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IQ Consultants, Felicitas Solutions, ECS Trustees - loan repayment demands

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    Darwin Contract ~2011 - Continued

    6. Financial Risk:

    6.1 The Self-Employed Consultant can benefit from his own sound management of the execution of the Services by adopting efficient working methods, working longer hours, negotiating effectively and using substitutes or sub-contractors, but will nonetheless use his reasonable endeavours to complete the Services.

    6.2 If the Self-Employed Consultant or his substitute or sub-contractor performs the Services (or any part of the Services) negligently or in breach of this Contract then, if requested by the Company, the Self-Employed Consultant will re-perform the relevant part of the Services at the Self-Employed Consultant’s sole cost and in his own time and will repair or replace any property, equipment damaged in the provision of the Services. Any request made by the Company pursuant to this clause must be made within 6 months of the End Date or other the date of termination of this Contract as agreed between the parties.

    7. Other Activities:

    7.1 Nothing in this Contract shall prevent the Self-Employed Consultant from being engaged, concerned or having any financial interest in any capacity in any other business, trade, profession or occupation during this Contract provided that such activity does not cause a breach of any of the Self-Employed Consultant’s obligations under this Contract. For the avoidance of doubt, the Self-Employed Consultant is free to undertake other contracts for services for other third parties at any time either concurrently with or after this Contract.

    8. Confidentiality:

    8.1 Any party receiving confidential information in relation to the provision of the Services (‘Receiving Party’) shall keep the confidential information of the other party who supplies the information in relation to the provision of the Services (‘Supplying Party’) and the Third Party confidential and secret, whether disclosed to or received by the Receiving Party. The Receiving Party shall only use the confidential information of the Supplying Party and the Third Party for performing the Receiving Party’s obligations under the Agreement. The Receiving Party shall inform its officers, employees and agents substitutes and sub-contractors of the Receiving Party’s obligations under the provisions of this clause, and ensure that the Receiving Party’s officers, employees and agents substitutes and sub-contractors meet these obligations.

    8.2 The obligations of clause

    8.1 shall not apply to any information which:

    8.2.1 was known or in the possession of the Receiving Party before it was provided to the Receiving Party by the Supplying Party;

    8.2.2 is already in or comes into the public domain other than through the Receiving Party’s unauthorised disclosure;

    8.2.3 is provided to the Receiving Party without restriction or disclosure by a third party, who did not breach any confidentiality obligations by making such a disclosure;

    8.2.4 was developed by the Receiving Party (or on its behalf) who had no direct access to, or use or knowledge of the confidential information supplied by the Supplying Party; or;

    8.2.5 is required to be disclosed by order of a court of competent jurisdiction.

    8.3 This clause 8 shall survive termination of this Agreement

    9. Insurance and Liability

    9.1 The Self-Employed Consultant shall have personal liability for any loss, liability or cost (including reasonable legal costs) incurred by the Company in connection with the provision of the Services and shall accordingly maintain in force for the duration of this Contract full and comprehensive insurance policies as necessary in respect of the provision of the Services.

    9.2 The Self-Employed Consultant is invited to take advantage of the economies of scale offered by obtaining insurance cover for the provision of the Services through the Company’s insurance agent in accordance with the Schedule. The Self-Employed Consultant acknowledges that being named on the Company’s insurance policy would be a separate contractual and commercial arrangement between the Self-Employed Consultant and the Company and does not constitute a relationship of employee and employer between the parties.

    9.3 The Self-Employed Consultant shall comply with all terms and conditions of the insurance policies at all times. If cover under the insurance policies shall lapse or not be renewed or be changed in any material way or if the Self-Employed Consultant is aware of any reason why the cover under the insurance policies may lapse or not be renewed or be changed in any material way, the Self-Employed Consultant shall notify the Company without delay.

    9.4 In the event that the Self-Employed Consultant exercises the right to appoint a substitute or sub-contractor reserved in clause 3.3 herein, the Self-Employed Consultant will remain personally liable to the Company and the Third Party in respect of the Services and will indemnify the Company and the Third Party against all claims and losses arising from any loss, damage, liability or cost to the Company, its employees and third parties, infringement of third party intellectual property by reason or arising out of the provision of the Services.

    10. Status

    10.1 The relationship of the Self-Employed Consultant with the Company will be that of independent contractor and nothing in this Contract shall render him an employee, worker, agent or partner of the Company and the Self-Employed Consultant shall not hold himself out as such.

    10.2 This Contract constitutes a contract for the provision of services and not a contract of employment and accordingly the Self-Employed Consultant will be fully responsible for and shall indemnify the Company for and in respect of any income tax, National Insurance and social security contributions and any other liability, deduction, contribution, assessment or claim arising from or made in connection with the performance of the Services where such recovery is not prohibited by law. The Self-Employed Consultant shall further indemnify the Company against all reasonable costs, expenses and any penalty, fine or interest incurred or payable by the Company in connection with or in consequence of any such liability, deduction, contribution, assessment or claim (other than where the latter arises out of the Company’s negligence or wilful default).

    10.3 The Company may at its option satisfy such indemnity (in whole or in part) by way of deduction from any payments due to the Self-Employed Consultant.

    10.4 Further the Self-Employed Consultant undertakes that tax on or in respect of any fees paid or to be paid to the Self-Employed Consultant pursuant to clause 4 of this Contract:

    10.4.1 will be self-assessed; or

    10.4.2 will not be self-assessed but will be paid as a self-assessment payment on account under section 59A of the Taxes Management Act 1970. 10.5 There is a provision in the Conduct of Employment Agencies and Employment Businesses Regulations 2003( “the Regulations”) for companies and those workers whose services they supply, to opt out of the Conduct Regulations. By signing this Agreement you indicate that you wish to opt out of the Conduct Regulations. Please note you may NOT opt out if you are to be working or caring for persons under the age of 18 or who by reason of age, infirmity or other circumstances, are in need of care themselves.

    Comment


      Darwin Contract ~2011 - Continued

      11. Termination:

      11.1 Without prejudice to the other remedies or rights a Party may have termination provisions are as detailed in Schedule 1.

      11.2 Either party can terminate this Contract at any time with immediate effect or as specified in the notice

      11.2.1 if the other party is in breach of its obligations under this Contract and, where the breach is capable of remedy within 14 days, the other party has not remedied the breach within 14 days of receiving written notice which specifies the breach and requires the breach to be remedied; or

      11.2.2 if the other party becomes insolvent or if an order is made or a resolution is passed for the winding up of the other party (other than voluntarily for the purpose of solvent amalgamation or re-construction), or if an administrator, administrative receiver or receiver is appointed in respect of the whole or any part of the other party’s assets or business, or if the other party makes any composition with its creditors or takes or suffers any similar or analogous action in consequence of debt.

      11.3 On termination of the Contract the Self-Employed Consultant shall return to the Company and/or to the Third Party as appropriate any property of the other that he then has in his possession or control. For the avoidance of doubt, “property” includes but is not limited to all books, documents, papers, computer discs and other media (including copies), keys and security passes.

      12. Notices:

      12.1 Any notice to be given under this Contract shall be in writing and shall be sent by first class mail or air mail, or by facsimile or e-mail (confirmed by first class mail or air mail), to the address of the relevant party set out at the head of this Contract or such other address or facsimile number as that party may from time to time notify to the other party.

      12.2 Notices sent as above shall be deemed to have been received 3 working days after the day of posting (in the case of inland first class mail), or 7 working days after the date of posting (in the case of air mail), or on the next working day after transmission (in the case of facsimile messages, but only if a transmission report is generated by the sender’s facsimile machine recording a message from the recipient’s facsimile machine, confirming that the facsimile was sent to the number indicated above and confirming that all pages were successfully transmitted), or on the next working day after sending (in the case of e-mail).

      12.2 In proving the giving of a notice it shall be sufficient to prove that the notice was left, or that the envelope containing the notice was properly addressed and posted, or that the applicable means of telecommunication was addressed and despatched and despatch of the transmission was confirmed and/or acknowledged as the case may be.

      13. Variations:

      13.1 No variation of this Contract shall be valid unless it is in writing and duly signed by or on behalf of each of the parties.

      14. General:

      14.1 Neither party shall have any liability under or be deemed to be in breach of this Contract for any delays or failures in performance of this Contract which result from circumstances beyond the reasonable control of that party. The party affected by such circumstances shall promptly notify the other party in writing when such circumstances cause a delay or failure in performance and when they cease to do so. If such circumstances continue in a period of more than 6 months, either party may terminate this Contract by written notice to the other party served in accordance with clause 13 of this Contract.

      14.2 Save as provided for within this Contract, neither party may assign, delegate, sub-contract, mortgage or otherwise transfer any or all of its rights and obligations under this Contract without the prior written agreement of the other party. A party may, however, assign all its rights and obligations under this Contract to any person to which it transfers all of its business, provided that the assignee undertakes in writing to the other party to be bound by the obligations of the assignor under this Contract.

      14.3 This Contract contains the whole agreement between the parties and supersedes and replaces any prior written or oral agreements, representations or understandings between them. The parties confirm that they have not entered into this Contract on the basis of any representation that is not expressly incorporated into this Contract. Nothing in this Contract shall however operate to limit or exclude liability for fraud.

      14.4 No failure or delay by the Parties to exercise any right, power or privilege under this Contract shall impair the same operate as a waiver of the same nor shall any single or partial exercise of any right, power or privilege preclude any further exercise of the same or exercise of any other right, power or privilege. The rights and remedies provided in this Contract are cumulative and not exclusive of any rights and remedies provided by law.

      14.5 If any provision of this Contract is prohibited by law or judged by a court to be unlawful, void or unenforceable, the provision shall, to the extent required be severed from this Contract and rendered ineffective as far as possible without modifying the remaining provisions of this Contract, and shall not in any way affect any other circumstances of or the validity or enforcement of this Contract. 14.6 In the event of any conflict between this Contract and Schedule 1 annexed or any other document which forms part of this Contract, this Contract for Services shall prevail unless Schedule 1 states otherwise. In the event and only to the extent of any conflict between Schedule 1 and any referenced or attached document other than this Contract, Schedule 1 will take precedence.

      15. Governing Law and Jurisdictions:

      15.1 This Contract shall be governed by the Laws of England.

      16. Arbitration:

      16.1 In the event of any dispute arising from this Contract an independent arbitrator will be appointed to arbitrate in the first instance

      Schedule 1:

      COMPANY: Darwin Consulting Limited

      SUPPLIER:

      THIRD PARTY:

      THIRD PARTY PAYMENT TERMS: None

      SERVICES DESCRIPTION: IT

      LOCATION: UK

      START DATE: xx/xx/2011

      END DATE: xx/xx/2011

      SELF-EMPLOYED CONSULTANT’S FEES: £94.00 per day

      INVOICE FREQUENCY: Monthly

      PAYMENT TERMS: Within 5 Days

      TERMINATION NOTICE: As Per Agency Contract

      EXECUTED BY: Chris Connor, Chief Operating Officer on xx/xx/2011



      Schedule 2 - Self-Billing Agreement:

      This is an agreement to a self-billing procedure between Darwin Consulting Limited (VAT No: 003 2012 62) and (Vat No: NA)

      The self-biller (the customer) agrees:

      1 To issue self-billed invoices for all supplies made to them by the self-billee (the supplier).

      2 To complete the self-billed invoices showing the supplier’s name, address and VAT registration number (where applicable), together with all the other details which constitute a full VAT invoice.

      3 To make a new self-billing agreement in the event that their VAT registration number changes.

      4 To inform the supplier if the issue of self-billed invoices will be outsourced to a third party.

      The self-billee (“the supplier”) agrees :

      1 To accept invoices raised by the self-biller on their behalf.

      2 Not to raise sales invoices for the transactions covered by this agreement

      3 To notify the customer immediately if they

      (a) Change their VAT registration number
      (b) Cease to be VAT registered; or
      (c) Sell their business, or part of their business. Self-Billing Agreement Details: What is Self Billing? An arrangement between YOU (Supplier) and Darwin Consulting Limited (The Customer) whereby Darwin Consulting Limited prepares your (Supplier’s) remittance/invoice and sends it to you (Supplier) with payment.

      What’s the benefit to you?

      •You don’t have to produce an invoice

      •Invoices no longer have to be matched to payments

      • It reduces your administration

      • It’s a more efficient payment process

      What’s the benefit to Darwin Consulting Limited?

      •No need to check invoices to timesheets

      • It reduces queries

      • It’s a more efficient payment process

      Who makes the rules?

      HMRC – HM Revenue and Customs. More information can be found on their website: HM Revenue & Customs - GOV.UK and search on "self billing".

      Who designed the Self Billing Agreement (SBA)? I don’t like it / want to change it.

      The Agreement is designed to conform to HMRC rules. The format is standard and cannot be changed
      Last edited by shampoo; 13 August 2020, 14:21.

      Comment


        That says you earn £94 a day.

        How much did you receive into your bank account?

        What did you think that difference was?
        Best Forum Adviser & Forum Personality of the Year 2018.

        (No, me neither).

        Comment


          Here is something else I found in my emails (if your reading this you scumbags I have all correspondence). It was an email sent out in February 2011 before the new tax year for 2011/2012. There was a change or signing of docs which I never completed, since luckily, I smelt a rat and terminated all dealings with Darwin\Halo. I do remember a further email with docs attached but deleted it since it was irrelevant in my situation and that Darwin may have changed wording to incorporate and sign off for a 'loan' but this wasn't the case prior to April 2011? Perhaps that is why some of us have had these so called short term loans written off. Also not sure what happened 9th Dec 2010 with HMRC to get them to make changes?

          Here it is(in plain text)

          Important information in regards to your payments

          We are writing to update you on our progress in regards to the legislation which was announced by HM Treasury on December 9th 2010. Which brought in tax rules rendering your current tax arrangements with us ineffective as of April 6th 2011.

          Since then we have been working with our tax and legal advisors to identify a new tax efficiency arrangement to suit your circumstances.

          This work is progressing well ahead of schedule and will meet our commitment to identify a solution that:

          * Remains compliant with all applicable tax legislation
          * Pays funds quickly and efficiently into your account
          * Maximises tax efficiency allowing you to receive similar if not higher payments to your account that you currently get with us
          * Continues to provide a high level of customer service
          * No fees for set-up or exit
          * Causes you minimal disruption to move to before April

          Our service teams will be contacting you over the next month to make arrangements for migrating you to the new solution. These will include some changes to how you currently operate and we will have to present some paperwork for you to sign. It is important to understand that we will not be able to continue working with you unless we talk to you and gain agreement to the new arrangements.

          It is vital that we are able to contact you, therefore should we leave you a message or send you an email please can you respond back promptly so we can make this transition a smooth one and you can continue to enjoy the benefits of working with Darwin Pay into the new tax year.

          © DarwinPay Limited. All rights reserved. 32 Victoria Street, Douglas, Isle of Man, IM1 2LB


          Registered in the Isle of Man. Registration number: 003952V. VAT registration number: 003 2340 45.


          I dont know what changed but suspect thats where they started getting people to actually sign off loans (or not as the case maybe). Anyway, hopefully helpful. So, maybe that cut off of April 2011, change in T&Cs and HMRC change in Dec 2010 changed how these loans were handled\created\signed for etc
          Last edited by why; 13 August 2020, 15:12.

          Comment


            <Mod: Post modified to protect a poster>

            By all means use that quote if it helps, I'm sure it would have been sent out to all contractors using Darwin. I have the original, just wouldn't want my name being put up to HMRC in case they wanna try and find another way of charging me!

            Comment


              Originally posted by webberg View Post
              That says you earn £94 a day.

              How much did you receive into your bank account?

              What did you think that difference was?
              I'm not sure what your point is?

              Comment


                I've kept absolutely everything. Although my T&C's are slightly different to Shampoo's

                @Webberg - I know exactly what the 'other' amounts were - Payment for the work I did. The same answer everyone else would provide. Added truth: payment for services perfomed to avoid tax. HMRC have confirmed this as such, and therefore claimed the tax due on this difference. In the eyes of the crown, it was untaxed income. That's the situation.

                Asking 'What did you think that difference was'? - What answers would you expect otherwise? (Not attacking, just trying to understand rationale of the question please)
                Last edited by SouthKD; 13 August 2020, 15:59.

                Comment


                  Originally posted by shampoo View Post
                  I'm not sure what your point is?
                  You don't really need to answer that because it is the exact question HMRC will be asking.
                  "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


                    Originally posted by SouthKD View Post
                    I've kept absolutely everything. Although my T&C's are slightly different to Shampoo's

                    @Webberg - I know exactly what they 'other' amounts were - Payment for the work i did. the same answer everyone else would provide
                    Discretionary payment is the term used in all my correspondence ... The point is there is no reference to a loan in any way shape or form.

                    On top of that I have digital correspondence quoting

                    'Our trust fund is a company owned and managed trust, the contractors do not become Directors or Trustees on the trust so there is no on-going liability for them when the cease operating through Darwin. Our trust is managed by Baker Tilly and they are the Directors of the trust. Baker Tilly are one of the top 10 accounting practices in the country and they would not engage with a company that was non-compliant'

                    Comment


                      Originally posted by cojak View Post
                      You don't really need to answer that because it is the exact question HMRC will be asking.
                      HMRC fully paid up ... I took their very first offer a number of years ago.

                      Comment

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