The Status Determination Statement, decoded
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Under the client-led rules, a medium/large client must pass a reasonable determination to you and the fee-payer in writing, with reasons. No SDS = the status liability stays with the client/fee-payer, not your company.
What a compliant SDS includes
- The determination (inside or outside) and the reasons for it
- How the three tests were applied to your engagement
- A working date from which it applies
Your response options
- Accept — if the reasoning matches the actual engagement
- Challenge — you have the right to make representations; the client must respond within 45 days. Put facts, not feelings: cite the substitution example, the deliverable scope, the project end date.
- Walk — a client that can't produce an SDS at all is either non-compliant or genuinely exempt (small) — both are useful signals before you sign.
Not legal advice. The client-led rules are in ITEPA 2003 Chapter 10; see gov.uk for the client and worker summaries.
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