Originally posted by simes
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Read that scenario back: fee payer has a statutory responsibility to make the correct deduction, fee payer fails to make the correct deduction, fee payer tries to pass on the liability for their mistake to the contractor's company (assuming it still exists) or, more likely, to the contractor.
Such clauses have a very low probability of success IMHO and, whatever that low probability of success, the fee payer will be correcting their mistake (read: paying all tax due, plus interest and penalties) before any liability can be recouped from the contractor. All of that to say: no fee payer with half a brain will rely on it.
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