Client Co has shown their colours...

[ladymuck]

Not a blanket ban or blanket anything. No date for when SDS will be issued.

I have, however, been shown the clauses that they are planning to put into the supplier framework agreements which state that SDS will be issued if required within 7 days of the "effective date". The new framework contracts will be coming out in March so any SDS will be issued too late to properly react to.

Also in the new clauses is their intention to expect suppliers to fully indemnify ClientCo. This will be pushed down to me should they decide on an outside determination. Not sure how enforceable that is but I've not read it through fully in slow time yet.

PI is being set at £10m for each and every claim (not aggregate) which I will be expected to provide even though my work has absolutely no chance of that level of impact.

I had a two hour meeting with the director of the small consultancy I work via and he's ready to throw in the towel. He doesn't want the risk, cost and hassle of fighting ClientCo or HMRC. He would prefer me to go FTC or permie with him. I am a special case for his firm and he's spent a significant sum on legal advice figuring out how to make things work. I offered to contribute towards the cost if we did work out a mutually agreeable way forward.

Anyway, it's all pointing to "get the hell out", which is a shame. I like this client and like the work but this approach is basically killing off small companies.

I may post up some of the more interesting clauses later, once I've had chance to read them through properly.

The plus side, he's promised my March invoice will be settled by 5 April.

[vwdan]

Bugger Sorry to hear that LM

[cojak]

Bugger.

[DevUK]

Sorry to hear that! I'm sure you'll be fine. Although there are more and more posts like this on this forum and on LinkedIn, things really aren't in a great state.

[hairymouse]

Can you explain more about "fully indemnify ClientCo. This will be pushed down to me should they decide on an outside determination"?


Do you think it's actually a possibility that the client could expect you to pay the resulting tax if they mess up the determination? I was operating under the assumption that after April, it's all on the client.

[simes]

Also in the new clauses is their intention to expect suppliers to fully indemnify ClientCo. This will be pushed down to me should they decide on an outside determination. Not sure how enforceable that is but I've not read it through fully in slow time yet.

PI is being set at £10m for each and every claim (not aggregate) which I will be expected to provide even though my work has absolutely no chance of that level of impact.

https://www.contractoruk.com/forums/...ml#post2545141

Back in April 2018, I did wonder if this sort of option would ever surface. Indeed I even had the temerity to voice it.

Needless to say the Louder amongst us decried it as 'the funniest thing they'd ever heard.'

Needless to say, am very interested if this (if understood correctly) could ever see the light of day and be enforceable.

Best of luck.

[northernladuk]

Not sure what opt out has to do with it. Completely different beast isn't it?

[TwoWolves]

Is the real end client going to be determining the SDS or is it someone else in the supply chain?

[ComplianceLady]

It can be passed on contractually but not statutorily.

So an unqualified indemnity i.e. no stipulations over proof of loss, causation etc. The stuation would be:

HMRC investigate status -> HMRC declares status wrong -> Any dispute / tribunal if necessary -> liability is declared -> Fee Payer pays or passes liability to Client -> Client pays and/or Fee Payer invoices PSC for total amount ->Recovery of debt

If there are any qualifications in there i.e. in the event you misrepresent or fail to advise of a change in working practices and that results in liability you indemnify... then the client would have to demonstrate the event AND that that led to the liability (causation)

And of course that is assuming the PSC still exists, has assets etc.

[jamesbrown]

Frack.