent company. Each company is LTD, therefore its own legal entity, but connected. I was hoping someone could clarify the situation with regard to how this would likely be viewed by our friends at HMRC in terms of IR35 - would they consider each contract on its own merit, or view as one company i.e. the parent company. FYI - the contracts would be roughly 8 to 12 hours per company.

Would be great to hear thoughts on this subject and I apologise if it is something that has been asked previously. I did search the forum without success prior to posting.

Thank you,
WTFH