PCG CONSIDERS APPEAL OF ARCTIC S660A CASE

Following news last Wednesday that Geoff and Diana Jones of Arctic Systems had lost their landmark Section 660A case, PCG, which funded the case, is seeking the advice of its expert tax advisers regarding the prospects for an appeal. The case had been heard by the Special Commissioners of Income Tax in June and the decision handed down in last week’s judgment was not unanimous.

Anne Redston, tax partner at Ernst & Young, and Dave Smith of Accountax Consulting, who was part of legal and advisory team representing the Joneses, have both given their initial reactions to the judgment.

PCG chairman Simon Juden said, “The outcome of this important case is clearly unsatisfactory, not only because of the implications for thousands of other family businesses who have innocently followed their accountants’ advice, but also because the two highly expert Special Commissioners involved could not agree on their assessment of the various tests. What hope does this give the average couple running a small family business in trying to assess and budget for their tax liabilities?”

The decision whether to appeal or not will be made in the next three weeks or so. In the meantime, PCG has revised its comprehensive Guide to S660A which is available to members via the home page of the website.

Members can assess their risk of challenge under S660A by using an online diagnostic tool called SARA - for Self Assessment Risk Analysis - which was developed by PCG in partnership with Accountax Consulting and can be purchased online for just £25 plus VAT.

FRESH APPEAL FOR LEGAL FUNDS

Following the decision in the Arctic case, PCG is launching a fresh appeal for funds to support legal cases on behalf of its members, including any appeal on Arctic.

Please send cheques payable to "Professional Contractors Group Ltd" (or just "PCG Ltd") to Legal Department, Professional Contractors Group Limited, Lakeside House, 1 Furzeground Way, Stockley Park East, Uxbridge, UB11 1BD.

If you would prefer to pay by BACS, the sort code is 207929 and account number 20675350. Please include your username or membership number as a reference.

All moneys raised will be used by PCG at its sole discretion to support legal cases on behalf of its members. Please note that donations are not refundable in any event.

For further information, please see the thread in the Legal and Accounting forum.

PRESS COVERAGE

As anticipated, there has been enormous media interest in the Arctic judgment, and within the past few days, PCG and Arctic have featured in several articles and broadcasts, including:

• Times Online - Couples to face new tax danger
• AccountancyAge - Family businesses suffer S660 blow
• AccountingWeb - Casting vote gives Revenue section 660A victory
• Daily Telegraph - Taxman in £1b swoop on family businesses
• BBC Online - Tax fear for UK small businesses
• Top-Consultant - Inland Revenue strikes blow to small consulting firms
• BBC2 - Working Lunch - interview with Simon Juden
• Radio 5 Live - interview with Simon Juden
• Daily Telegraph - Dividend ruling is a blow for couples in business
• Radio 4 Moneybox - interviews with Simon Juden and Geoff Jones
• Financial Times - Website funded by DTI 'falls foul of tax rules'
• Sunday Express - Verdict on tax 'cheats' is a farce (front page)
• Sunday Times - Revenue's tax grab stuns experts

EUROPEAN SMALL BUSINESS SURVEY

PCG's European lobbying partner, Small Business|Europe, has been asked to collate the results of a survey on a new European Statute for SMEs. The European Commission is conducting a study into the benefits and feasibility of creating a European statute for SMEs and their representatives, who are invited to respond to an online survey. Some observers support a new statute, whilst others feel it unnecessary and can see no obvious benefits. The Commission says that it remains totally open at this stage and whether or not it pursues the idea will depend on the outcome of the study.

Please visit the Lobbying and External Affairs forum for access to the survey. The deadline for responses is Friday 8 October 2004.

LAWSPEED CLOSES IR35 CASE FOR PCG MEMBER

Another case has been closed by Lawspeed in favour of a PCG member under Route35 cover. Commenting on the outcome, the member wrote, "I just wanted to say a big thank you to everyone who has advised us, helped us, comforted us, at Lawspeed throughout this investigation. Your backing has been just what we needed. Thank you."

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 postings include:

Oracle 9i DBA - London

RedHat Linux systems administrator - London

Embedded C++ specialist - East London

REAL LIFE MEETINGS

Local real life meetings - known on the forums as "RLMs" - encourage members to socialise, network and discuss PCG issues. These meetings are open to all members, and in many cases non-members are welcome to come along too.

Edinburgh: - Jolly Judge Pub, off Lawnmarket, Edinburgh - Tuesday 12 October 2004 18:30

Thames Valley: The Vine, Maidenhead - Wednesday 13 October 2004 20:00

Kent / Essex: Bluewater, near Greenhithe, Kent - Monday 18 October 2004 19:30

Sheffield: - Old Queen's Head opposite main railway station, Sheffield - Wednesday 1 December 2004 19:30

Various members have also posted in the RLM forum about potential meetings in Taunton, Basel, Norwich, 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.

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