Wanted to discuss a few points around IR35 indemnity clauses in contracts (somewhat related to this thread).
I've previously worked on outside IR35 contracts previously where I was liable for the IR35 risk and took out IR35 insurance to cover any possibility of an HMRC investigation down the line (with Qdos if I recall).
I'd also worked with public sector clients outside IR35 post-April 2018 where they made the determination and accepted IR35 liability.
I'm now looking at a new contract due to start after the April 6th changes this year. The client has issued an outside IR35 SDS however in the contract there are clauses indemnifying the client and agency against any costs associated with investigation and/or penalties owed by the client in case the SDS is challenged by HMRC.
My first thought is that these clauses are unfair, but if they won't remove them and I could get insurance against the potential costs I might just suck it up. I'm wondering:
1) Are others seeing these kinds of clauses appear in contracts?
2) Has anyone found insurance to cover this kind of thing? Qdos TLC35 insurance I don't believe would (as it's the Client's liability rather than my company's). Kingsbridge seem to offer something that might, though the blurb only mentions covering costs of the fee payer - I'm going to confirm if it also covers costs incurred by the client
Thanks.
I've previously worked on outside IR35 contracts previously where I was liable for the IR35 risk and took out IR35 insurance to cover any possibility of an HMRC investigation down the line (with Qdos if I recall).
I'd also worked with public sector clients outside IR35 post-April 2018 where they made the determination and accepted IR35 liability.
I'm now looking at a new contract due to start after the April 6th changes this year. The client has issued an outside IR35 SDS however in the contract there are clauses indemnifying the client and agency against any costs associated with investigation and/or penalties owed by the client in case the SDS is challenged by HMRC.
My first thought is that these clauses are unfair, but if they won't remove them and I could get insurance against the potential costs I might just suck it up. I'm wondering:
1) Are others seeing these kinds of clauses appear in contracts?
2) Has anyone found insurance to cover this kind of thing? Qdos TLC35 insurance I don't believe would (as it's the Client's liability rather than my company's). Kingsbridge seem to offer something that might, though the blurb only mentions covering costs of the fee payer - I'm going to confirm if it also covers costs incurred by the client
Thanks.
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