Changing Status Mid Way Through Contract (post April)

[DrStrange]

Hypothetical question.

Assume that a client provides an SDS as 'Outside' and new contract begin on 6th April. The PSC invoices agency on 4th May for services provided between 6/4 and 31/4.

Agency informs PSC that Client has assessed the actual working practices since the contract began and has now supplied an updated SDS on 1/5 which is now Inside.

Does the Agency settle the invoice Gross or Net?

[GhostofTarbera]

Inside I say


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[eek]

Inside I say


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Net - as the original determination was wrong...

We discussed the reverse earlier today and even then I said it was unpaid invoices that are impacted - although if you were paid outside and the client determined you later as inside the bunfight for the money would be fun to watch...

[northernladuk]

The chance of that happening are slim to nil. It would show the client has been negligent in the original determination, which they won't be. It may also expose the client to further risk if you them to task about it

Too hypothetical IMO

[DrStrange]

Agree it's unlikely - just trying to understand the risks in the agency contract.

They seem to have every angle covered so that it seems I'm carrying more risk than I was before!

Re the point about the "bunfight" , it seems to me that the agency could withhold an entire months invoices to offset a potential tax bill following an inside SDS.

And there was me hoping that the tax complications would be lessened for outside contracts going forward...


Thanks guys

[northernladuk]

The smart client would wait a month or two, state that they've decided that they have they won't allow any substitition (or whatever it was that put you outside) going forward, terminate the current contract and issue a new one inside.

No fear of you escalating the issue and trying to sue them for breach or anything.

I wouldn't be surprised if this will happen for genuine reasons from time to time but much later in the year.