Any point to IR35 Insurance if deemed Outside by end-client

[LondonManc]

My thought on that was to have a clause in the contract to terminate the contract immediately if the determination was to change to inside IR35. I only thought of it from this discussion but it is seeming increasingly like a good idea.

And in the case were determination by the PSB is changed to inside would evidence or an contract review trump the new determination? From reading the forum discussions on the April changes in recent week my best guess at present would be that it would not. It is just a guess mind.

End client determination looks likely to trump all.

Asking them what's changed would be my first action.

[NomDePlum]

End client determination looks likely to trump all.

Asking them what's changed would be my first action.

Yes that is the conclusion I am coming to as well.

My working practices should never put me inside so there shouldn't be a change to determination but you can never tell I guess

[LondonManc]

Yes that is the conclusion I am coming to as well.

My working practices should never put me inside so there shouldn't be a change to determination but you can never tell I guess

I can imagine working practices changing for blaggers who need a greater degree of SDC than they claimed they would; they deserve the extra pain and tax though.

[Andy Hallett]

Unless the agency sneak extra terms into the contract, eh?

They can put terms in to indemnify against claims from the workers etc, as the fee payer they cannot pass down any mis-classification liability.

In that respect an agency can put in any terms they want, it will have the value of a chocolate teapot.

[NomDePlum]

They can put terms in to indemnify against claims from the workers etc, as the fee payer they cannot pass down any mis-classification liability.

In that respect an agency can put in any terms they want, it will have the value of a chocolate teapot.

So Andy what do you think about about whether having IR35 insurance and/or contract review has any value for Public Sector work which is deemed outside IR35 by the client? Do these still make sense if an supporting ESS determination is present?

[northernladuk]

Didn't he answer that in post 15?

[NomDePlum]

Didn't he answer that in post 15?

You are right he did. Thanks

[WordIsBond]

There's other value in a contract review by a legal expert. But if you are just doing it for IR35, that review had no legal force other than to prove you'd taken precautions (which would limit or exclude penalties). An outside determination by an end user in this Brave New World actually has legal force in exempting you from future liability.

So there would be no reason to get the review for IR35 purposes.

And the same applies to tax liability cover -- for that contract. Obviously, you may well need such cover for other contracts, but that's been discussed at length above.

[malvolio]

There's other value in a contract review by a legal expert. But if you are just doing it for IR35, that review had no legal force other than to prove you'd taken precautions (which would limit or exclude penalties). An outside determination by an end user in this Brave New World actually has legal force in exempting you from future liability.

So there would be no reason to get the review for IR35 purposes.

And the same applies to tax liability cover -- for that contract. Obviously, you may well need such cover for other contracts, but that's been discussed at length above.

... and always remembering there are a lot more threats to cover than IR35.

[WordIsBond]

... and always remembering there are a lot more threats to cover than IR35.

Yeah, but tax liability cover is for IR35. Tax investigation cover, which you can get from multiple sources, is a completely different thing.