SDC

[Madocks2]

Company is forcing us to go PAYE on half the rate or Umbrella and keep the rate;

The agency are "recommending" a umbrella company to use, which i'm sure the agent will be getting a back hander from.

This umbrella is offering SDC to all subbies, however when your contract turns 2 years then SDC is cancelled and then full PAYE is applicable to all income, including employers NI.

I cant find any legislation which states there's a timescale for SDC to apply, even if it was 2 years then surely termination of contract and new appointment under umbrella resets the 2 years?

Ive phoned 2 umbrella companies for advice, however they wont speculate on their SDC policies until after I have signed up and filled in the SDC questionnaire.

Any advice welcome please

[cojak]

Sorry, what does SDC stand for in this context?

Actually, scratch that you are an employee of the umbrella. You are under the supervision, direction and control of the end client.

What you are describing doesn’t make sense - you have to pay Employer‘S NI now, not in 2 years time.

You can’t just cancel SDC, outside IR35 contracts do not have SDC by the end client, but inside or PAYE contract SDC is the reason why they are inside. Why are they linking SDC to payments??

This sounds well dodgy to me.

[ChimpMaster]

Congratulations, you still have a contract.

And I think you have the meaning of SDC (supervision, direction, or control) confused with Substitution.

Plenty for you to read already in this forum so I won't repeat. Other than to say, congrats that your contract is not being offshored like thousands of others.

[Patrick@Intouch]

I think what you are saying here is that the Umbrella are saying you're not subject to the Supervision, Direction or Control (SDC) of your client and that currently, you are able to claim the cost of travelling to your client's premises and sustaining yourself whilst there.

IF applicable and they can't know that without you having provided them with information regarding your engagement then the ability to claim travel and subsistence expenses will only last a maximum of two years as you have to stop claiming once you know that you will be travelling to that location for more than 2 years. This is based on the location you travel to and not the length of your contract.

[Madocks2]

Sorry, what does SDC stand for in this context?

Actually, scratch that you are an employee of the umbrella. You are under the supervision, direction and control of the end client.

What you are describing doesn’t make sense - you have to pay Employer‘S NI now, not in 2 years time.

You can’t just cancel SDC, outside IR35 contracts do not have SDC by the end client, but inside or PAYE contract SDC is the reason why they are inside. Why are they linking SDC to payments??

This sounds well dodgy to me.

Im not getting confused with right to substitute. We have been told we are inside of IR35 yet we can still claim certain expenses through the umbrella companies by not having SDC.

We fall outside of IR35 using CEST as we cannot substitute.

As an employee of giant you are able to claim various types of business expenses. These range from “site-to-site” travel & subsistence to capital equipment. The “SDC status is irrelevant” list below shows the full list of expense types you can claim.

Where giant (together with the rest of the supply chain, when possible) can obtain evidence that SDC (Supervision, Direction and Control) does not apply to you, 'home to work' travel and subsistence expenses can also be claimed.

Your business expenses will be processed in payroll with you being able to claim back the tax relief at the end of the tax year. We will provide you with a completed P87 for to do this for claims up to a total value of £2,500. Anything above this amount can be claimed back via a self-assessment. Business mileage & Capital Equipment claims are reimbursed tax free via your payslip.

In order for us to be able to assess if you are under SDC, we have introduced a few simple steps for you to complete on an assignment by assignment basis which include answering questions on your assignment.

[dsc]

Were you meaning to use the term "SDS" as in Status Determination Statement and not "SDC"?

[Madocks2]

Were you meaning to use the term "SDS" as in Status Determination Statement and not "SDC"?

Nope, Supervision......

Patrick@Intouch has answered the question So it seems that in august when my contract hits 2 years I wont be able to claim expenses for travel

[Lance]

Nope, Supervision......

Patrick@Intouch has answered the question So it seems that in august when my contract hits 2 years I wont be able to claim expenses for travel

if you've already been there for 1 year then you don't get another 2 years of travel expenses. Read the 24-month rule. Changing the engagement method does not reset that clock. Sounds like the umbrella don't fully understand it either.

[LondonManc]

Company is forcing us to go PAYE on half the rate or Umbrella and keep the rate;

The agency are "recommending" a umbrella company to use, which i'm sure the agent will be getting a back hander from.

This umbrella is offering SDC to all subbies, however when your contract turns 2 years then SDC is cancelled and then full PAYE is applicable to all income, including employers NI.

I cant find any legislation which states there's a timescale for SDC to apply, even if it was 2 years then surely termination of contract and new appointment under umbrella resets the 2 years?

Ive phoned 2 umbrella companies for advice, however they wont speculate on their SDC policies until after I have signed up and filled in the SDC questionnaire.

Any advice welcome please

If you can prove you're not under SDC then you can be deemed as outside IR35. Sounds like a proper abdication of responsibility by the client.

[cojak]

Yes, that’s why it doesn’t make sense.

OP, I’m not saying that you don’t make sense, just the situation that’s been presented to you.