Agency - Working woutout a Contract/IR35 backlog?

[northernladuk]

I've got advice from QDOS also, in case this helps anyone else:

'Yes, the client has to issue the SDS down the chain, and similarly they should give an indication of IR35 status when advertising the role so you are entitled to confirm whether the engagement will be Inside or Outside - I would recommend double checking with the agency if you can expect an SDS but if you do not receive one this wouldn't be your liability'

Also from Qdos:

'I think they are warning that the status is still subject to change without a valid SDS and so it may cost you in terms of the PAYE/NIC deductions if it was founds Inside IR35

but the liability is not with you as a contractor after the 6th april'

QDOS are probably right but I'll bet it won't be long before someone in a similar situation signs on that advice and it all goes tits up.

[GalContractor2873]

I've realised this and refused to sign the contract until they can actually issue me with a valid SDS document.

[Lance]

I've realised this and refused to sign the contract until they can actually issue me with a valid SDS document.

you may not get one yet. They do have to provide one, but not until the first payment from client to agency. Which could be weeks/months away.
I think you've done all you can do, so sign up and get working.

The very worst case is they class you as inside after you've already started. That will cost you tax and NI but you can walk immediately if you that's what you desire.
It's most likely they are just getting to grips with the new rules and it will all be fine. And they will now have more respect for you as you stood your ground where many others would capitulate and cry later.

[GalContractor2873]

You're right. I don't think they can actually produce one because they can't demonstrate reasonable care.
Its a thankfully very short contract. Ends start of May in any case. And they're paying at the end. So no SDS then. The Head of Compliance at the recruiters will give me a buzz tomorrow and I'll hear what their position would be on this - would be good to know for the future. So let's see tmrw.

Sucks to have to stand ground. They're getting commission!

[northernladuk]

Sucks to have to stand ground. They're getting commission!

Not while you aren't working they aren't.

[GalContractor2873]

So Agency said that the literaly print-out of the CEST tool would be the replacement for an SDS and there is no other template, which isn't true. Head of Compliance was pretty sheepish and at the recruitment agency would put her name behind it. It was interesting that she said that liability is borne by the end-client. I guess something to consider that agencies don't want to issue because they either don't know the IR35 status or they havenn't really assessed it etc,

[Lance]

So Agency said that the literaly print-out of the CEST tool would be the replacement for an SDS and there is no other template, which isn't true. Head of Compliance was pretty sheepish and at the recruitment agency would put her name behind it. It was interesting that she said that liability is borne by the end-client. I guess something to consider that agencies don't want to issue because they either don't know the IR35 status or they havenn't really assessed it etc,

thing is the agency are not responsible for making the SDS so all they can do is pass it on. It is totally with the end client.
I would have thought that a CEST saying outside, and an email saying this is the determination is an SDS though? There isn't a special template as far as I'm aware.

[GalContractor2873]

https://www.easybuilduk.com/wp-conte...te-Example.pdf,

There ought to be also some wording.. https://www.contractoruk.com/private...t_contain.html

also the CEST Tool doc print out doesnt contain any reference to any company. The end client didn't have any idea what an SDS was and had looped me in expecting me to work already without a signed contract..

[Lance]

https://www.easybuilduk.com/wp-conte...te-Example.pdf,

There ought to be also some wording.. https://www.contractoruk.com/private...t_contain.html

also the CEST Tool doc print out doesnt contain any reference to any company. The end client didn't have any idea what an SDS was and had looped me in expecting me to work already without a signed contract..

that's a useful example of what an SDS might be, but that link contains this.

HMRC requirements for a Status Determination Statement

As to the second part of your question, HMRC states that a compliant SDS must include two things –

• the deemed IR35 status (the decision); and
• the reasons which led to the above decision.

so a copy of the CEST with an email saying you're outside fits that exactly

[northernladuk]

https://www.easybuilduk.com/wp-conte...te-Example.pdf,

There ought to be also some wording.. https://www.contractoruk.com/private...t_contain.html

also the CEST Tool doc print out doesnt contain any reference to any company. The end client didn't have any idea what an SDS was and had looped me in expecting me to work already without a signed contract..

What a horrible situation you've got caught in. We did envisage there would be a right mess when April hit last year but this appears to be the first thread where a client really hasn't gotten to grasp of the situation. I'm very surprised.