Identified as outside but still not sure about something

[Sparky25]

Hi,

I've not been around the public sector very long. If I am offered a contract inside a public sector body and they assess that the role offered is outside IR35, and I have written confirmation including output from HMRC's tool that says the role is outside. Later on, if someone scrutinises this role, from HMRC, and decides they made a mistake are they liable for all the tax and NI that HMRC would then view as due or would I be embroiled in a legal battle.

I have not accepted yet but wondered what the situation here is.

[Andy Hallett]

Whoever pays your company is liable. This is either the agency or the Public Sector Body if direct.

[WordIsBond]

Whoever pays your company is liable. This is either the agency or the Public Sector Body if direct.

Andy's right, but if it were me I wouldn't be taking advice from someone on a forum. I'd be reading the legislation myself to be sure. If I weren't sure I understood it, I'd be talking to a lawyer, or else talking to QDOS and seeing if they'd give me a great deal on TLC35 given the circumstances. I bet they would.

But I wouldn't be trusting anyone on an Internet forum, even such an eminent person as Andy Hallett.

[jamesbrown]

The only scenario in which YourCo is potentially liable is when you've provided fraudulent information that wrongly leads the PSB to making an outside determination, but I think this is quite unlikely in practice, especially if the PSB came to their determination independently (without your input). Although not directly relevant to your question, the PSB can also become liable if they fail to notify the fee payer promptly (assuming they aren't the fee payer). Bottom line, you're in a very strong position once the PSB has confirmed in writing that the contract is outside.