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IR35 Assessment & Determination

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    IR35 Assessment & Determination

    Hi All,

    An agency client of mine has asked my company to go through an IR35 determination from a well known contractor insurance provider.

    They have also requested that my company pay for this - "£110 and this includes £100k of insurance cover should the contractor be found outside IR35" and we may "undertake these assessment on a more regular basis than annually".

    Although the sum is not wholly significant the principle of this is given they have a hefty margin with the end client of some 15%.

    Feels like my conmpany pockets are being fingered and contractually I see no clause that gives them this right.

    I guess it has to be done since it will benefit both parties but it's typical underhand agency tactics and aren't the client responsible for providing the status determiation and hence the process and execution of it as well?

    Welcome any comments & suggestions..

    Thanks

    #2
    At present it is up to yourCo to make that determination* and should not be a contractual demand from the client.

    Such an assessment should be part and parcel of your operating costs but to be told who should do that assessment is out of order.

    It's unclear from your post - is it the the client or the agency who is making this demand?


    Edit
    *Assuming it's a private sector gig

    Comment


      #3
      Discussed last month at https://www.contractoruk.com/forums/...t=#post2839659

      I note that Qdos haven't answered the points I made then
      merely at clientco for the entertainment

      Comment


        #4
        Although the sum is not wholly significant
        I'd say its completely insignificant to be checked and insured even if they do it more than anually. It costs £90 for a review from QDOS as it is and that's without any insurance. That's gonna be another 250 off.

        I'd snap their bloody hand off to be in an outside gig with April coming up.

        15% isn't enormous for an agency with a limited number of contractors on site. It also means you've got some wiggle room come renewal time.

        Assuming this a private sector client then no the client isnt responsible. This alone tells me you need this level assurance. If you don't know this now then pay the money and get all the help you can.

        I think you are making an issue where there isn't one.

        Should the agency/client be imposing this now? If the gig is gonna span April then they are ahead of the curve. It needs doing now or later. I'd rather know the score from the off.
        Last edited by northernladuk; 20 January 2021, 22:56.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          While the sum is insignificant - I do question who will be paying it if the answer that came back was that the person is inside.

          As in that case it needs to be the agency as otherwise it would be an illegal deduction.
          merely at clientco for the entertainment

          Comment


            #6
            Originally posted by eek View Post
            While the sum is insignificant - I do question who will be paying it if the answer that came back was that the person is inside.

            As in that case it needs to be the agency as otherwise it would be an illegal deduction.
            It would? . It's a payment made before the determination. One you are found to be inside anything onwards would be surely, not before.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by northernladuk View Post
              It would? . It's a payment made before the determination. One you are found to be inside anything onwards would be surely, not before.
              So let's go forward a few weeks - it's now May and this is a brand new contract.

              Agency asks for you to pay for the determination and it's inside...

              Can the agency deduct the fee from the first pay packet?
              merely at clientco for the entertainment

              Comment

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