The Status Determination Statement (SDS) – do you have yours?

As a Limited Company contractor the IR35 reform has probably played a big part in your year so far, including ensuring you were ready for whatever it had up its sleeve for you. But has your end hirer / client done everything that’s expected of them to ensure you’re looked after from their side?

In this blog we explore the importance of the Status Determination Statement, and why you should be provided one by your client.

What is a Status Determination Statement (SDS)?

An SDS is a statement provided by your end-hirer / client that shows you which IR35 status determination they’ve given you, based on your contract and working practices. The statement will display your status, and reasoning behind determining that status. They must provide you with the SDS before you commence work.

What should you do if you haven’t received one yet?

Be sure to ask your end-hirer / client as soon as possible. Whether you’ve already started your contract or you’re about to, it’s now 100% the end-hirer / client’s responsibility to determine your status, and to inform you of that decision.

If they’re taking their time, be sure to ask them when you can expect it, and if they need assistance in providing you with one. Alternatively you can share with them our free guide: IR35 FAQs for Agencies and End Hirers which highlights what the SDS is, and what they need to provide you with.

Why it’s important for you to have your SDS

Without your SDS you won’t know your status, and therefore how to decide whether you’ll continue to contract through your Limited Company, or under an Umbrella Company. You’ll also need to have your SDS if you feel like you’ve been given a wrongful status determination, and wish to challenge it. If you find yourself in this position, our blog covers all the steps you’ll need to challenge your end-hirer / client.

How your accountant can support you

If you decide to challenge your status determination, your SG accountant will be able to help. They’ll provide you with a full IR35 working practice and contract review, and advise on any areas they feel may help to change your status’ determination. They’ll also be able to liaise with your end-hirer / client on your behalf to help demonstrate why they believe your status should be ‘outside’.

How SG Accounting can help

Our team of director-level accountants here at SG are experts in IR35, and provide our clients with unlimited IR35 advice and use of our Umbrella company services at half price from our sister company should you ever need them. Find out more about our IR35 services here, or get in touch to find out more.