Is it ok that agency require directors personal liability in the contract Is it ok that agency require directors personal liability in the contract
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  1. #1

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    Default Is it ok that agency require directors personal liability in the contract

    Hi All,
    I have been offered a contract for 6 months from now with the new Client.
    The contract is through the agency and I asked the agent to check it's IR35 status with Client.
    The agent said that the Client haven't decide the contractor status after March 2020.

    What do you think about signing the contract for 6 months and ask talk to the Client about IR35 status when I will be working for them.
    In the case they would like to put me inside IR35, I could terminate the contract before April (one week notice).

    Alternatively, I could negotiate and propose to sign current contract until end of March and talk about the extension when they will be ready for IR35 reform and will be able to determine the status.

    What do you think about advantages and disadvantages of such solutions?

  2. #2

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    Quote Originally Posted by mem80 View Post
    Hi All,
    I have been offered a contract for 6 months from now with the new Client.
    The contract is through the agency and I asked the agent to check it's IR35 status with Client.
    The agent said that the Client haven't decide the contractor status after March 2020.

    What do you think about signing the contract for 6 months and ask talk to the Client about IR35 status when I will be working for them.
    In the case they would like to put me inside IR35, I could terminate the contract before April (one week notice).

    Alternatively, I could negotiate and propose to sign current contract until end of March and talk about the extension when they will be ready for IR35 reform and will be able to determine the status.

    What do you think about advantages and disadvantages of such solutions?
    With regards to April the issue is not working it's the date of the last payment - if they decide you are inside and pay you after April 6th you have a problem.

    As for the rest of your post:-

    1) If they can't determine status it's because they know the answer and you won't like it or they don't deem it important. Either way avoid it.
    2) What have your other questions got to do with the thread title - where the answer is No - your company is responsible for the work and has professional liability insurance in case of problems.
    merely at clientco for the entertainment

  3. #3

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    Quote Originally Posted by eek View Post
    With regards to April the issue is not working it's the date of the last payment - if they decide you are inside and pay you after April 6th you have a problem.

    As for the rest of your post:-

    1) If they can't determine status it's because they know the answer and you won't like it or they don't deem it important. Either way avoid it.
    2) What have your other questions got to do with the thread title - where the answer is No - your company is responsible for the work and has professional liability insurance in case of problems.
    Thanks for your 1) advice.

    In terms of 2)
    The title has been changed by a moderator.
    You mention that my company is responsible for the work. However, if I will negotiate ex. 1 week notice, I could terminate the contract ex. 20th of March. Does it sound like the workaround/solution?

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    Quote Originally Posted by mem80 View Post
    Thanks for your 1) advice.

    In terms of 2)
    The title has been changed by a moderator.
    You mention that my company is responsible for the work. However, if I will negotiate ex. 1 week notice, I could terminate the contract ex. 20th of March. Does it sound like the workaround/solution?
    The date you leave isn't relevant - the important date is the day the customer pays the invoice. If they determine you are inside and pay the invoice after April 5th they will have to treat it as inside IR35 and withhold the appropriate taxes.

    If they determine you are inside you really need to leave by February 28th to ensure the final payment is before April 6th and considering you haven't started yet I wouldn't be bothering.

    Ask them for a determination now and if it's inside walk away.
    merely at clientco for the entertainment

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