Reply to: Advise on contracting via another ltd company

[LondonManc]

Yes and even from a client perspective its not a good idea. Yes they may save money but if I left then how long would it take other person to find replacement.

Not your concern.

You have to do what's best for you - they are doing what's best for them. As I said, if hey have to use an invoice factoring company to get you on to weekly pay, you'd probably have to accept a lower rate but at least you're actively mitigating the risk. That's no different to what most agencies anyway.

[xenomorph]

Yes insolvency of the other ltd company can cause major problems. Credit check the other ltd before even starting to talk about payment terms. They may be on 90 days payment terms with the end client you should never accept that, the worse their credit score the quicker you need your money.
Get a clear SOW with well defined deliverables

Yes and even from a client perspective its not a good idea. Yes they may save money but if I left then how long would it take other person to find replacement.

[Eirikur]

Apart from payment terms is there anything else I should be aware of?
Anything to cause problems.

Yes insolvency of the other ltd company can cause major problems. Credit check the other ltd before even starting to talk about payment terms. They may be on 90 days payment terms with the end client you should never accept that, the worse their credit score the quicker you need your money.
Get a clear SOW with well defined deliverables

[LondonManc]

Yes it would me by company having contract with other persons company.
Will have a look at those templates and see what they think about payment terms.
Thanks all

As I said, all down to trust - if you trust the guys you're subcontracting for then the only issue is them not getting paid by the client for the work you've done.

Part of the job when there's lack of timesheets (if there will be in your case) is to drop a summary of work carried out each week to the people that you'll be invoicing to demonstrate what you're delivering each week. That's purely to prove that you're invoicing genuinely for 10, 15, 20 days, whatever it may be.

[xenomorph]

All down to trust for you then - I've operated like that on a paid-when-paid basis. No timesheets to worry about because there's nobody to sign them.

I presume yourco will be invoicing subcontracting co? If so, do it in the first couple of days of the next month for the previous month's work:

x consultancy days @ £y
create the total
add the VAT
expect that amount z days later.

There are standard templates for this online.

Yes it would me by company having contract with other persons company.
Will have a look at those templates and see what they think about payment terms.
Thanks all

[LondonManc]

They mentioned I could get better rate as less fees will be charged on the day rate vs against agency. But I suspect if they take £50 a day from my rate it would only leave me with £25 extra a day which is what the total cost of agency fees were for the client.

All down to trust for you then - I've operated like that on a paid-when-paid basis. No timesheets to worry about because there's nobody to sign them.

I presume yourco will be invoicing subcontracting co? If so, do it in the first couple of days of the next month for the previous month's work:

x consultancy days @ £y
create the total
add the VAT
expect that amount z days later.

There are standard templates for this online.

[NotAllThere]

oops did not even notice that!
cant edit it now

I can.

But I like the idea of limited co-moany.

[northernladuk]

oops did not even notice that!
cant edit it now

So need some advise on any major risk of the following

[xenomorph]

Advise on contracting via another ltd comoany

oops did not even notice that!
cant edit it now

[northernladuk]

You mean ensure the contract is checked for grammar and spelling errors?
Or you joking? lol

Advise on contracting via another ltd comoany

[xenomorph]

Get all your correspondence on the matter spelling and grammar checked...

HTH

You mean ensure the contract is checked for grammar and spelling errors?
Or you joking? lol

If it's a genuine case of sub-contracting via a B2B arrangement, a statement of Ts and Cs for the engagement between yourco and theirco should be sufficient. Amicably discuss the payment schedule (you may have to settle for a lower rate if they have to invoice factor and pay you weekly for example) and other things that you consider key (IP, etc.) and get them documented and signed off by a director from both parties.

They mentioned I could get better rate as less fees will be charged on the day rate vs against agency. But I suspect if they take £50 a day from my rate it would only leave me with £25 extra a day which is what the total cost of agency fees were for the client.

[northernladuk]

Apart from payment terms is there anything else I should be aware of?
Anything to cause problems.

Get all your correspondence on the matter spelling and grammar checked...

HTH

[LondonManc]

If it's a genuine case of sub-contracting via a B2B arrangement, a statement of Ts and Cs for the engagement between yourco and theirco should be sufficient. Amicably discuss the payment schedule (you may have to settle for a lower rate if they have to invoice factor and pay you weekly for example) and other things that you consider key (IP, etc.) and get them documented and signed off by a director from both parties.

[xenomorph]

Apart from payment terms is there anything else I should be aware of?
Anything to cause problems.

[ladymuck]

@ladymuck so the other contractor wont be via agency anymore. they would directly be contracted with the end client to supply people via outcomes based contract.

Apologies, missed that