DWP / Capita Contract: IR35 consideration
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    Default DWP / Capita Contract: IR35 consideration

    I have been offered a IT contract between my limited company. I am currently reviewing the contract. In the contract between my limited company and Agency, DWP is referenced as End Client's Customer and Capita as end Client.

    1) The agency keep saying it is outside IR35. So I am going to ask the written confirmation of the IR35 assessment. Is this confirmation should be by end client's customer (DWP) or by end client (Capita)?

    2) Or is this contract doesn't fall into public sector so they dont have to make IR35 and the total responsibility of IR35 assessment falls to me?

    3) And it seems from the initial conversation, practices like provision of own equipment like laptop will be there.

    Any insight is highly appreciated. I have been searching for DWP in forums and didnt manage to find any recent posts after the IR35 changes in public sector.

    Thank you
    Kav

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    If your contract is with Capita it should be them you are searching for. Try this.
    https://www.google.co.uk/search?clie...k1.Sx4V1do0Jb0

    I'm very surprised the Capita gigs are outside.
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    Quote Originally Posted by northernladuk View Post
    If your contract is with Capita it should be them you are searching for. Try this.
    https://www.google.co.uk/search?clie...k1.Sx4V1do0Jb0

    I'm very surprised the Capita gigs are outside.
    I'm bloody amazed, if it's a CLOne contract... Capita are the link to DWP, since they act as the RPO (look it up) for many HMG departments including DWP, this sounds to me like another sub-agency is dealing with Capita. In which case, don't believe a word they say.

    OP - Get it in writing with the reasons for the determination.
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    @northernladuk and @malvolio Thank you.
    http://forums.contractoruk.com/publi...6th-april.html was in that link you posted here and useful. Hopefully I will get a response from him.

    Yes. My contract is CL1. And I will stick with getting written confirmation that they made the IR35 assesment and the confirmation that it falls outside IR35.

    The tricky part for me here is that I read somewhere it doesnt matter how many intermediaries are there, what actually happens at the end client will be the main factor during an HMRC enquiry to decide the IR35 status. So who is supposed to make the IR35 assessment here?

    Even though Capita is mentioned as the end client, are they actually end client in my case or is it DWP who is going to be treated as end client?

    Since there is no information provided to me by agency about what kind of contract exists between 1) My direct agency and Capita or 2) Capita and DWP.

    Possibility 1:
    If Capita is actually treated as end client, the contract will not be treated as public sector, so even if I keep a written confirmation of IR35 assessment, final responsiblity of proving it as outside IR35 will fall on me.

    Possibility 2 :
    If DWP is treated as the actual end client (regardless of the fact they are mentioned as end client's customer), then the full responsibility of IR35 assessment will fall to DWP and tax the reduction has to be done by the intermediary.

    Possibility 2 is not problematic to me as a contractor because I won't sign it unless I have the written confirmation as outside.

    Possibilty 1 is problematic to me because even if I have written confirmation, it wont be sufficient and I have to make further enquiries about working practices and make sure they reflect it as outside IR35 too

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    It depends hugely on your role with the client and the determination is primarily defined by why you are at the end client, if they are a PS body. If you are there as a manpower replacement, filling a role that would normally be done by one of the client's people, including project-based work, then you will be inside. If you are working on delivering something - business solution, a fully outsourced support contract, building a new turnkey product, whatever, they you may well be outside.

    If the latter you shouldn't really be on CL1, which is for the provision of manpower replacements, hence my original comment. Bits of Capita (don't assume that Capita is one company: it is many separate, and often competing, divisions) do supply outsourced support services for example, and what part of Capita you are contracting with and knowing what your job is will be highly relevant to the final determination
    Blog? What blog...?

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