Long-time lurker and grateful for any advice or pointers on what to read/ resources:
My consultancy company 'specialist-advice' - SAco for short (which was also my employer at the time) is owed money from an agency from back in 2017 when the IR35 changes impacted public sector. SAco was contracted on very flexible terms to an agency (let's call it Agency-crappo'), which sub-contracted the resource to Capita, who sub-contracted it again to a Govt dept as end client. When SAco did not get paid an invoice by 7th April 2017, an enquiry was raised with Agency-crappo and they advised that they were unable to pay SAco and would only pay the person working on the job directly (which was me), because the end client Govt Dept had unilaterally deemed the appointment inside IR35. This came a surprise to SAco, as no notice of any contractual changes were notified from Agency-crappo as required under the passing contract - there had been no communication whatsoever. SAco immediately suspended work on the contract and walked away as there were other clients on the books the same week (NHS and a charity) and plenty of work to fill the gap.
5 years on I am seeking to get payment for SAco - I am aware of the legal time for contracts is 6 years.
Given that Agency-crappo did not provide any information or any form of SDS in writing, I have had to obtain info regarding the blanket assessment from the end client using subject information requests. Info forwarded has confirmed that the assessment was blanket and that they did no liaison whatsoever with SAco (so no reasonable care was taken for the SDS). SAco has conducted the CEST assessment unilaterally and the work is deemed to have fallen outside IR35.
Having contacted Agency-Crappo, they have stated that they are happy to pay SAco the monies owed directly, but insist that they must deduct the national insurance and tax due to the end client's assessment etc and so they want my own NI details etc. I am confused whether SAco has any ability at all to contest the blanket assessment this far down the line with the Govt Dept - or how to do this without any formal SDS paperwork to dispute? Alternatively, I have read somewhere that there is a HMRC form that SAco can fill out to reclaim the monies wrongly deducted (due to lack of a formal SDS/ lack of reasonable care) should payment net of NI etc be accepted- but i can't find any information about this, and the small accountant SAco uses has no idea whatsoever and has suggested a rather expensive IR35 specialist- which may not be VFM.
I should be most grateful for any advice on how to proceed - or experiences - thank you.
My consultancy company 'specialist-advice' - SAco for short (which was also my employer at the time) is owed money from an agency from back in 2017 when the IR35 changes impacted public sector. SAco was contracted on very flexible terms to an agency (let's call it Agency-crappo'), which sub-contracted the resource to Capita, who sub-contracted it again to a Govt dept as end client. When SAco did not get paid an invoice by 7th April 2017, an enquiry was raised with Agency-crappo and they advised that they were unable to pay SAco and would only pay the person working on the job directly (which was me), because the end client Govt Dept had unilaterally deemed the appointment inside IR35. This came a surprise to SAco, as no notice of any contractual changes were notified from Agency-crappo as required under the passing contract - there had been no communication whatsoever. SAco immediately suspended work on the contract and walked away as there were other clients on the books the same week (NHS and a charity) and plenty of work to fill the gap.
5 years on I am seeking to get payment for SAco - I am aware of the legal time for contracts is 6 years.
Given that Agency-crappo did not provide any information or any form of SDS in writing, I have had to obtain info regarding the blanket assessment from the end client using subject information requests. Info forwarded has confirmed that the assessment was blanket and that they did no liaison whatsoever with SAco (so no reasonable care was taken for the SDS). SAco has conducted the CEST assessment unilaterally and the work is deemed to have fallen outside IR35.
Having contacted Agency-Crappo, they have stated that they are happy to pay SAco the monies owed directly, but insist that they must deduct the national insurance and tax due to the end client's assessment etc and so they want my own NI details etc. I am confused whether SAco has any ability at all to contest the blanket assessment this far down the line with the Govt Dept - or how to do this without any formal SDS paperwork to dispute? Alternatively, I have read somewhere that there is a HMRC form that SAco can fill out to reclaim the monies wrongly deducted (due to lack of a formal SDS/ lack of reasonable care) should payment net of NI etc be accepted- but i can't find any information about this, and the small accountant SAco uses has no idea whatsoever and has suggested a rather expensive IR35 specialist- which may not be VFM.
I should be most grateful for any advice on how to proceed - or experiences - thank you.
Comment