Hello, I wonder if anyone can provide some guidance.
I've just received a contract with the following two clauses:
A: "The Company(The recruitment agency )shall be entitled to withhold from any payment due to the Supplier under this Agreement any sum that it may in its reasonable opinion be or become liable to pay in respect of
income tax or national insurance relating to Consultants or workers supplied via the Supplier including
any such liability under the Intermediaries Legislation and shall release such sum to the Supplier on
provision of, and to the extent of, such evidence from Supplier as the Company shall reasonably
require that such liability shall not arise."
B: "You agree that you shall not prior to the expiry of 6 (six) calendar months after the termination or expiry of the Agreement, whether by yourself or with any other person in any capacity whatsoever directly or indirectly
induce (or seek to induce) to leave or cease performing service(s) for any member of the Client, any contractor
or employee of any member of the Client with which or whom you had material contact in the course of your
supply of the Services at any time in the six months prior to such termination or expiry."
Questions are:
1) Regarding the section A, Will it impact my IR35 status, either positively or negatively? Shouldn't the tax liabilities and NI be left to the contractor rather than the agency?
2) Regarding the section B, What it says doesn't make sense to me. Could you help me understand this please?
Thanks
I've just received a contract with the following two clauses:
A: "The Company(The recruitment agency )shall be entitled to withhold from any payment due to the Supplier under this Agreement any sum that it may in its reasonable opinion be or become liable to pay in respect of
income tax or national insurance relating to Consultants or workers supplied via the Supplier including
any such liability under the Intermediaries Legislation and shall release such sum to the Supplier on
provision of, and to the extent of, such evidence from Supplier as the Company shall reasonably
require that such liability shall not arise."
B: "You agree that you shall not prior to the expiry of 6 (six) calendar months after the termination or expiry of the Agreement, whether by yourself or with any other person in any capacity whatsoever directly or indirectly
induce (or seek to induce) to leave or cease performing service(s) for any member of the Client, any contractor
or employee of any member of the Client with which or whom you had material contact in the course of your
supply of the Services at any time in the six months prior to such termination or expiry."
Questions are:
1) Regarding the section A, Will it impact my IR35 status, either positively or negatively? Shouldn't the tax liabilities and NI be left to the contractor rather than the agency?
2) Regarding the section B, What it says doesn't make sense to me. Could you help me understand this please?
Thanks
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