Reply to: Client Security/Credit Check - IR35 Risk?

[Lance]

Really? And exactly how does the results of a credit check against your Ltd. affect your ability to be onsite?

It's not just finance houses and it's not about whether you might directly steal cash.
SC has a lot of the same checks.
It's more about do you owe money to anyone who may pressure you into doing things (like stealing information).
It's not foolproof but the thinking is that most people are genuinely honest and only do something dodgy when under extreme pressure. Financial pressure is a starting point and often an indicator of other pressures that may be of interest.
Similarly if your child is being held hostage by the Russian mafia you are unlikely to get SC clearance even if your credit is very good.

[billybiro]

Yes, but no one here is arguing they are not useless, just that you won't get on site without one, simples.

We're in agreement then.

Thread ends.

NLUK - You can stop stalking us now.

[MrMarkyMark]

No, the whole point is that if the role exposes you to the ability to potentially dump £10m+ into that offshore account, no amount of credit checking or any other "due diligence" (and the results thereof) is really going to make any kind of difference as to whether you'd actually do it, therefore, such checks are entirely useless. However, if the bank wants to convince itself that such nonsense actually means something, then more fool them.

Yes, but no one here is arguing they are not useless, just that you won't get on site without one, simples.

[northernladuk]

What are you two bleating on about?

[billybiro]

That's the whole point, it doesn't matter what you would worry about, or what you think.

No, the whole point is that if the role exposes you to the ability to potentially dump £10m+ into that offshore account, no amount of credit checking or any other "due diligence" (and the results thereof) is really going to make any kind of difference as to whether you'd actually do it, therefore, such checks are entirely useless. However, if the bank wants to convince itself that such nonsense actually means something, then more fool them.

[MrMarkyMark]

If I was of that persuasion and I had the means to "dump" £10m+ into an offshore account and thought I'd get away with it, I can assure you that the last thing I'd be worrying about is my credit rating.

That's the whole point, it doesn't matter what you would worry about, or what you think.

[billybiro]

Most people with a career won't risk getting sacked for petty crime but if they can dump £10m+ offshore and buy a new life elsewhere, then they might be tempted. It's standard operational risk mitigation.

If I was of that persuasion and I had the means to "dump" £10m+ into an offshore account and thought I'd get away with it, I can assure you that the last thing I'd be worrying about is my credit rating.

[LondonManc]

Ri-i-i-ght..... And, of course, a clean bill of health on a credit check absolutely proves beyond any shadow of a doubt, that you're trustworthy enough to access their financial systems, yes?

As much as a DBS check can prove that someone hasn't been a kiddy-fiddler - so far. It's as much due diligence as they can carry out. Most people with a career won't risk getting sacked for petty crime but if they can dump £10m+ offshore and buy a new life elsewhere, then they might be tempted. It's standard operational risk mitigation.

Anyway, all immaterial you you wont get on site without it, unless you are contracting via a consultancy, at least for IBs.

Which makes it anything but immaterial

[MrMarkyMark]

Anyway, all immaterial you you wont get on site without it, unless you are contracting via a consultancy, at least for IBs.

[quackhandle]

Ri-i-i-ght..... And, of course, a clean bill of health on a credit check absolutely proves beyond any shadow of a doubt, that you're trustworthy enough to access their financial systems, yes?

It doesn't but they have it in place to cover their backs. If someone failed a check on say large debts, still got accepted, stole xyz then they would be liable. All about covering the backside and alot more besides.

qh

[billybiro]

It's because you'll have access to their financial systems.

Or are you too young to remember Superman III?

Ri-i-i-ght..... And, of course, a clean bill of health on a credit check absolutely proves beyond any shadow of a doubt, that you're trustworthy enough to access their financial systems, yes?

[quackhandle]

It's because you'll have access to their financial systems.

Or are you too young to remember Superman III?

Both keys at the same time?

qh

[MrMarkyMark]

Um
I'd agree to the credit check against me, so long as I could run credit checks against each and every member of the board of directors of the client co. What's good for the goose etc. If they refuse, I'd tell them to jog on.

The only person that would be jogging on is you, potentially away from hundreds of thousands of revenue

[IPSE]

Hi, been lurking on the site for a while.

The client I'm currently working with are asking for everyone working on a specific project to undergo a security/credit check (not SC) and have sent the forms to both permies and contractors to complete. If I let the company run the check on me does this put me at risk of assessed as being within IR35? My contract has been reviewed and is outside of IR35. Should my Ltd. company be running the checks rather than the client?

I have tried the search but couldn't find an answer buried in with all the SC questions.

Any help is appreciated.
Cheers

It's standard/mandated practice in loads of clients - especially in Financial Services - and has no bearing on IR35.

[LondonManc]

Um.. Ok... My bad...

Still, even if the credit check is against the individual, I don't see how that makes a difference. Do you owe the client loads of money that you're likely to default on?

I'd agree to the credit check against me, so long as I could run credit checks against each and every member of the board of directors of the client co. What's good for the goose etc. If they refuse, I'd tell them to jog on.

It's because you'll have access to their financial systems.

Or are you too young to remember Superman III?