Becoming an Interim Manager
When working as an interim manager it is important to establish a position as an outside supplier of professional services, rather than being considered as an employee. The Inland Revenue has strict rules governing individuals who provide professional services and these are covered under the overall banner of IR35. It is vital that interim managers establish that they are not liable under IR35 and they are advised to seek guidance from a suitably qualified source such as a chartered accountant. The Inland Revenue publishes clear guidelines on IR35 and these can be found on their website.
Professional Indemnity Insurance
Interim managers should have appropriate professional indemnity (PI) insurance in place to cover any claims arising from negligence, professional misconduct or health and safety infringements.
Impact Executives insists that all of its interim managers have appropriate PI insurance cover as a safeguard for all parties involved in this type of contract. There are many insurance companies and brokers that offer this type of cover. The level of PI insurance should be appropriate for the level of risk attached to the assignment; typically £0.5m upwards.
Setting up a limited company
It is common practise for interim managers to operate via their own limited company and a pre-requisite when working with Impact Executives. This allows them to more easily meet the IR35 rules and also provides them with a marketing entity to promote their services.
Setting up a limited company is a relatively simple operation, but again individuals are advised to seek the advice of suitably qualified professionals to assist with this process. For more details about setting up a limited company please contact your professional advisor.
The interim manager’s limited company contracts with Impact Executives Limited – thereby minimising your risk. Impact Executives then has a back-to-back contract with the client.
Timesheets and invoices are submitted monthly. The precise dates for submission and payments are detailed on the Pay Schedule, which is sent to each interim manager on assignment. To process any payment we will need both a timesheet and an invoice.
Payment of an Interim Manager
Once the timesheets and invoices have been received and processed, Impact Executives pays the interim manager’s limited company within 14 days by BACS transfer.