Disagreeing with client IR35 determination

[northernladuk]

Thinking this through - I wonder if what clients might do is set up some sort of liability with contractors, so that if you get marked out of IR35 and later found to be in, client will collect the funds (insured) from you? Could be the answer to this whole thing...

No. Why would clients bother doing that? They generally use agents because they want nothing to do with onboarding contractors so no way will they set up a whole new process and people just to suit us.

There is also a lot of risk around this they won't want to touch with a barge pole.

[northernladuk]

oak trees grow from acorns and I guess the Tolpuddle Martyrs would now be amazed at what their protest has ultimately achieved.

Useful.. thanks...

[Lance]

Bottom line, without a budget and a FB progressing to an FA.... absolute chaos.

and no Queen's speech either.
This is why the FTPA is such a problem as it allows a dysfunctional government to carry on at the whim of parliament.

[jamesbrown]

Thinking this through - I wonder if what clients might do is set up some sort of liability with contractors, so that if you get marked out of IR35 and later found to be in, client will collect the funds (insured) from you? Could be the answer to this whole thing...

Transfer of liability is completely independent of the client's own liability. Take two scenarios, both quite likely, by way of example. One, the PSC is liquidated (OK, the contract could attempt to introduce a personal liability, but I think enforcement would then become very difficult - it will be hard enough otherwise). Two, the liability to HMRC must be settled first.

What's more likely is that clients insure themselves directly. A liability on the PSC effectively means a liability on them insofar as it falls on them first.

[jamesbrown]

and no Queen's speech either.
This is why the FTPA is such a problem as it allows a dysfunctional government to carry on at the whim of parliament.

Yup, agree with that. Very damaging legislation, brought about in the worst possible circumstances to legislate (a weak coalition, virtue signalling).