Originally posted by eek
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Advice on outside IR35 but first payments have TAX&NI deducted
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Can I clarify on this ? This was my understanding on SDS.
iI any party in the supply chain fails to pass the SDS to the next party in the chain, then they will become the ‘fee-payer’, responsible for deducting the worker’s tax liabilities, and paying HMRC.
In that case if the agency have not passed on to myself but don't deduct tax/NI is it not deemed they are the fee payer?Comment
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Strictly, the SDS should be passed down the supply chain (by the time the first payment has been made by the end client, which could be some time after YourCo receives a payment), but this only becomes a material risk for the supply chain above YourCo when tax is underpaid, and that sounds like it isn't the case here. In other words, the agent may have told you a tall story about it being outside, but it isn't and there is a very strong asymmetry in enforcement action here because the basis for enforcement by HMRC is their being out of pocket and they aren't. You could try to argue the deductions were unlawful, but you won't get very far. Sucks, but there you go.Comment
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Originally posted by jayjay69 View PostCan I clarify on this ? This was my understanding on SDS.
iI any party in the supply chain fails to pass the SDS to the next party in the chain, then they will become the ‘fee-payer’, responsible for deducting the worker’s tax liabilities, and paying HMRC.
In that case if the agency have not passed on to myself but don't deduct tax/NI is it not deemed they are the fee payer?
Where HMRC said to me (the feepayer / agency) - go back to the poor contractor and reclaim the money from them.merely at clientco for the entertainmentComment
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Basically the agent told you outside and you think it's outside.
But the agent lied and you're inside really.
That's it. Be thankful that you've started paying tax and NI from the beginning, you might have had a large bill otherwise."I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
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Originally posted by eek View Post
Let's go back to the conversation I had with HMRC last week
Where HMRC said to me (the feepayer / agency) - go back to the poor contractor and reclaim the money from them.Comment
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Originally posted by cojak View PostBasically the agent told you outside and you think it's outside.
But the agent lied and you're inside really.
That's it. Be thankful that you've started paying tax and NI from the beginning, you might have had a large bill otherwise.Comment
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Originally posted by jayjay69 View Post
That is one of the plus sides no hefty bill and I am still getting paid regardless although if they were honest from the start I would have negotiated a better rate.Comment
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Originally posted by jayjay69 View PostSorry worded that incorrectly on the inside part, this was a completely different contract that switched to inside after being out when I renewed. The point I was making is that I was glad to be offered outside in a market that was inside...
Yep the contract states until June 2022...
How long have you been contracting if you don't mind me asking?
'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostAh OK. Just be careful with your terminology.
And you think that is a guarantee?
How long have you been contracting if you don't mind me asking?
In total contracting six and a half years...Comment
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