Originally posted by RonBW
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Agent - "It's that simple"
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The greatest trick the devil ever pulled was convincing the world that he didn't exist -
Originally posted by LondonManc View PostFollowing on from that, would it have to be in an agency to limited company contract to allow the agency to recover the costs from the contractor's ltd co if HMRC found an incorrect determination?
IANAL, but I think it would need to be very carefully worded so that it's not just a case of the agency being able to bypass their statutory responsibilities. I know that some contracts already include clauses like "we have the right to deduct taxes due" in them (bad idea to accept the contract in that case!), so I would be looking carefully to make sure that there isn't anything additionally included in the small print.
Of course, the actual legislation is out on Monday and so the liability may change - what kind of business is there that makes one company liable for the decision made by someone else where they have no input into the decision at all? On the assumption that the legislation doesn't change the liability when it comes out, I would guess that it is more likely for the agency to push the liability for an incorrect determination up the chain to the client (who made the determination and who has lots of money) rather than down the chain to the contractor (who had no input to the determination, doesn't have as much money, and can phoenix relatively easily) - that's the move I would make if I was an agent.First they ignore you, then they laugh at you, then they fight you, then you win. But Gandhi never had to deal with HMRCComment
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Originally posted by RonBW View PostThat would be my understanding, yes.
IANAL, but I think it would need to be very carefully worded so that it's not just a case of the agency being able to bypass their statutory responsibilities. I know that some contracts already include clauses like "we have the right to deduct taxes due" in them (bad idea to accept the contract in that case!), so I would be looking carefully to make sure that there isn't anything additionally included in the small print.
Of course, the actual legislation is out on Monday and so the liability may change - what kind of business is there that makes one company liable for the decision made by someone else where they have no input into the decision at all? On the assumption that the legislation doesn't change the liability when it comes out, I would guess that it is more likely for the agency to push the liability for an incorrect determination up the chain to the client (who made the determination and who has lots of money) rather than down the chain to the contractor (who had no input to the determination, doesn't have as much money, and can phoenix relatively easily) - that's the move I would make if I was an agent.
It's an absolute minefield out there, good luck everybody.The greatest trick the devil ever pulled was convincing the world that he didn't existComment
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