Sub-contracting to a practice

Gem7321

Hi everyone

As of next week I start sub-contracting to a practice for around 2 days per week for around 6 months. What sort of formal agreement should I put in place? The only thing I've ever really dealt with before are Letters of Engagement, but I suppose in this instance I just need them to sign something that says they agree to pay fees on time and that I am covered by their own PII. Should I include anything else? And on their end I will be signing confidentiality, fit and proper forms etc.

Thanks

Gem7321

Just bumping!

PGM

Sounds like it borders on being a contract?

Monsoon

Gem7321 wrote: »

I am covered by their own PII.

I have a bit of an issue with this one. If I am taking on an employee, obviously their work is covered by my PII. If I subcontract work out to someone, then obviously my work (done by them) to the end client comes under my PII and if they made a claim against me they claim on my insurance. If it was the subbie's error though, I want to know they have their own insurance so I can counter-claim, otherwise I am out of pocket (both in an insurance excess which is typically £500+ per claim and higher future premiums). I would not use a subbie without their own PII.

Bugbear over and back on topic! I would issue a custom letter of engagement or a contract (aren't they broadly the same thing?!) and just include the things you want/need, such as payment terms, responsibilities, confidentiality etc. You probably also need to cover employment status to establish that you are a subbie and not an employee. I've started using Simply Docs which seems very well priced and provides you with sample contracts including one which could be adapted for your needs.

Gem7321

Thanks guys

I have my own PII as well but I remember when applying for my MIP licence there was a section on subbies saying if you sub you must have written confirmation that the contractors PII covers you. The practice hasn't even asked me about my own PII which I thought was a bit odd, unless it really isn't an issue! Maybe it will become an issue when I give them the contract to sign

I'll have a look at Simply Docs, thanks for that

deanshepherd

There is a template subcontractors agreement in the MIP toolkit (here).

shadeofblue

Hi Gem,

Do you have any tips on how to 'get through the door' of subcontracting to a practice?
I'm looking to get into this (to fill in the gaps of my client's work) but I find that some accountancy firms dont grasp this has they may consider me competition or think I might take their clients. :-S

Your advice would be appreciated.

Gem7321

Thanks everyone and thanks Dean.

Shadeofblue, I actually registered with an agency saying I was interested in any Part Time/temp accounts work and they found me this part-time maternity cover straight away.

The client I'm subcontracting to is more of a consultancy practice was concerned that I'd approach his clients when the assignment ends but I explained that I don't believe we're fishing from the same pool (at the moment I'm just looking for joe bloggs self assessments and maybe 1 day per week bookkeeping, payroll etc) and I'd be happy to enter into a contract arrangement with a restrictive covenant on me (the same sort of clause that an employee would have) and he was happy that he'd be under no obligation to pay me holiday pay or sick pay.

Oh and beware IR35!