Does an IR35 SDS take into account if the contract was cover for an ex-employee?

[eek]

It doesn't really matter what you think the status is - what matters is what the agency / end client decide.

As for the agency passing their costs on to you:-

1) agencies (most companies being honest) will always try to pass costs on to someone else - either by hidden or obvious means
2) any cost that doesn't directly tie into the payment method (annual insurance policy v daily rate) is definitely going to be passed on.
3) Most importantly given that it's a business expense, passing it down to a company that is only involved in the contract if the contract is outside IR35 makes perfect sense.

[spideybob]

I am in an assignment to effectively replace an employee who wasn't performing and take the analysis and output to a much higher level (so there are some specific initiatives that i will work on using my own skills).
having answered the questions in the CEST tool and Kingsbridge tool, both say the role is outside IR35. However I wonder if any other factors like replacing a permanent employee need to be considered.

Secondly, my agency are forcing me to buy IR35 insurance (via their preferred partner -Kingsbridge) so that it protects the supply chain despite the liability not falling upon me. Has anyone questioned this? seems the agency is just passing the cost to me whereas they should get their own insurance.

thanks