Public body didn't know about IR35 - can they put it all on the contractor now?

[northernladuk]

This.

The contractor has already paid corporation tax and dividend tax and is unable to reclaim them, at least in full. So there's no scenario in which it would be just or appropriate for him to pay the full PAYE taxes. They've blown it and the responsibility is on them.

But, they need to be asked why they think anything is do. Hopefully the contractor has a contract review or a CEST result or something showing he's outside. At this point, it's in everyone's interest to find him outside, then there's nothing due.

If his contract says there is a right of substitution, he can take them to CEST and say, 'All you have to do is confirm in CEST that you would have agreed to abide by the contract and accept a substitute. If we do that, this is outside and there is no problem here.'

Hard to imagine any of this has been done if the OPs original statement is anywhere close. From the description it appears both parties have an almost non existsant awareness of IR35 so difficulty to see thst any diligence has been done. Without it it's almost impossible to be outside.

As usual, we are missing all the details, so hard to say.

[eek]

Hard to imagine any of this has been done if the OPs original statement is anywhere close. From the description it appears both parties have an almost non existsant awareness of IR35 so difficulty to see thst any diligence has been done. Without it it's almost impossible to be outside.

As usual, we are missing all the details, so hard to say.

Which is why it's important to emphasis that all the costs need to be borne by the end client (as my second link points out) - as that will instantly change his viewpoint.