Outside ir35 but HMRC tax liability clause added to contract Outside ir35 but HMRC tax liability clause added to contract - Page 2
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  1. #11

    Contractor Among Contractors


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    Quote Originally Posted by CompoundOverload View Post
    Pre April 2020 - your house and any possessions you have (as it will extend to you the Director?) - if found inside when self declared outside.
    You seem to be stating this as fact but also questioning yourself? What are you trying to say?

    Generally accepted view (though not necessarily tested in court) is that if the PSC has closed down, then HMRC could only come after the director if they could prove fraud/gross negligence etc.

  2. #12

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    Quote Originally Posted by jayn200 View Post
    See if you can get it taken out. If not then contact a professional if you need advice.

    I would guess that it wouldn't be enforceable. They are incurring damages by their own cause through absolutely no fault of yours, how can they legally pass those damages onto you? They drafted the contract not you. They are creating the working conditions not you. The only way I could see this happening is if you were deemed to be at fault because you didn't operate to the terms of the contract essentially meaning they are operating in good faith producing working conditions and a contract sufficient to keep you outside. Then you do something to mimic an employer/employee relationship which results in the working conditions being deemed inside ir35 and you being at fault.

    But that's just a total guess, who the heck knows.

    Awesome thanks.. that is quite a thoughtful argument.

  3. #13

    Should post faster


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    Quote Originally Posted by Paralytic View Post
    You seem to be stating this as fact but also questioning yourself? What are you trying to say?

    Generally accepted view (though not necessarily tested in court) is that if the PSC has closed down, then HMRC could only come after the director if they could prove fraud/gross negligence etc.
    Yes, it does extend to the Director. If you have liquidated all of the funds from the LTD then how else do you pay?.... sell your assets.

  4. #14

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    Quote Originally Posted by CompoundOverload View Post
    Post April 2020 (assuming you have a client SDS of being outside) - the end client / agency.
    This is precisely the point of discussion.
    Can the endclient/agency get away by adding a clause in the contract that makes the PSC liable for their legal liability? If it was that easy, wouldn't everyone have done the same thing ?

  5. #15

    bored now

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    Quote Originally Posted by michellebloomberg View Post
    This is precisely the point of discussion.
    Can the endclient/agency get away by adding a clause in the contract that makes the PSC liable for their legal liability? If it was that easy, wouldn't everyone have done the same thing ?
    See my original post -

    1) they can add it,
    2) whether it's legal would have to be determined as they sued you (it probably isn't) - this happens all the time with agency contracts, just get an overall contract review if you are really worried and ignore the stupid bits when they refuse to remove them.

    3) it's there because if you knowingly lied to create an outside statement the issue would be yours but if once you can show things were not your fault it's back to the agents issue.

    I really wouldn't have spent 2 days worrying about this I would have just celebrated getting an outside contract and signed it.
    Last edited by eek; 21st February 2020 at 10:20.
    merely at clientco for the entertainment

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