• 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!

Recruitment Agencies and QDOS?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Recruitment Agencies and QDOS?

    Is it true, QDOS have agreements with some recruitment agencies to evaluate their contractors to whether they are inside or outside IR35 going forward post April 2020?

    A 41 question evaluation has been mentioned?

    #2
    No idea, although it would seem a liitle odd. Arse about face is perhaps a better phrase...

    OTOH there must be some agencies out there with enough intelligence to work out that they need help in evaluating the IR35 status of a given engagement. Using a bona fide expert would appear to make sense.
    Blog? What blog...?

    Comment


      #3
      I would have thought the engagement is a little different than that? Wouldn't the agent be supplying QDOS's service to the client to help the client with their determination rather than the agent?

      Doesn't seem unreasonable.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by northernladuk View Post
        I would have thought the engagement is a little different than that? Wouldn't the agent be supplying QDOS's service to the client to help the client with their determination rather than the agent?

        Doesn't seem unreasonable.
        Almost I think.

        The way I heard it was the contractor completes a QDOS questionnaire, the agency tells the client that a contractor is inside or outside.

        Needs clarification, hence why I asked, because I’m confused when this happens. How does the contractor know until they have been at a client for a while what the working practices are.

        This is happening though in some form.

        Comment


          #5
          I know someone who's been asked to complete an online QDOS IR35 assessment form by the consultancy they're engaged through. They've not yet completed it so I'm not party to the detail.

          Comment


            #6
            Yes - we are working with numerous recruitment agencies, consultancies and clients to assist them with the assessment process. We've been providing this service in the public sector since 2017.

            There are some more details here but feel free to ask me any questions.

            Seb
            Qdos Contractor - IR35 experts

            Comment


              #7
              I was reading something interesting about the effect of off-payroll on agencies and clients. Apparently if the client gets the determination wrong (e.g. should be inside IR35) the unpaid tax liability will initially sit with the agency as they are the 'fee payer'. The agency would then need to prove that the client didn't take reasonable care in the determination to be able to pass the liability over to the client.

              If that is still true, its no wonder the agents are having to taking a lead here.

              Comment


                #8
                Originally posted by CheeseSlice View Post
                I was reading something interesting about the effect of off-payroll on agencies and clients. Apparently if the client gets the determination wrong (e.g. should be inside IR35) the unpaid tax liability will initially sit with the agency as they are the 'fee payer'. The agency would then need to prove that the client didn't take reasonable care in the determination to be able to pass the liability over to the client.

                If that is still true, its no wonder the agents are having to taking a lead here.
                "Still true"? Was it ever true? Where did you read that?

                I think its the client that holds the liability. Read this:

                April 2020 changes to off-payroll working for clients - GOV.UK


                Taking reasonable care when making a determination

                You must take reasonable care when you make a determination about the employment status of a worker.

                Failure to do so will result in the worker’s tax and National Insurance contributions becoming your responsibility.
                I believe the fee payer (agency) will only hold the liability if the contract is determined inside by the client but the fee payer does not withhold the taxes.

                The unanswered question is what if the client has taken reasonable care, but HMRC disagree. Who owes the taxes? I suspect I know who HMRC will chase...
                Last edited by Paralytic; 29 October 2019, 10:00.

                Comment


                  #9
                  Originally posted by Paralytic View Post
                  "Still true"? Was it ever true? Where did you read that?
                  I think this article was the one, but I'm sure I've seen something similar elsewhere:

                  Fact or Myth?
                  Agencies can leave decisions on IR35 solely to their clients without risk.

                  Myth. It is true that the end client is responsible for making IR35 decisions under the off-payroll legislation coming into force in April. However agencies (as the payers of PSCs) are liable for deducting tax due to HMRC.

                  If HMRC believes there is any tax due it will look first to the agencies for the tax. This liability may pass to the end client in certain circumstances (see below) but agencies would have to point HMRC to their clients to avoid liability which commercially may be an issue.
                  What if the client gets the IR35 decision wrong?

                  As things stand the legislation doesn’t say that a client will be liable if it gets a decision wrong. It will however be liable if it hasn’t taken reasonable care.

                  There is no statutory definition of ‘reasonable care’, although HMRC has released guidance on this topic in the past. If the client has taken external advice or used HMRC’s tool then it will be very difficult for HMRC to prove lack of care.

                  This leaves the agency (as the fee payer) as the obvious target for HMRC.

                  Comment


                    #10
                    Originally posted by CheeseSlice View Post
                    I was reading something interesting about the effect of off-payroll on agencies and clients. Apparently if the client gets the determination wrong (e.g. should be inside IR35) the unpaid tax liability will initially sit with the agency as they are the 'fee payer'. The agency would then need to prove that the client didn't take reasonable care in the determination to be able to pass the liability over to the client.

                    If that is still true, its no wonder the agents are having to taking a lead here.
                    This is correct. As soon as the client passes the Status Determination Statement to the next party in the chain, the liability moves too.

                    Assuming the determination has been communicated correctly and the client has taken reasonable care in making the status decision, the default liability will rest with the fee payer.
                    Qdos Contractor - IR35 experts

                    Comment

                    Working...
                    X