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Who is responsible for SDS in this chain

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    Who is responsible for SDS in this chain

    Hi Contractor UK.

    Just a quick question on IR35 legislation to make sure I have my understanding correct on the chain between a Ltd Company and Customer. Who should be providing the SDS in such a chain as below:

    Scenario:
    Company A (Contractor LTD Company)
    Agency (Agency between Company A and Company B - invoicing/contracts)
    Company B (Customer of Company A providing skills for)
    Company C (Customer of Company B requiring skills from Company B)

    Company A has requested the SDS from Agency for months and not received a thing and is now looking to be out of a job from 6th April.

    Thanks,

    C.J.

    #2
    If your contract continues beyond 6th April you won't be out of a job.

    If your contract does end on the 6th April and you haven't received an extension that sets out your status one way or another, you will be out of a job.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      So company A is you.

      Agency is the fee payer

      Company B is the agency's client.

      Company C is the end customer

      So the agency is responsible for getting the decision from Company B. But Company C may have rules that determine what that decision will be (say a blanket ban on SDSs including third party suppliers).

      So all you can do is hassle the agency and say that you need the determination so that you can schedule future work.
      Last edited by eek; 26 February 2021, 08:00.
      merely at clientco for the entertainment

      Comment


        #4
        It’s quite difficult for us to answer this one definitively, but it will be either Company B or Company C. If the supply by B is a “fully contracted out” service, then B will be responsible, otherwise C. This assumes that B and C are not “small” companies. Clear as mud?

        Comment


          #5
          Will also add that you mention “skills”, so the supply by B is probably not fully contracted out and the responsibility for the SDS is probably with C.

          Comment


            #6
            Thanks for the responses after posting this I managed to get in contact with HMRC and they said it would be Company B in this chain. I should have said that all of them have over 50 employees and private sector. I have been asked by the HMRC to report Company B as they have not taken reasonable care to provide an SDS.

            Cojak,

            My current contract does straddle the 6th April and at that point would fall under the reform and Company B were informed when the contracts went out so they would become liable from 6th April hence why they are now terminating my contract - don't know why they didn't just renew to April and then sort out a new on but they didn't want to do the SDS and done a blanket inside which the legislation is supposed to stop happening.

            It was only when I saw my role advertised that I had any idea I was going to be terminated. I chased for the SDS and never got a response so will be reporting them.

            Thanks.

            C.J.

            Comment


              #7
              Originally posted by Cyberspacejunky View Post
              Thanks for the responses after posting this I managed to get in contact with HMRC and they said it would be Company B in this chain. I should have said that all of them have over 50 employees and private sector. I have been asked by the HMRC to report Company B as they have not taken reasonable care to provide an SDS.
              Just bear in mind that HMRC are clueless when it comes to IR35 and they are probably wrong that the responsibility lies with B (not that it particularly matters from your POV). It probably lies with C but, again, it does depend on whether the supply to B is fully outsourced. A supply of stuff is potentially outsourced, whereas a supply of people is not. We can be fairly certain that HMRC cannot provide good advice on what "fully outsourced" means. If Company C knows about you-person, then the SDS should probably come from C. Does Company C know about you as a person? Are you delivering to C?

              Comment


                #8
                Originally posted by Cyberspacejunky View Post
                I have been asked by the HMRC to report Company B as they have not taken reasonable care to provide an SDS..
                I don't think you need to worry about anything past April anymore.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by northernladuk View Post

                  I don't think you need to worry about anything past April anymore.
                  Yeah, but since they asked, I probably would. Better to cover your ****, even though it wouldn't constitute "fraud" to ignore their request. Overall, the best policy is probably not to ask questions at all and simply let the supply chain figure it out and carry the risk (post April, that is), but since the OP did ask questions and then contacted HMRC...

                  Comment


                    #10
                    Originally posted by jamesbrown View Post

                    Yeah, but since they asked, I probably would. Better to cover your ****, even though it wouldn't constitute "fraud" to ignore their request. Overall, the best policy is probably not to ask questions at all and simply let the supply chain figure it out and carry the risk (post April, that is), but since the OP did ask questions and then contacted HMRC...
                    Otherwise known as the shotgun to the foot process.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

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