Well I've spoken to HMRC
Given the scenario - contract was supposedly outside, worker has now left and I have an SDS saying inside - the answer was go back to the worker and reclaim the money.
Not something I suspect anyone would want to hear.
In reality it does seem that the PAYE debt should be being paid by the deemed employer and the recovery mentioned above is a separate process to ensure the agency is not left out of pocket paying the PAYE tax bill but I'm not 100% sure how you (as the poor contractor / worker) would go about ensuring the feepayer actually pays the bill.
Mind you I can see why your agency is annoyed because according to ESM10031 - Employment Status Manual - HMRC internal manual - GOV.UK (www.gov.uk) as the debt is prior to April 2021, the debt doesn't move up and down the chain it sits with the feepayer.
Sorry for the news not being great - let's hope that WTT is of use and if not see what Merkel say (I'm wouldn't recommend ETC for reasons connected with Felicitas and the mess they seem to have made there).
Given the scenario - contract was supposedly outside, worker has now left and I have an SDS saying inside - the answer was go back to the worker and reclaim the money.
Not something I suspect anyone would want to hear.
In reality it does seem that the PAYE debt should be being paid by the deemed employer and the recovery mentioned above is a separate process to ensure the agency is not left out of pocket paying the PAYE tax bill but I'm not 100% sure how you (as the poor contractor / worker) would go about ensuring the feepayer actually pays the bill.
Mind you I can see why your agency is annoyed because according to ESM10031 - Employment Status Manual - HMRC internal manual - GOV.UK (www.gov.uk) as the debt is prior to April 2021, the debt doesn't move up and down the chain it sits with the feepayer.
Sorry for the news not being great - let's hope that WTT is of use and if not see what Merkel say (I'm wouldn't recommend ETC for reasons connected with Felicitas and the mess they seem to have made there).
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