HMRC contractors all Inside(Blanket Approach)

[Rao]

All of the HMRC contractors in Worthing and probably in Southendonsea and Telford have been declared in scope of IR35 and seems like they have gone for blanket approach with couple of answers in the tool not in synch with the contract terms agreed and even they got few job titles wrong. Can anything be done in this regard ??? Seems contractors are quiet helpless.

[northernladuk]

Correct. If anyone is going to give you an inside statement you'd expect it to be HMRC to be fair.

What's in your current contract is pretty irrelevant at this point. Exactly when did the make this declaration. 2 weeks away is cutting it very fine.

[Patrick@Intouch]

Hello,

If you have been judged, in your opinion unfairly to be inside the new public sector off payroll rules then you should:

a) complete the ESS tool yourself answering all question honestly and fully.
b) approach the PSB with the results and formally request that they take reasonable steps to evaluate your engagement in relation to section 10.

They will then have 31 days to respond and if they do not then they risk becoming the fee payer in the chain with all the responsibilities that go with it. They do have a responsibility to take reasonable steps to assess your status and not just use a risk-based blanket approach.

[TheFaQQer]

The consultations and communications from HMG have always emphasised that there will be a right of appeal. Anyone who receives an assessment that they disagree with should ask the client to provide evidence that they have not breached their duty of care (as defined in the legislation), whether they used ESS to determine the status, and if so what answers were provided to the questions. You should also ask the client what the avenue for appeal is.

See FAQ post 2.

[Andy Hallett]

Good to see HMRC demonstrating 'reasonable care'......

[TonyR]

"Reasonable Care" is a worthless ammendment, as they can still make a blanket decision of not allowing substitution and end up with the same result for the majority of their contractors.

[MeMeMe1966]

"Reasonable Care" is a worthless ammendment, as they can still make a blanket decision of not allowing substitution and end up with the same result for the majority of their contractors.

Right of substitution is only one of the factors that can put you outside IR35. I have a contractual right to substitution but both the client and I agreed that it would be highly unlikely to be enacted due to the specialist nature of my work. We completed the tool together and answered "No" to substitution but still arrived at an outside determination based on other factors.

I'm not sure a single policy could put all contractors at an organisation inside because it isn't looking at SDC, MoO, Financial risk, etc.?

[LondonManc]

Right of substitution is only one of the factors that can put you outside IR35. I have a contractual right to substitution but both the client and I agreed that it would be highly unlikely to be enacted due to the specialist nature of my work. We completed the tool together and answered "No" to substitution but still arrived at an outside determination based on other factors.

I'm not sure a single policy could put all contractors at an organisation inside because it isn't looking at SDC, MoO, Financial risk, etc.?

New to HMRC?

[Rao]

Correct. If anyone is going to give you an inside statement you'd expect it to be HMRC to be fair.

What's in your current contract is pretty irrelevant at this point. Exactly when did the make this declaration. 2 weeks away is cutting it very fine.

For example:
To a question in the tool who bares faulty work expenses, client completed the tool answering '" In scheduled hours at regular day rate" which is otherwise in contract. In contract it says consultant should correct the work in his time without any expenses to client or agency.

[Rao]

Hello,

If you have been judged, in your opinion unfairly to be inside the new public sector off payroll rules then you should:

a) complete the ESS tool yourself answering all question honestly and fully.
b) approach the PSB with the results and formally request that they take reasonable steps to evaluate your engagement in relation to section 10.

They will then have 31 days to respond and if they do not then they risk becoming the fee payer in the chain with all the responsibilities that go with it. They do have a responsibility to take reasonable steps to assess your status and not just use a risk-based blanket approach.

I have completed the tool and forwarded my responses to the agency. Looks like all this is going to be a formal thing and the decision seems to be unchallangable.