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employing someone via my LTD

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    employing someone via my LTD

    I usually get approached by agency for contracts which I can not do. Has anyone sub-ed out the work i.e you take contract but employed someone else obviously I would need to make sure they do not approach the person themselves etc.

    Does anyone do this?

    thanks

    #2
    Be very careful about using the word employing.

    Will you be paying them holiday pay, sick pay, maternaty etc. Employees have legal rights.

    You are talking I suspect about acting as an 'extra agency layer'.

    Will you be paying them before Your Co gets paid? Will this push your turnover outside the qualification for FRVS if it's not already. Will your insurances cover this person?

    It is doable but needs proper thought IMHO.

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      #3
      You will have a responsibility to that person to treat them properly, you will have responsibility to the client to provide the service, you have to get on the PSL or prove to the client you are capable to do this and you will have to know you business inside out including your finances to fulfil you legal and moral obligations. Not understanding the basics of warchests and CGT is not a good start.

      I think we have probably all throught about this at sometime but in most cases it won't fly or it just isn't worth doing.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #4
        I put one of my mates through my company in an "umbrella" capacity when he had a 6 week contract prior to going perm. What a pain in the arse the paperwork was. You live and learn though.
        Formerly Sausage Surprise but forgot password on account that had email address from old gig

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          #5
          Originally posted by Wobblyheed View Post
          I put one of my mates through my company in an "umbrella" capacity when he had a 6 week contract prior to going perm. What a pain in the arse the paperwork was. You live and learn though.
          There is one thing taking someone on via your LTD, putting your mates through it is another matter entirely. Something I would not touch with a 10ft barge pole. If you mix business and pleasure and get away with it you have been lucky IMO.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #6
            Originally posted by contractor55 View Post
            I usually get approached by agency for contracts which I can not do. Has anyone sub-ed out the work i.e you take contract but employed someone else obviously I would need to make sure they do not approach the person themselves etc.

            Does anyone do this?
            There is no reason not to, you can even subcontract part of the work for a contract you are doing (good IR35 pointer too). However, you need to remember that you are not "employing" someone, you are "subcontracting the work". As others have pointed out, employees have rights so don't go employing anyone other than your spouse through your LTD, it's too much red tape.

            The sub contractor would have to have a Limited Company and a business to business contract with your company (PCG have templates) or else work through an umbrella company and you would contract it to the brolly.
            Free advice and opinions - refunds are available if you are not 100% satisfied.

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              #7
              Hmm. I know contracts can have this substitution clause in for IR35 but has anyone ever attempted to send someone else into client site ever?

              Personally, I cant ever see if happening in my case. Im not a developer/coder so I guess farming out a chunk of work may be easier with a detailed spec etc.
              Rhyddid i lofnod psychocandy!!!!

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                #8
                Originally posted by psychocandy View Post
                Hmm. I know contracts can have this substitution clause in for IR35 but has anyone ever attempted to send someone else into client site ever?

                Personally, I cant ever see if happening in my case. Im not a developer/coder so I guess farming out a chunk of work may be easier with a detailed spec etc.
                So you are inside IR35 then?
                'CUK forum personality of 2011 - Winner - Yes really!!!!

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                  #9
                  Originally posted by northernladuk View Post
                  So you are inside IR35 then?
                  Just wondering if anyone has ever got client to agree to a substitution?
                  Rhyddid i lofnod psychocandy!!!!

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