Another contractor working on an outside of IR35 PS contract has a reporting warranty clause in her contract whereby she needs to notify the agency if she comes under SDC. She’s a bit worried by this as this is the haziest part of IR35 with confusing case law and guidance. She’s not sure she’ll judge this right and meet the reporting requirements although she does think that, as of now, she is not under SDC.
Could she be liable for damages to the agency if it is pursued for taxes if the contract is later deemed inside IR35 and she didn’t report she was under SDC. Would PI insurance cover this sort of claim?
What’s the panel’s view? How common is this? I don’t have this clause (although I was concerned about an indemnity- see earlier post - which covered similar territory). Is it fair? I can understand the reasoning but it does seem to be another attempt to transfer liability.
Could she be liable for damages to the agency if it is pursued for taxes if the contract is later deemed inside IR35 and she didn’t report she was under SDC. Would PI insurance cover this sort of claim?
What’s the panel’s view? How common is this? I don’t have this clause (although I was concerned about an indemnity- see earlier post - which covered similar territory). Is it fair? I can understand the reasoning but it does seem to be another attempt to transfer liability.
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