A simple statement declaring "No SDC" will NOT suffice as evidence

[jamesbrown]

Reminiscent of the original Dim Prawn saying 16 years ago that there is no uncertainty concerning IR35 - you're either in it, or you're not.

Yes, exactly.

[NotAllThere]

In other words, it is for case law to determine the question of sufficiency and whether "the SDC test is either met or isn't". I love the spin they put on everything

Reminiscent of the original Dim Prawn saying 16 years ago that there is no uncertainty concerning IR35 - you're either in it, or you're not.

[jamesbrown]

https://www.gov.uk/government/public...ion-or-control

Thanks. I particularly liked this part:

There’s no definition of the meaning of the SDC test in law. For the purposes of the agency and travel and subsistence legislation, the SDC test is:

• a test in isolation – there might be many indicators that suggest the SDC test is met, none of the other employment status indicators, for example, financial risk, the right to personal service etc, are considered when applying the SDC test, and
• not a question of extent; the SDC test is either met or it isn’t

Good luck with the last bullet. I think they're getting confused between an outcome and an evidentiary process that leads to an outcome. There are no strict deeming criteria, so there is no obvious route between the evidence and outcome. In other words, it is for case law to determine the question of sufficiency and whether "the SDC test is either met or isn't". I love the spin they put on everything

[Qdos Contractor]

https://www.gov.uk/government/public...ion-or-control

[jamesbrown]

That links to a "From 6 April 2014" statement. Am I missing something?

Yep, it's potentially confusing if you don't know the context. This is a reference to SDC in the context of the Agency Legislation (as applicable from April 2014), which is in a different part of the ITEPA 2003 to regulations w/r to T&S (as applicable from April 2016).

[jamesbrown]

Yeah, they mentioned that in the notes that accompanied the budget documents (or the draft Finance Bill, I don't recall). This is the specific ESM you're referring to:

https://www.gov.uk/hmrc-internal-man...manual/esm2042

HMRC do not consider a signed declaration from the worker that simply states they are not subject to (or to a right of) supervision, direction, or control by anyone constitutes sufficient evidence for the purposes of the Agency Legislation.

Was that paragraph actually inserted on the last edit (9 March) though? I don't recall if this is new guidance about SDC...

BTW, for anyone that may be confused when reading through this, note that the requirements of the Agency Legislation don't apply to PAYE salary received from a PSC or to non-employment income (dividends).

[LondonManc]

At last we have the SDC guidance released by HMRC on the day the legislation comes into force...

It appears as if the elusive EDM model will be short lived and Umbrella's looking to simply gain a declaration of no SDC may have to rethink!

"HMRC does not consider signed waivers and generic statements that the manner in which the worker personally provides the services is not subject to (or to a right of) SDC as satisfactory evidence."

That links to a "From 6 April 2014" statement. Am I missing something?

[NotAllThere]

Sorry for the typo in the title - its been a long day

What typo would that be?

[lucyclarityumbrella]

At last we have the SDC guidance released by HMRC on the day the legislation comes into force...

It appears as if the elusive EDM model will be short lived and Umbrella's looking to simply gain a declaration of no SDC may have to rethink!

"HMRC does not consider signed waivers and generic statements that the manner in which the worker personally provides the services is not subject to (or to a right of) SDC as satisfactory evidence."

Sorry for the typo in the title - its been a long day

[lucyclarityumbrella]

At last we have the SDC guidance released by HMRC on the day the legislation comes into force...

It appears as if the elusive EDM model will be short lived and Umbrella's looking to simply gain a declaration of no SDC may have to rethink!

"HMRC does not consider signed waivers and generic statements that the manner in which the worker personally provides the services is not subject to (or to a right of) SDC as satisfactory evidence."