Outside role

[Cookielove]

Applied for a job it is advertised as outside IR35 by agency. Spoke to agency to confirm and they are saying they are still waiting on confirmation form the client and a determination. Cautious that agency are misleading people. Am I right in thinking if the client determines the role outside then there would be no come back on me at a later stage as they make the determination...thanks

[northernladuk]

Read the thread right below yours right now.

https://forums.contractoruk.com/busi...-deducted.html

That will tell you exactly what should happen and what happens when you don't do it properly.

[Cookielove]

Thanks, if it’s not decided upfront I won’t be starting as I don’t want a muddle. My question was if the client gives an SDS as outside then there can be no claim back on me for taxes etc that would be on the client? Is that correct as I is now on client to decide the status ...so any error lies with them? Thank you ?

[ladymuck]

In theory the error lies with them. However do be wary of contract clauses that look like they push any liability down to you, or clauses that state the determination may change in the future.

For the latter, I would expect the contract to be terminated and and a new one drawn up, not a sudden change in earnings because the client has changed their mind.

[eek]

In theory the error lies with them. However do be wary of contract clauses that look like they push any liability down to you, or clauses that state the determination may change in the future.

For the latter, I would expect the contract to be terminated and and a new one drawn up, not a sudden change in earnings because the client has changed their mind.

I’m no, I would suspect the agency will just switch to deemed payments and pretend it’s not their issue.

that is to say, I would not recommend signing any outside IR35 contract that did not allow you to leave a little notice.

Barclays’ old game of 6 months with no notice period for the contractor would be a complete no no

[ladymuck]

I’m no, I would suspect the agency will just switch to deemed payments and pretend it’s not their issue.

that is to say, I would not recommend signing any outside IR35 contract that did not allow you to leave a little notice.

Barclays’ old game of 6 months with no notice period for the contractor would be a complete no no

That's what I'd be worried about. Those are fundamental changes to contractual terms. A proper way to manage it is to terminate the outside contract and offer an inside one (not that anyone in their right mind would accept the switch).

I think it's prudent to be wary of such clauses as that indicates the agency will do exactly what you describe.

[cojak]

Thanks, if it’s not decided upfront I won’t be starting as I don’t want a muddle. My question was if the client gives an SDS as outside then there can be no claim back on me for taxes etc that would be on the client? Is that correct as I is now on client to decide the status ...so any error lies with them? Thank you ?

It’s looking increasingly likely that you could be liable for repaying the tax.

See this thread for more information https://forums.contractoruk.com/acco...liability.html

[eek]

It’s looking increasingly likely that you could be liable for repaying the tax.

See this thread for more information https://forums.contractoruk.com/acco...liability.html

In some ways that case is unique (because of the timing. liability doesn’t pass up the chain as it does now).

however, HMRC are clear in their “suggestion’ that the fee payer should try to recover the money from the contractor.

on other points - I suspect the only way to solve this problem is for the contract / schedule of work to explicitly state its outside of IR35 (as otherwise the IR35 is a not a contractual consideration because it’s a tax rather than business issue).

finally someone is currently (think it’s a Parliamentary committee) running a 6 month review on the IR35 implementation. It may be worth contractors finding it and keeping things simple state that the change to allow determinations to made after work has begun is too much of a risk for contractors, is already being abused and isn’t working.

[Cookielove]

I don’t see how I could be liable for repaying any taxes as I’ve had nothing to do with the determination. That is solely the client deciding. Agency touting the role as outside. If client gives an outside SDS then surely that’s it the onus is on them...how can I be liable as I’ve had zip all to do with it ....surely if clients get to wrong contactless can’t in the frame that makes no sense to me...

[Cookielove]

Contractors not contactless ! Predictive text ?