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So what constitutes a legally binding outside IR35 notification?

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    So what constitutes a legally binding outside IR35 notification?

    Left client yesterday. Working for consultancy on site at PS client. Agency is actually the recruitment division of the consultancy. Since yesterday they've been trying to convince its all ok to come back.

    Today, every contractor at the consultancy received this email from the recruitment arm of the business, which was a bit out of the blue:-

    Public Sector worker confirmation of your Tax status under IR35

    Following the communications sent to your Personal Service Company on 24/02/2017 explaining the way in which reforms to IR35 will affect workers who engage through a PSC on assignments where your services are delivered to a Public Sector end-user organisation, we wrote to each end-user client whose responsibility it is to determine the IR35 status of each assignment.

    Based on the client’s assessment against HMRC criteria and information that you may have been asked to provide, your assignment through your Personal Service Company (PSC) with the organisation you have been assigned to, has been determined as:

    ‘Off-Payroll’ under IR35 therefore not taxable under the reform to the legislation

    As the company that makes payments to your PSC, under the new IR35 rules, we will:
    ·Make a payment to your PSC for the full amount within your invoice, subject to verified timesheets, in line with our contractual agreement.

    Things that concern me about this:-

    1. Two weeks ago they were absolutely clueless and sudddenly its all sorted.
    2. No-one has asked me for any information whatsoever so I wonder just how much assessing the PS client has done.
    3. The tool is not even released yet.
    4. The agency/recruitment part have a vested interest in ensuring not all the contractors up and leave.

    Bottom line - what is the official method for notification that you are outside? Should it come from agency, client, or end PS client? Is this sort of email legally binding? (I suspect not)
    Rhyddid i lofnod psychocandy!!!!

    #2
    If it smells like tulip.......
    The Chunt of Chunts.

    Comment


      #3
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

      Comment


        #4
        What does that even mean? Couldn't be more bollocks if you stuck it in a pouch and hung it between the hind legs of a bull.

        Comment


          #5
          Originally posted by psychocandy View Post
          Bottom line - what is the official method for notification that you are outside? Should it come from agency, client, or end PS client? Is this sort of email legally binding? (I suspect not)
          Get it in the contract with what it means (in words that you understand), and what happens if they are wrong. If the agency are happy to do that then great; if they aren't then there's the answer to the question of whether this means anything or not
          First they ignore you, then they laugh at you, then they fight you, then you win. But Gandhi never had to deal with HMRC

          Comment


            #6
            Yep I was thinking that. After all "agency" can say what they want, doesn't mean that if it all goes pear shaped afterwards they wont walk away from it if they can.

            I am a little dubious I must admit...

            What is needed is a way to "force" the agency/client to commit. Isnt there a way to request and they have to respond within 30 days?
            Last edited by psychocandy; 2 March 2017, 02:08.
            Rhyddid i lofnod psychocandy!!!!

            Comment


              #7
              Originally posted by psychocandy View Post
              What is needed is a way to "force" the agency/client to commit. Isnt there a way to request and they have to respond within 30 days?
              If the agency ask the question, the client must respond within 30 days.

              You don't need to force the agency to commit by making an assessment, though, you just need to get it in the contract that:

              a) The client falls inside or outside the scope of the new legislation
              b) If the client falls inside, that the contract is inside or outside IR35

              Then you can make the decision about whether to accept the contract or not. If the same information is contained in an email trail then that would help a little bit if they won't get it in the contract. And make sure you don't have one of those silly "we can deduct any lawful taxes" clauses that some agencies like.
              First they ignore you, then they laugh at you, then they fight you, then you win. But Gandhi never had to deal with HMRC

              Comment


                #8
                Originally posted by RonBW View Post
                If the agency ask the question, the client must respond within 30 days.

                You don't need to force the agency to commit by making an assessment, though, you just need to get it in the contract that:

                a) The client falls inside or outside the scope of the new legislation
                b) If the client falls inside, that the contract is inside or outside IR35

                Then you can make the decision about whether to accept the contract or not. If the same information is contained in an email trail then that would help a little bit if they won't get it in the contract. And make sure you don't have one of those silly "we can deduct any lawful taxes" clauses that some agencies like.
                A not unlikely scenario for you:

                Agency claims that it's outside, even puts it in writing to you that it's the case (not talking about Andy, he's pretty clued up on this).

                You start, at which point you find that end client advised that the gig is inside to the agent.

                While the agency have a contract with you that stipulates outside and they'll pay you gross + VAT, they are bound by the regs to pay you net.

                May is going to be an utter shambles.
                The greatest trick the devil ever pulled was convincing the world that he didn't exist

                Comment


                  #9
                  Originally posted by LondonManc View Post
                  May is going to be an utter shambles.
                  She already is ...

                  Comment


                    #10
                    Originally posted by RonBW View Post
                    If the agency ask the question, the client must respond within 30 days.
                    31 days. But the legislation isn't in force yet, so there is no obligation on the client to respond until it is.

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