Setting up as an interim

If you want to be successful as an interim manager, set up right from the start!

This is how our member's of Interimconnect operate.

If you are an experienced interim manger you will have been through all this.

The following is therefore for those new to interim management:

Prepare your CV 

First of all there is no such thing as a perfect interim CV. Everyone seems to have an opinion on what makes an engaging CV. What follows is some generally accepted advice.

In contrast to a CV for a permanent role an interim CV should focus on achievements. Highlight any projects which have included interim management, project management and particularly change management.

"Size matters" in a CV so two to three pages for an interim CV is judged to be about right. Any longer and it may convey a lack of conciseness.

With spell checkers there is really no excuse for spelling mistakes. Spelling mistakes can undo all the good work you have put into your CV.

Finally before you apply for an interim assignment review the document to make sure it highlights the experience and skill set you have that the assignment demands.

Operate through a limited company

This is a normal requirement for interim managers.

Interimconnect assignments can result in you obtaining a direct contract with a company that becomes your client. However, there is a risk that unless you operate through a limited company that client could become liable for PAYE and NHI on the fees paid to you. That is why for all these type of assignments introduced through the network you must operate via a company.

It is not a requirement to have set up a limited company to join Interimconnect and attend meetings. However the assignment opportunities generated in the network do require you to operate through a limited company.

There are other good reasons to operate this way. Being a limited company means your liability is limited. Not so if you are a sole trader or partnership where your liability can be unlimited.

Take out Professional Indemnity Insurance (PII)
 

Our members have Professional Indemnity Insurance (PII). By definition, interim management means taking on challenging assignments, particularly in the area of Turnaround. In case events take a turn for the worse, PII is there to protect you. It also indicates to interim assignment holders that you take the interim management seriously and are prepared to back your reputation with professional insurance .

Register for VAT

Get registered for VAT, as you will almost certainly be over the threshold limit. Although it means some more administration you can reclaim input tax. If you are not registered for VAT it could put a doubt in a Clients mind about your tax status.

Have clear and comprehensive letters of engagement

Get the letter of engagement clear at the beginning. Not only does it force clarification of the assignment objectives, it defines responsibilities and can help with tax status (IR35)

 

Accounting and Tax matters. Keeping on top of administration.
 

Whether you are looking for an assignment or are on one, you still need to keep on top of the admin! Unless you promptly invoice clients and collect them cash flow will suffer.Then there is accounting tax and payroll and all the declarations that go with it. Getting behind can result in fines and other headaches detracting from the assignment.

 

Always be prepared!

So you are all set up and an interview comes along. Great! Do your research anticipate questions and have your own questions prepared. This may sound pretty basic stuff but we know of many interim managers that have failed at interviews due to lack of preparation. They were then surprised they didn't get the assignment!

The Interimconnect network seminars and workshops are designed to help improve skills.

As an Interim Manager do the Money Laundering Regulations affect you?

In 2007 The Money Laundering Regulations were extended to two new business sectors: Trust or Company Service Providers ( TCSPs) and Accountancy Service Providers (ASPs). At the end of July 2008 HMRC issued revised guidance to reflect feedback from businesses in discussions with HM Treasury, which effectively means that interim managers will only fall within the scope of the regulations as TCSPs when they provide their services to clients as director, company secretary etc to businesses operating in high risk areas. Interim managers will fall within the scope of the regulations as ASPs ( Accountancy Service Provider) when they provide accountancy services to clients.

Interim managers and interim directors are strongly advised to refer to the revised guidance as non-compliance is a criminal offence.

Note that it is your responsibility to decide whether your activity falls within the scope of the Money Laundering Regulations.

 

Agency Workers Regulations ("AWR")

These came into effect on 1st October 2011 and interim managers can come within their scope. As there has been quite a lot in the media about how different classes of "Agency Workers" will be affected we are asked our legal advisors, Blake Lapthorn, to provide a legal opinion. They have provided a nice clear opinion which you can find here. It is well worth reading this as it will help you deal with Client queries. 

 

To register your interest in joining the network go to  "Register for membership "  within this membership section.