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FORM 42 DEADLINE EXTENDED AGAIN

The Inland Revenue has extended the deadline for submissions of the new form 42 from 7 September to 30 November 2004.

This relates to a new requirement to inform the Revenue of any shares issued or share options granted to directors or employees since 16 April 2003. There is also a reporting requirement where existing shares have been transferred to employees by third parties - it remains the company's obligation to report the transfer.

Companies must notify the Inland Revenue Share Schemes Unit if a "reportable event" occurs. The definition of this term is very wide-ranging and includes:

• grant, exercise or cancellation for cash of a share option;
• acquisition or disposal of shares or other securities (whether or not at market value);
• conversion of any shares or other securities;
• lifting or varying of any restrictions on shares or other securities;
• artificial enhancement of the market value of any such shares or other securities.

You must notify even if no tax is due in consequence of the reportable event.You must notify the Revenue for the tax year 2003/4 by 30 November 2004. The penalty for failing to do so is up to £300 per 'reportable event'.

If you need to report a reportable event you can either download a form 42 from the Revenue website http://www.inlandrevenue.gov.uk/shareschemes/42-2004-q8-31.pdf or provide the required information in the form of a letter.

GUIDANCE ON REPORTABLE TAX AVOIDANCE SCHEMES

The Inland Revenue has published guidance on schemes that should be reported to the Avoidance Intelligence Unit.

The rules require disclosure of transactions or arrangements which:

• are expected to obtain a tax advantage
• as a main benefit and
• involve certain employment or financial products.

The person responsible for making the disclosure is normally the person who designed or
marketed the scheme (the promoter) but in some circumstances can be the scheme user.

DISCUSSION ABOUT ANSELL IR35 WIN

Last week's newsletter included the news that 44-year-old Mike Ansell from St Albans had won his IR35 case, which had been heard by the Special Commissioners in April. Members may read more details about the judgment on the IR35 & 5.91 Issues forum.

INFORMATION FOR YOUR ACCOUNTANT

PCG's recent membership survey showed that over 85% of respondents sought business advice from their accountants. PCG already communicates with over 200 firms of accountants who look after freelance contractor clients, many of whom say that they value information from PCG about IR35, Section 660A and other taxation matters.

If your accountant is not a PCG member or Affiliate member, but you think they would like to receive information from PCG about the Arctic case and other tax and case law matters that are relevant to freelance contractors and small business owners, please ask them to register their details online, indicating which publications they would like to receive.

ANOTHER SUCCESSFUL EVENT IN STEVENAGE

Despite torrential rain and delays on trains, the evening seminar in Stevenage last week was well-attended by a mix of members and non-members. Co-hosted by Affiliate member Baker Watkin and Millfield Partnership in association with PCG, the seminar featured presentations on "Using the internet and networking to market your business", "Topical tax tips for freelance consultants" and "Investing for your future".

PCG chairman Simon Juden presided over the event, and after welcoming delegates, presented an overview of PCG and its achievements to date in terms of policy, lobbying, case law and the promotion of freelancing as a valid way of working.

CFI MEETING IN MANCHESTER

The next meeting of the Collaborative Freelancing Initiative (CFI) will take place in Manchester on Saturday 18 September 2004. Details are available online.

COMMERCIAL FORUM A WINNER FOR DP CONNECT AND MEMBERS

Established 14 years ago, DP Connect is a specialist ICT recruitment solutions firm and PCG Affiliate member. It places contract and permanent ICT professionals with blue-chip organisations in the UK, mainland Europe, US and Australia. These placements are both on a contingency basis and also as part of managed outsourcing agreements and fixed price projects. DP Connect's clients span all industry sectors with long-term PSL (Preferred Supplier List) relationships allowing them to gain an in-depth understanding of the financial services industry, IT and professional services sector and manufacturing arena.

Director Jan Stevens says, "We are extremely fortunate to have a portfolio of highly experienced limited company contractors who choose to work with DP Connect on a regular basis and with whom we enjoy a relationship of trust and good service. We are however always keen to welcome new talent on board. To this end, we have been posting bookings on the PCG's commercial forum and have been very pleased with the response received.

"We have sourced a variety of skills," she continues, "and found ourselves dealing with PCG members who not only possess specific, highly sought-after technical expertise but offer a wide knowledge of the technology arena, of UK legislation and furthermore, understand the business challenges of our clients. We recognise that PCG plays an important role in keeping its members informed in a fast-moving and increasingly complex and regulated environment."

DP Connect has also received invitations to tender for business as a result of its presence on the forum. "This was an unexpected outcome for us," says Jan, "but demonstrates the value of networking that is offered by professional bodies like your own."

In return, Jan and her colleagues are confident that they offer PCG members a highly professional service. Their recruiters are long-serving and experienced personnel who have the support of a dedicated Contractor Care and Compliance team and an in-house payroll department with a solid reputation for prompt, accurate payment.

COMMERCIAL FORUM PROJECT POSTINGS

For information about the latest job, project, contract and work opportunities, see PCG's Commercial forum , and Members' Commercial forum. The Commercial forum may be accessed by Affiliate members, and PCG welcomes postings by agencies.

This week's opportunities from the Commercial forums include:

Oracle 8i perf tuning - Central London

Business analysts - London or Rugby

Embedded software engineers - Brugge, Belgium

REAL LIFE MEETINGS

North Kent: - Monday 16 August 2004 19:30

Farnborough: - Tuesday 24 August 2004 19:00

West Midlands: - Wednesday 1 September 2004 19:30

Thames Valley: - Wednesday 8 September 2004 20:00

Various members have also posted in the RLM forum about potential meetings in Norwich, Edinburgh, Shropshire and South Wales. If you would like to attend RLMs in any of these areas, please register your interest by posting to the relevant thread.

Disclaimer - caveat emptor - PCG carries very limited advertising only from known and reputable Affiliates and complementary organisations. Even so, publication of any advertisement carries no implicit or explicit endorsement by PCG.

Professional Contractors Group Limited
Lakeside House, 1 Furzeground Way
Stockley Park East
Uxbridge
UB11 1BD

Telephone: +44 (0845) 125 9899
Fax: +44 (020) 8622 3200

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