Clarification re IR35 Status. It's not good

[Martin Bank Holiday]

Well, I'm more confused than I was when I first posted this. Cheers lads

[JohntheBike]

QDOS are doing an excellent job of talking to clients who actually engage them. I met with a friend today who's client are working with QDOS to assess each role and where found inside IR35, to see how they can engage with contractors to ensure the role is outside IR35.

My client is also engaging with them, so hopefully correct assessments will be made.

[Martin Bank Holiday]

Ok - another interesting development.

Still no clearer on IR35 status & contract has been extended until Feb but it seems that the client will be making the determinations & if you're inside IR35 it's FTC but if you're outside the risk is pushed onto a preferred agency. That agency is not the agency through which I am currently contracted & guess what? In my Ts and Cs it clearly states that I can't work for the same client through a different agency within 6 months of my contract ending.

This whole thing is a complete shambles.

[northernladuk]

Ok - another interesting development.

Still no clearer on IR35 status & contract has been extended until Feb but it seems that the client will be making the determinations & if you're inside IR35 it's FTC but if you're outside the risk is pushed onto a preferred agency. That agency is not the agency through which I am currently contracted & guess what? In my Ts and Cs it clearly states that I can't work for the same client through a different agency within 6 months of my contract ending.

This whole thing is a complete shambles.

The handcuff only works if the agency can demonstrate a loss by you moving. If the client is terminating the engagement with the agency they can't make any more money so the handcuff won't stand. It's not a shambles if you understand what is happening.

[Paralytic]

Ok - another interesting development.

Still no clearer on IR35 status & contract has been extended until Feb but it seems that the client will be making the determinations & if you're inside IR35 it's FTC but if you're outside the risk is pushed onto a preferred agency. That agency is not the agency through which I am currently contracted & guess what? In my Ts and Cs it clearly states that I can't work for the same client through a different agency within 6 months of my contract ending.

(my bolding)

Did they provide details on how that would work? The end client is the one making the determination and the one at risk if they haven't taken "reasonable care" in doing so. They can't just push that responsibility to a third party - they also own the risk.

[eek]

(my bolding)

Did they provide details on how that would work? The end client is the one making the determination and the one at risk if they haven't taken "reasonable care" in doing so. They can't just push that responsibility to a third party - they also own the risk.

Don't let facts get in the way of the agency's successful sales pitch.

[ComplianceLady]

The risk STAYS WITH THE END CLIENT....

The financial risk moves to the agency if the client discharges their responsibilities i.e. makes & communicates a determination with reasonable care.

[krytonsheep]

The financial risk moves to the agency if the client discharges their responsibilities i.e. makes & communicates a determination with reasonable care.

That would be a non-compliant agency ( if they decide to go against the determination).

I believe the rules being brought in on April 2020 address non-compliance of an agency in the supply chain by having a transfer of liability. Basically means if you're an end client you've got to do due diligence to ensure everyone in the supply chain is following the determination, otherwise the end client can end up being liable ( if HMRC fail to collect what's owed to them from the agency).