IR35 liability from April 2021

[djones123]

What new terms? And terms don't cover working practices. They can write down what they want but if they decide they don't really want or sub, or to D&C you as they say fit you are screwed. This is why the contractor doing the CEST is an utter waste of time.

But you were outside before? So you are in a straight outside to inside situation? That not worry you?


If it's a big firm then it's likely they use an agent and don't have to. The agent does it. Is there no agent in this chain?

No, there is no agent involved.

Client told me that my current contract is outside so i just need to do CEST (for extension), HR will discuss the CEST answers with my manager and then confirm if i can carry on working through my ltd company.

In my situation, CEST outcome depends on one question, if a substitute can be rejected by client. If i say no then i am inside otherwise outside. As per my knowledge, substitute can be rejected if he is not fully qualified to carry out the duties.

Client should get the contract and working terms reviewed by third party company and then make a final decision. Instead their focus is on CEST outcome at the moment.

[The Spartan]

What happens if you don't get a SDS from the client from April?

[northernladuk]

No, there is no agent involved.

Client told me that my current contract is outside so i just need to do CEST (for extension), HR will discuss the CEST answers with my manager and then confirm if i can carry on working through my ltd company.

Yep. Definitely inside.

In my situation, CEST outcome depends on one question, if a substitute can be rejected by client. If i say no then i am inside otherwise outside. As per my knowledge, substitute can be rejected if he is not fully qualified to carry out the duties.

The substitute should be equally skilled and also brought up to speed on your time and your money as well. A lot of people, including clients forget this. You think they client might accept it but when the situation appears and they consider how this is achieved there is very little in it for them to provide dual run and pay you while you are upskilling another contractor. I substitute needs to not only be qualified but experienced to pick up from where you left off seemlessly, not have another week getting up to speed like he was new.

Client should get the contract and working terms reviewed by third party company and then make a final decision. Instead their focus is on CEST outcome at the moment.

And they realise if anything goes wrong they are on the hook?

If you've done all you can to do a fair CEST, and believe they have carried out their diligence on it then nothing much else you can do. Even if liability lies with them I'd be speaking to QDOS about it with one possibility that you still get a review and buy the insurance if you are so worried.

I can't remember now but does CEST ask about you fixing stuff at your cost? What did you reply to that? How can you answer questions about D&C when you don't know what the client will ask if they need to? Have you ever done work off scope of the SoW you've got so already been D&C'd? If your client manager asked you to do something and you said no what would they say?

[djones123]

I can't remember now but does CEST ask about you fixing stuff at your cost? What did you reply to that? How can you answer questions about D&C when you don't know what the client will ask if they need to? Have you ever done work off scope of the SoW you've got so already been D&C'd? If your client manager asked you to do something and you said no what would they say?

I answered that i will fix it in my usual hours at my usual rate. This is how i have been working with the client in last 6 months.

[The Spartan]

After establishing that two of my clients don't have to give me a SDS, my third client has come back to me and explained that they come under the small companies exemption. Their advice is that it means I'm still responsible for assessing whether I'm inside or outside IR35 as per the norm.

[djones123]

My end client has confirmed that my contract status is outside 'IR35'. I was asked to sign the following letter which i did;

-------------------------------------
Ref: Confirmation of Worker Status
Dear xxx,
Thank you for forwarding your certificate generated by the Government site Check for Status for
Tax.
I can confirm that we are in agreement that the intermediaries legislation (IR35) does not apply.
Your invoices will therefore be paid in full.
Please sign a copy of this letter to indicate your acceptance of these terms and return to me with
the other documents enclosed.
---------------------------------------

I have one question here, who is responsible for doing CEST? In my situation, client asked me to do the CEST which was then reviewed by my manager and later i was issued the outside status. Is this normal or client should be doing the CEST?

Also, when i did the CEST i didn't put my company's name on it, does it matter? Just to be on the safer side can i do the same and this time add my ltd company name on the pdf result ?

Thanks

[PerfectStorm]

For what it's worth, my agency filled in the CEST this week and sent me the results. Some of the answers are a bit bold (I'm not sure I do exactly get to determine how the work is done, a lot of the time), but on their head be it. At least it was determined, and in a positive fashion.

Also had the pleasure of turning down lots of inside/umbrella/PAYE work over the past month or two - you won't find me enabling such behaviour. Stand firm, chaps.

[malvolio]

I answered that i will fix it in my usual hours at my usual rate. This is how i have been working with the client in last 6 months.

OK... So you carry no financial risk for substandard work and charge them to fix it. And you're still outside IR35...?

I'll leave at this point. Good luck.