Right of substititution

[tim123]

Yes and the last laugh will by on them - because there already have been a number of these cases, where the employer got billed both NIC & Tax even though the contractor has paid their Tax & NIC themselves!

For an SE contractor there could be hundreds, but for a Limited company contractor there are none (and there never will be any IMHO).

tim

[Little'Old Me]

and they will laugh at you.

tim

Yes and the last laugh will by on them - because there already have been a number of these cases, where the employer got billed both NIC & Tax even though the contractor has paid their Tax & NIC themselves!

[oracleslave]

Nope you wont. Despite what many people will say, it will be the client who 'places' any sub in your place. You cant just say 'here's my sub' and expect the client will agree.

I have done it twice with no issue. I didn't just dump the client with a new consultant, I did a proper handover and they had no real issue with it. I appreciate this may be the exception to the norm.

BTW to the OP I didn't make them employees of myco but had a B2B contract in place instead. Dependent on your rate and turnover this may affect you VAT FRS options so speak to your accountant about that.

[BolshieBastard]

The question is, am i able to place a substitute at client A for 2 months while i am at client B premises?

Obviously the substitute would be suitably qualified.

Nope you wont. Despite what many people will say, it will be the client who 'places' any sub in your place. You cant just say 'here's my sub' and expect the client will agree.

The reality is most of us have subs clauses, most of us wont trigger them and of those that do, very few will actually manage to get the client's agreement to a sub in their place.

[tim123]

If Client A refuses to accept the choice of substitute, point out that without it, the HMRC could invalidate your contract and they (Client A) could find themselves liable for all your TAX & NIC as an employee, which I presume they though they got out of - by making the contract with you in the first place!

and they will laugh at you.

tim

[tim123]

A quick question with what may be an obvious answer.

I am currently contracted to client A with an ongoing contract. There is a right to substitute clause in the contract which have not used as yet.

I have a possible 2 month role with client B which is at the other end of the country.

The question is, am i able to place a substitute at client A for 2 months while i am at client B premises?

Obviously the substitute would be suitably qualified.

If it's a genuine RoS and not just a sham inserted in the contract for a tick in a box, then yes.

And if this is feasible, would the substitute need to be an employee of myco and I still invoice client A for the services and pay the substitute?

The existing case law says that this is exactly what you must do.

tim

[jmo21]

Or you might find that your substitute has to have red hair and be called Eustace. It all depends on the contract.

I knew I should have reviewed the contract more thoroughly - my subby Eustace is blond!!

[thunderlizard]

The answers you seek will be found in the wording of that clause in your contract. You might find that you can use employees of your company without any extra measures, but subcontracting needs the client's approval. Or you might find that your substitute has to have red hair and be called Eustace. It all depends on the contract.

hth

tl

[Little'Old Me]

The choice of substitute would be made either by client A or the terms of the contract between you. The substitute would not normally need to be an employee and yes you would invoice client A and pay the substitute.

If Client A refuses to accept the choice of substitute, point out that without it, the HMRC could invalidate your contract and they (Client A) could find themselves liable for all your TAX & NIC as an employee, which I presume they though they got out of - by making the contract with you in the first place!

[sage@reillymcmordie]

Right of substitution

The choice of substitute would be made either by client A or the terms of the contract between you. The substitute would not normally need to be an employee and yes you would invoice client A and pay the substitute.

[framework]

A quick question with what may be an obvious answer.

I am currently contracted to client A with an ongoing contract. There is a right to substitute clause in the contract which have not used as yet.

I have a possible 2 month role with client B which is at the other end of the country.

The question is, am i able to place a substitute at client A for 2 months while i am at client B premises?

Obviously the substitute would be suitably qualified.

And if this is feasible, would the substitute need to be an employee of myco and I still invoice client A for the services and pay the substitute?

All help greatly appreciated!