Those clauses are creeping in more often now. They used to be a little woolier and just say that you will be responsible for ensuring the correct taxes are paid (or words to that effect). They're now a lot scarier wrt IR35, probably because of recent developments in this area.
Get it reviewed just for (a) peace of mind, and (b) evidence of due diligence in case of an investigation. If you're still worried, then the review is often accepted for IR35 insurance as noted above - many places like Qdos do a bundle of review + insurance.
IPSE+ gives you cover in case of an investigation along with discounted contract reviews and tax and legal helplines if you have any general concerns. I don't know enough about the Qdos offering but know people who have been with them for years and are generally happy (however, they've never had cause to claim, so can't say what they're like in a crisis).
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Contract makes me 100% liable for IR35
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Contract makes me 100% liable for IR35"
Collapse
-
If you are worried, you can get insurance to protect you against any potential IR35 liabilities. e.g. the TLC35 policy from QDos.
The fee paid to you from the client includes all your tax liabilities. If you pay tax based on being outside IR35 and are later deemed to have been inside, that is your liability, not your client's liability.
Leave a comment:
-
Originally posted by nonamesupplied View PostThanks for your reply - I'd always expect to be liable for PAYE in the event I'm in breach of IR35, but wouldn't the client usually be liable for employers NI, pensions, etc?
If you take the money, and are subsequently found to be inside IR35 it's completely your liability.
If you're inside IR35 from the start there's a strong argument that the employer should be liable, but in the private sector they're almost always NOT, and in the public sector who knows (it's not entirely clear yet).
Leave a comment:
-
Originally posted by TheFaQQer View PostYour company is always liable for IR35, unless you are working in the public sector - in which case the fee payer is liable for ensuring that the correct taxes are deducted.
Leave a comment:
-
Get it checked out by the likes of QDOS or Bauer and Cottrel and take out either TLC35 with QDOS or IPSE+ membership (or both).
Quite often contracts are either 3 or 6 months long and aren't related to the length of the project. It's just their policy on contract duration so wouldn't read too much in to that.
Leave a comment:
-
Your company is always liable for IR35, unless you are working in the public sector - in which case the fee payer is liable for ensuring that the correct taxes are deducted.
Leave a comment:
-
Contract makes me 100% liable for IR35
Hi all,
I've recently been offered a contract at a bank, and I've been going over the contract which is with a third-party agency. The contract is I think pretty good from an IR35 perspective (it states explicity that I can substitute, work without control, no mutuality of obligation), but it does also require me to indemnify the agency and the client from any and all costs relating to most things, including IR35. My interpretation is that if HMRC investigates and finds me to be in breach of IR35 (based on behaviour rather than contract), I would then be liable for my legal costs, my PAYE tax, the clients legal costs, and the clients employers NI / pension, etc.
Has anyone else come across this, and if I'm taking 100% of the risk around IR35, can anyone recommend anything I should insist upon in my relationship with the client to ensure I cannot be in breach. I think the likelihood of me actually being able to substitute myself out is low, particulary given the banks screening process. The contract role is 6 months but the hiring manager assured me it would run for at least a year (so already mutuality of obligation is in question in my mind).
Cheers all
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: