IR35 SPECIAL: 'Outrageous' agencies shifting liability onto contractors & candidates

IR35 SPECIAL: 'Outrageous' agencies shifting liability onto contractors & candidates

Reports that recruiters are shifting IR35 liability onto their contractor candidates has been described as “outrageous”, after one contractor alerted ContractorUK to hidden tweaks to his contract.

According to the candidate affected, unbeknownst to him, a new clause was inserted into his contract that explained “your company [i.e. the contractor] shall indemnify…against any losses suffered or incurred by the IR35 legislation.”

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  • RobB
    Thu, 6 Jul 2017 2:50pm BST
    It all depends on who is paying the tax!!!

    If the contractor pays the tax then the agency has every right to ask the contractor to indemnify them against any claim.

    If however, the agency is deducting the relevant tax on behalf of the contractor, then that is completely wrong as the agency is responsible for making the correct deductions.

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