Sub-contracting and levels of insurance, sole trader

Whissst

I am considering an option to sub-contract from a company, I have all the required insurance, can a company hold me liable beyond my insurance levels of cover? or can I tell tell i am only liable up to the valve of my insurance.

Sue Pa Key Pa

Most main contractors will insist you have the same level of cover as they have and at least to the level required by the client under contract. The main contractor will not want to pick up any surplus of any claim on their insurance. You can't limit the level of your liability

Carriers liability for hauliers is different

Whissst

thanks

Steve

As a sole trader there is no limit to your liability, there is a limit to the cover you purchase.

I've dealt with clients in the past that insisted on €30m before awarding a contract.

If you are worried about it then set up a limited liability entity as a vessel for the contract work.

Sue Pa Key Pa

Steve wrote: »

As a sole trader there is no limit to your liability, there is a limit to the cover you purchase.

I've dealt with clients in the past that insisted on €30m before awarding a contract.

If you are worried about it then set up a limited liability entity as a vessel for the contract work.

I doesn't matter whether the OP is a sole trader or a limited company. He will have to obtain the level of liability insurance required by the main contractor or he won't get the job. This is to cover any award/costs for an injury or damage caused by them in the performance of the contract. That award won't vary on the trading status of the OP

Steve

Sue Pa Key Pa wrote: »

I doesn't matter whether the OP is a sole trader or a limited company. He will have to obtain the level of liability insurance required by the main contractor or he won't get the job. This is to cover any award/costs for an injury or damage caused by them in the performance of the contract. That award won't vary on the trading status of the OP

The OP was asking a more general question tho, non performance of contract can be insured against and is limited to whatever is specified in the contract.
Claims for negligence / public liability are not limited in this way.

For example if I was contracted to go change a light bulb above a conveyor in a food factory and I failed to do it properly then they can sue me for the cost of the contract (e.g. €100) so my contract insurance needs to cover €100.

If, however, I am negligent, break the light bulb and glass gets into their food production line causing death or serious injury to end condumers then they can sue for a whole lot more - as they will be sued by their clients.

Sue Pa Key Pa

The OP never mentioned non performance of the contract, you're over thinking the situation. A subcontractor would not be involved in that aspect, it would only be in the realm of the main contractor.

This is about liability cover for injury or damage in the performance of his duties and my explanation applies

Whissst

Thanks All, I have adequate insurance.


I'm a sole trader doing sub-contracting, does that change VAT status for me.
Another questions, when billing the contractor what do I put down for VAT...I won't be applying it as I don't think I'll earn 37,500e.
VAT rate : 0 %
VAT: Not applied
VAT: Sole trader or sub-contracting

Sue Pa Key Pa

Sorry OP, I only know the insurance end of things, not the VAT. I'm sure someone else can assist

Steve

Whissst wrote: »

Thanks All, I have adequate insurance.


I'm a sole trader doing sub-contracting, does that change VAT status for me.
Another questions, when billing the contractor what do I put down for VAT...I won't be applying it as I don't think I'll earn 37,500e.
VAT rate : 0 %
VAT: Not applied
VAT: Sole trader or sub-contracting

If you aren't registered for VAT then you don't charge it, don't even mention it on an invoice.
It's common practice to include your PPS no. and CRO registration no. on an invoice to keep the accounting above board.

If you want to register for VAT to 'look more professional' then it's easy enough through ROS. You'll need to do a return every 2 months but the upside is you can claim back on expenses like mobile phone and materials etc.

hullaballoo

The VAT return period has been extended to 3 monthly online only filing.

brian_t

hullaballoo wrote: »

The VAT return period has been extended to 3 monthly online only filing.

Are you sure,

It's 6 monthly if your annual liability is €3,000 or less
and 4 monthly if your annual liability is between €3,001 and €14,400

otherwise it seems to remain a bi-monthly return.

https://www.ros.ie/info/faq/vatform1.html#Question6

http://www.revenue.ie/en/tax/vat/guide/accounting.html

Steve

I wasn't aware there were options other than every 2 months. I just file when they send me the reminder - which is every 2 months.

NUTLEY BOY

Whissst wrote: »

I am considering an option to sub-contract from a company, I have all the required insurance, can a company hold me liable beyond my insurance levels of cover? or can I tell tell i am only liable up to the valve of my insurance.

Question 1 - yes.
Question 2 - no.

emeldc

Whissst wrote: »

Thanks All, I have adequate insurance.


I'm a sole trader doing sub-contracting, does that change VAT status for me.
Another questions, when billing the contractor what do I put down for VAT...I won't be applying it as I don't think I'll earn 37,500e.
VAT rate : 0 %
VAT: Not applied
VAT: Sole trader or sub-contracting

I'm sure you know anyway but, €37,500 is the turnover threshold for supply of services. It's not profit or 'earnings'. It's not difficult in any business these days to have a turnover of €720 P/W unless it's just a part time thing.