Small Company and SDS

[merseygrit]

I've been offered role via an agency for a small consultancy working on a project for a multinational.

The agency has told me in writing that no SDS is needed as the consultancy is classed as small within the legislation. I've asses the SOW and ways of working and I am satisfied that it's outside-IR35. My questions are:
1. What is the company isn't actually "small" and an SDS is required, who's on the hook?
2. What about the multinational client. Don't they need to be considered?
3. What if the multinational client decide they want an SDS, who's on the hook?

[northernladuk]

Rules around this have been VERY well documented all over the place. You shouldn't need to ask this. It's explained in a brand new stickie at the top of the stickies section right above this post for a start. It's been covered in great detail in many other posts in the IR35 sections of the forum and endless articles have been written on it elsewhere on the web.

If you are struggling with all that then use the forum search method using google. In google type <keywords> site:forums.contractoruk.com Use keywords like IR35 small company or IR35 foreign etc.

It's all there and has been for a good while now.

Being a contractor is about running your business and learning what is happening in your market so some basic research in to what you do shouldn't be too hard.

I have to ask, if you are struggling to find this information out then are you really capable of assessing your own IR35 status? Small companies can be a nightmare as they could easily be 'all hands to the pump' and often aren't big enough or mature enough to have dedicated pieces of work without requiring some input in to other areas outside SoW. Contract might look OK but you've got to be wary of working practices going forward. Either way, get a specialist to review it just like we did in the old days for every contract and make sure your insurances are up to date.

[northernladuk]

Also search for IR35 consultancy. It's possible, depending on the type of work you are going to do that the end client might have to assess. Again it's been well covered.

[northernladuk]

To see how the searches work and get the answers the OP needs here are the results

Small company SDS
https://www.google.com/search?q=smal...client=gws-wiz

Ir35 end client consultancy
https://www.google.com/search?q=Ir35...client=gws-wiz

Ir35 international determination
https://www.google.com/search?q=Ir35...client=gws-wiz

[eek]

NLUK has missed the most important question here which is who is running the (overall) project? Is it the consultancy or is it someone at the end client.. That question really determines who is responsible for the SDS...

[jamesbrown]

Agree with eek. Is this a fully contracted out service delivered by the consultancy or not? I doubt it is (if you are working closely with the multinational, it won’t be), in which case the end client for the purposes of Chapter 10 is the multinational.

[northernladuk]

NLUK has missed the most important question here which is who is running the (overall) project? Is it the consultancy or is it someone at the end client.. That question really determines who is responsible for the SDS...

Thought I'd covered that, albeit not quite as succinctly as you did, in post three and the client/consultancy search.

[eek]

Thought I'd covered that, albeit not quite as succinctly as you did, in post three and the client/consultancy search.

The thing is it doesn't matter what work you are doing - it's the bigger picture of the overall project that matters and even then that could come down to the planned long term business relationship between the consultancy and the end client.

So it's incredibly important that you don't accept a determination and ask questions.