Contract has been retrospectively declared inside IR35

[Lance]

It's not the agency's fault so you can't sue them.

Indeed it's not their fault. But if my company has a contract to deliver services to the agency for a fee, and their client changes the terms of payment, it's only the agency my company can pursue for the missing payment.

[dsc]

What other recourse options are there for this?
Sue the agency?
What's to stop any customer shafting any supplier by simply deciding at the last minute before payment to 'declare it as inside' just to be total arseholes? Could a customer of WiPro for example do this, and if they did what would WiPro's recourse be?

There is presumably some wording in the legislation that limits when an SDS can even be used. I don't know the legislation very well (at all).

Exactly this, what if you carry on for 6 months and at the end they say you know what, everything was inside all the time. This is an absolute joke, it's shouldn't be possible to change the determination retrospectively, perhaps then clients would actually give a sh*t about doing it properly.

[eek]

Indeed it's not their fault. But if my company has a contract to deliver services to the agency for a fee, and their client changes the terms of payment, it's only the agency my company can pursue for the missing payment.

It doesn't change the terms of the contract to the intermediary. It does however create a whole pile of additional paperwork that the intermediary now needs to deal with.

[ladymuck]

Weekly payment doesn't solve anything if the end client changes your status 3 months later.

Likewise an initial SDS statement doesn't help - as that was covered by "the agency appeals the outside SDS statement" scenario HMRC discussed during the workshops.

Basically accept an outside IR35 role but be careful.

We really should check if Innoaccounts / Offpayroll have a flag for "determination changed to Inside IR35".

I thought the SDS had to be issued before first payment was made (hence my thoughts around weekly payments) but I had forgotten that a client may change their mind later.

Good suggestion for Innoaccounts / Offpayroll. If lots of us suggest it to them they may add it?

[eek]

I thought the SDS had to be issued before first payment was made (hence my thoughts around weekly payments) but I had forgotten that a client may change their mind later.

Good suggestion for Innoaccounts / Offpayroll. If lots of us suggest it to them they may add it?

First payment from the end client to the agency, not first client from the agency to the contractor (which may be a factored payment on submission of invoice to end client).

[ladymuck]

First payment from the end client to the agency, not first client from the agency to the contractor (which may be a factored payment on submission of invoice to end client).

Ah... yes. Me and my lousy memory.