Taking on sub-contracted work

S Thomas

Would anybody be able to give me some advice? I have just been offered some work via another self-employed accountant - I suppose this is referred to as sub-contracting? I was wondering what paperwork I need to exchange with the other accountant before work begins - would this be something they raise and I agree to, and would I need to raise an agreement eg a version of a letter of agreement, to cover myself also?


Any advice, or stories of experiences from others very welcome.

Thanks

Suzanne

ehague

Hi there!

I did some subcontract work when I first started working for myself last year - it provided a good source of income in the early months but I had real cashflow problems as the accountants I was working through wouldn't pay me until they had been paid by the end client.

Firms of accountants often have their own agreements for subcontractors to sign although I think I have got some basic templates somewhere.

Make sure that you get your fee agreed up front in writing. I have had an instance where the accountant concerned tried to get me to reduce my fee after I'd done the work because the client refused to pay his bill because it was so high (it was more than DOUBLE what I had charged the accountant!).

Also, be aware that you obviously can't earn as much this way as the 'contractor' will want to make a margin as well and I suspect that some accountants may subcontract out those clients that don't pay so quickly.

That said, with the right relationship you can pick up some valuable contacts and someone to ask technical questions when you're not sure of something.

Good Luck!!

Emma

S Thomas

Thanks Emma. Your advice is much appreciated.

I have in fact found a sub contractors agreement template on the AAT website, but if you do have any other examples, I would be happy to receive them as the template I have needs to be altered to suit different needs - maybe I could combine them - I will send you a personal e-mail showing my e-mail address if that is ok.

I suppose if the accountants have their own agreement to sign, it would be difficult to get them to sign your own agreement as well.

Thanks again.

Suzanne