Agency asking for a 'declaration of compliance'

[Darkling]

My agency have asked me to sign this alongside my latest extension. I'm in the private sector. The contract terms and working practices have been assessed as outside IR35 by Qdos.

Dear Sir / Madam

Please acknowledge receipt of this document and confirm your agreement with the foregoing declaration by signing below and sending back to us by return. This document needs to be completed and signed by a shareholder with a greater than 5% shareholding in <MyCo> Ltd.

As the Intermediary for the worker <Me>, <MyCo> Ltd declares that the remuneration receivable by the worker in consequence of providing the services constitutes employment income of the worker apart from and other than in consequence of Chapter 7 of Income Tax (Earnings and Pensions) Act 2003.

Strictly speaking, 'the worker' doesn't receive any remuneration in consequence of providing the services (I receive an ongoing salary which isn't linked to any particular engagement, and also happen to be a shareholder who is entitled to dividends when declared by the board), but I'm still inclined to tell them it's none of their business and see if they're willing to lose the contract over it.

Any other thoughts?

[SueEllen]

I wouldn't sign it.

I've had contracts altered to remove such sh*t as the contracts are clearly outside IR35.

[mike67]

Agreed, you do not want to sign this as it is basically saying that you will treat 100% of the fees you charge as PAYE, making it pointless to have a company. Sounds like a lazy agency which has a standard contract for everyone. Chances are if you dig in your heels they will prefer to get you on contract rather than missing out on the work. Tell them that they are contracting with your limited company and it is none of their business how you decide to run it in terms of wages and dividends.

[Fred Bloggs]

Copy and paste into an email and send -

Dear Agency, as the director of MyCo Ltd, I can assure you that MyCo Ltd is operated in accordance with UK law in all respects including remuneration of its consultants.

Regards.

Fred Bloggs.

[BrilloPad]

Dear Agency, as the director of MyCo Ltd, I can assure you that MyCo Ltd is operated in accordance with UK law in all respects including remuneration of its consultants.

Regards.

Fred Bloggs.

And you have a >5% shareholding?

If you want to be sarcy ask them to confirm the shareholding via companies house...

[SueEllen]

And you have a >5% shareholding?

If you want to be sarcy ask them to confirm the shareholding via companies house...

The law doesn't stipulate that directors of a closed company must have any share holding in the company they are director off, or that they get paid in any type or form.

The law also doesn't stipulate that only company directors must sign contracts with agencies. It is any person the company authorises.

When I had another director I use to deliberately get them to sign my contracts to make such a point.

This is why sh*t like that should be removed as it is none of the agency's business how your company is run.

If the agency doesn't like Fred's email simply ask them what Act of Parliament or statutory instrument says the agency must request this information.

[Fred Bloggs]

Spot on SE. And just send the same email again in font size 75 red bold underlined.