Contracting Retainer
Discussion
All,
I will be speaking to my accountant about this but I would be grateful for your thoughts as well.
I am a director of my own limited company. My company has a client who pays quite well and wants to also add to this a retainer that increases the termination notice on my Cos side of the contract (which is though an agency). This is quite a decent amount of extra money which would be held over to a milestone or not paid at all if the company withdrew services.
I'm not sure about this and the potential exposure it would give to the dreaded 35.
Has anybody had similar and can anyone advise how best to go about this or alternatively a counter proposal that will keep my co. and me safe but still give the client what they want (security of provision of a certain service).
I had some thoughts about an increase in rate charged that is only finally invoiced at the milestone point but isn't termed a retainer in the contractual sense.
I will be speaking to my accountant about this but I would be grateful for your thoughts as well.
I am a director of my own limited company. My company has a client who pays quite well and wants to also add to this a retainer that increases the termination notice on my Cos side of the contract (which is though an agency). This is quite a decent amount of extra money which would be held over to a milestone or not paid at all if the company withdrew services.
I'm not sure about this and the potential exposure it would give to the dreaded 35.
Has anybody had similar and can anyone advise how best to go about this or alternatively a counter proposal that will keep my co. and me safe but still give the client what they want (security of provision of a certain service).
I had some thoughts about an increase in rate charged that is only finally invoiced at the milestone point but isn't termed a retainer in the contractual sense.
Edited by Dusty Rhodes on Sunday 12th October 16:32
I posted a reply yesterday... where's it gone!
Anyway.
I work in a similar way to yourself. A good few years back, a client wanted to ensure that I didn't go elsewhere and decided to offer me company shares over a 3 year period. This would of pointed to being employed so I turned the offer down. Instead, we agreed to lengthen the contracts and pay well above the market rate thus ensuring that I had no need to look elsewhere. I suggest you do the same.
Anyway.
I work in a similar way to yourself. A good few years back, a client wanted to ensure that I didn't go elsewhere and decided to offer me company shares over a 3 year period. This would of pointed to being employed so I turned the offer down. Instead, we agreed to lengthen the contracts and pay well above the market rate thus ensuring that I had no need to look elsewhere. I suggest you do the same.
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