Background
The Professional Contractors Group was formed
in March 1999 when Andy White, a Chartered Engineer and contractor,
first saw the IR35 proposals in the budget. He realised that
had these rules come into effect a few years ago then it would
have been very difficult for him to have developed his other
businesses. His concerns lead to him stepping onto the modern
equivalent of the soap box - the Internet - where he made his
concerns known on his web site (www.engineerjob.com) attracting
thousands of hits in the weeks following the budget. By the
end of April, over 2000 knowledge based contractors had pledged
over £100,000 to fund a campaign and PCG was formed as a company
limited by guarantee.
Membership has grown rapidly with over
14,000 members signed and 10,000 signing up in the first year.
PCG members include some of the country's most able engineering
and IT contractors. Through their web based discussion forums
these members have carried out one of the most far reaching
lobbying campaigns of modern times. They have conducted a carefully
co-ordinated campaign to brief MP's of all parties as to the
issues and their concerns. In November 1999, PCG members lobbied
their MP in one of the largest Parliament lobbies seen in recent
years with some 800 contractors green carding their MP's for
personal meetings.
When the proposals were first issued the Revenue,
with the arrogance borne of the Government's huge majority,
stated that there would be no consultation on the proposals,
only on the details of how the proposals would work. However,
PCG's actions have largely been responsible for IR35 becoming
a major issue for the Government and its political managers.
Although the size of the Government's majority has made it difficult
for anyone to shift their proposals they have already been forced
to make significant changes, for example, by recognising that
an investment in training is, for a knowledge based contractor,
just as valid an investment and as much of a financial risk,
as a major investment in plant is for a traditional self employed
worker.
PCG is now established as the only professional
body which represents the interests of contractors. As a group
it is independent of any ties to either agencies or any of the
specialist contracting accountants. While these other groups
have contributed to the debate their interests and loyalties
are inevitably divided as they seek solutions which protect
their commercial interests - interests which are not always
the same as those of contractors themselves.
PCG provides expert analysis of the issues
and problems contractors are facing whether it's through its
web site or newsletter. Much of the benefit comes from the expertise
of the members themselves who have a vast range of experiences
that they freely share with each other, covering not only issues
arising out of IR35 but the many practical daily problems that
all contractors face. Matters such as what agents and accountants
are advising, new contract terms, problems with the Revenue
on issues like travel expenses, the pros and cons of working
in various overseas locations etc.
Finally, PCG members have found that PCG has
given them their own voice and a focus which extends beyond
issues of IR35 to encompass all aspects of their life as contractors
and small businesses. PCG has arranged additional benefits for
members:
- Free tax investigation insurance
- Access to professional indemnity and employer's and public
liability insurance at discounted rates
- Free Legal and Tax helplines staffed by specialists who
understand the issues facing contractors
- Access to top level Legal and Accounting services at discounted
rates
- The PCG Portal - a central resource for finding work or
contractors to do the work.
In February 2000 the PCG members agreed to
turn PCG into a representative body, providing a full range
of services to knowledge based workers, in addition to representing
their interests on all relevant issues.
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