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Five months into role and wrong contract was provided at outset - no one noticed.

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    Five months into role and wrong contract was provided at outset - no one noticed.

    After nearly 7 months out, I finally got a new gig with the NHS that was declared "inside" so I took it. I asked for the SDS on starting but it never arrived. Not wanting rock the boat as I was desperate for some income I just sucked it up, signed with the Umbrella Co and put the Ltd into dormancy.

    Five months in and I was looking through the documentation loaded in the Umbrella's portal, as the paperwork I had didn't have a schedule to say when the gig ended. That's when I realised that 1. I hadn't actually signed the contract (it was signed by what looks like NHS and Umbrella personnel) and 2. The contract is an "outside" contract, all about right to substitute, no mutuality, etc. Your bog standard "outside" contract.

    What can/would you do? Kick off and demand all the tax back I have paid? Wait till renewal at the end of this month and query it? Nothing - be grateful for an extension.
    Formerly Sausage Surprise but forgot password on account that had email address from old gig

    #2
    I had a similar situation with an NHS contract: I started out working through an umbrella, then got the "outside" SDS later. So, I switched over at that point, i.e. I contacted the agency and arranged for them to pay my limited company rather than the umbrella. That wasn't retrospective, i.e. it didn't affect the tax I'd already paid, but I got a P45 from the umbrella company for my SATR.

    You mentioned that your limited company is dormant. What exactly does that mean? (There's a specific definition, but people often say "dormant" when they mean "not trading".) Does the company have insurance etc? If you're confident about the extension then it makes sense to switch over, but if you're not sure then it might be better to stay with the umbrella for now.
    Last edited by hobnob; 2 May 2024, 20:07. Reason: Edit: changed "reactive" to "retrospective"

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      #3
      After nearly 7 months out, I finally got a new gig with the NHS that was declared "inside" so I took it. I asked for the SDS on starting but it never arrived. Not wanting rock the boat as I was desperate for some income I just sucked it up, signed with the Umbrella Co and put the Ltd into dormancy.
      Well look on the bright side. You'll not make that mistake again so you've learned something.

      Provision of the SDS is a legal responsibility so always get an SDS. We've said it endlessly.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #4
        You should've known that non-provision of the SDS before the first payment means that the decision... er... either defaults back to you or becomes outside anyway, I think?
        ⭐️ Gold Star Contractor

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          #5
          Originally posted by PerfectStorm View Post
          You should've known that non-provision of the SDS before the first payment means that the decision... er... either defaults back to you or becomes outside anyway, I think?
          You think lack of SDS means it's outside?
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #6
            Originally posted by PerfectStorm View Post
            You should've known that non-provision of the SDS before the first payment means that the decision... er... either defaults back to you or becomes outside anyway, I think?
            Oh dear.

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              #7
              Update: Had my contract extended for a few more months, so brought up the contract with the agent and the fact that it was an outside contract. Also that no SDS has been provided. They basically played dumb, saying the determination was made by the NHS for every contractor working on the project and that was how it worked. If I didn't want to accept that, then I could leave. Nice.
              Formerly Sausage Surprise but forgot password on account that had email address from old gig

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                #8
                Originally posted by Wobblyheed View Post
                1. I hadn't actually signed the contract (it was signed by what looks like NHS and Umbrella personnel) and 2. The contract is an "outside" contract, all about right to substitute, no mutuality, etc. Your bog standard "outside" contract.

                What can/would you do? Kick off and demand all the tax back I have paid? Wait till renewal at the end of this month and query it? Nothing - be grateful for an extension.
                1. That's the way it always works with an inside gig. The contract exists between the umbrella and the client. You're an employee of the umbrella.

                2. There's nothing you can do about tax you've already paid.

                3. Regardless of what the contract says, wrt substitute, MoO etc, the client can say that they won't engage with outside IR35 consultants. If that's the case you can either suck it up or walk away. They don't *have* to do a SDS.
                And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

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                  #9
                  a contract can be worded to sound like outside but still be inside. That's kind been HMRC's view for over 20 years.
                  So OP is inside and has accepted those terms.
                  See You Next Tuesday

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