Originally posted by DrStrange
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Liability Transfer When SDS Is Outside
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Originally posted by jamesbrown View PostRight, you cannot transfer a statutory responsibility. In other words, the debt absolutely would be paid by the supply chain in the first instance. The question is whether it could then be recovered as a matter of contract law and I think this part is sketchy (depends on the nature of the clauses and how they were entered into). Even if they were successful, the liability is limited, by design.
Of course if your CO could buy an insurance product that would pay, and everyone in the chain is happy with this it could be moot.
Although how this would work if HMRC found a client has mis-determined hundreds or thousands of contractors in one go I have no idea.See You Next TuesdayComment
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Originally posted by Lance View Postin that case, and if the agency took your CO to court to recover the money. Would your defence that this is the shifting of a statutory obligation be sufficient?
Of course if your CO could buy an insurance product that would pay, and everyone in the chain is happy with this it could be moot.
Although how this would work if HMRC found a client has mis-determined hundreds or thousands of contractors in one go I have no idea.Comment
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Originally posted by jamesbrown View PostI don’t think so, because the statutory responsibility wouldn’t even be in question. I think the clauses would need to be examined and established as having the desired intent and having been entered into fairly, with eyes open, to put it colloquially. I think that last hurdle could be higher than anticipated. However, I’m obviously just a contractor, so YMMV, IANAL etc. Again, though, I think the big picture is that the risk to the contractor actually declines after April if you’re lucky enough to secure an outside contract.See You Next TuesdayComment
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I've now officially received an 'Outside SDS' and the Agency issued a new contract with the indemnity in it.
In layman's terms, the indemnity says that MyCo will indemnify the client, agency and Payroll Provider from all Tax / NIC claims by any third party, including the defence costs.
Naturally, I've declined to agree to that, however the Agency will not budge and have now provided their final position of "take it or leave it".
Now I know I'm lucky to have an outside contract, but this is just too wide to accept, right? Am I being over paranoid here or am I right to think about potentially giving up an outside contract?
On the one hand I can see the argument it's little different to the situation today, but on the other the actual laws have changed so why would I accept another business's potential liability when I no longer legally have to?Comment
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Originally posted by DrStrange View PostI've now officially received an 'Outside SDS' and the Agency issued a new contract with the indemnity in it.
In layman's terms, the indemnity says that MyCo will indemnify the client, agency and Payroll Provider from all Tax / NIC claims by any third party, including the defence costs.
Naturally, I've declined to agree to that, however the Agency will not budge and have now provided their final position of "take it or leave it".
Now I know I'm lucky to have an outside contract, but this is just too wide to accept, right? Am I being over paranoid here or am I right to think about potentially giving up an outside contract?
On the one hand I can see the argument it's little different to the situation today, but on the other the actual laws have changed so why would I accept another business's potential liability when I no longer legally have to?Comment
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