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Update No.18 - High Court Ruling in PCG's Judicial Review

Background briefing

The High Court judgement in the judicial review which the Professional Contractors Group brought against the Government will be given at 10.30am on Monday, April 2, 2001. This note outlines the PCG's operational arrangements for the day.

PCG, which represents more than 12,500 small businesses, brought the legal action against the Government over the controversial 'stealth tax on small businesses', IR35, in the High Court from March 13-15 and 19-20, 2001.

The five-day case claimed that IR35 contravenes European legislation on three counts (state aid; freedom of movement and Human Rights) and therefore should be removed from the Statute Books. The PCG won the permission hearing on all counts last October after the Revenue was defeated in its attempt to prevent the case being heard.

Immediately after the decision on Monday April 2, representatives from the PCG will be available for brief comments outside the High Court, The Strand, London WC2. Thereafter, the PCG will also be operating a communications and press office in the upstairs floor of the Cheshire Cheese, 5 Little Essex Street, London WC2 - opposite the High Court from 11.30am to 7pm. (PLEASE NOTE: This is NOT Ye Olde Cheshire Cheese in Fleet Street). Journalists and photographers are invited to attend the Cheshire Cheese for one-to-one interviews, briefings or photographs throughout the day with the PCG chairman, directors and members.

There is a comprehensive briefing on the background to the case and the PCG on the PCG's web-site
https://www.pcgroup.org.uk.

Updates and comments on the Court's decision will be available on PCG's dedicated news-site
http://www.ir35update.co.uk throughout the day.

IR35 was announced in a press notice after the March 1999 Budget. It treats small businesses in the knowledge-based sector as 'disguised employees' for tax and NI purposes, thereby preventing them from operating on similar terms to their larger competitors.

Notes to editors.

  1. The Professional Contractors Group was formed in May 1999 to lobby against the Government's IR35 proposals. It is a non-party political group and its patrons are cross-bench peer, Lord Weatherill, former Speaker of the House of Commons; and industry guru Sir John Harvey-Jones. Since its formation it has evolved into the representative body for independent contractors from many disciplines including IT and engineering on many issues affecting the knowledge-based sector. It is the fastest growing trade association in the country and now has more than 12,500 members.
  2. The PCG's aim is to work for proper recognition of independent contractors as a genuine and valuable sector of the economy, generating wealth and employment, providing industry with a flexible workforce. The Internet has been the primary resource, providing fast, effective communication.

For further information or to arrange advance facilities or interviews, please contact PCG's press officer:
Susie Hughes: [email protected]