LEGAL FUND APPEAL

PCG is appealing for funds to take Geoff Jones' landmark Section 660A case to the High Court. He lost the initial case, which was heard by the Special Commissioners of Income Tax in June. The decision of the two Special Commissioners was not, however, unanimous; the view of the senior Commissioner prevailed by way of a casting vote.

PCG believes the current application of Section 660A to be incompatible with the concept of self-assessment and with the principle of independent taxation of spouses. It remains committed to supporting family businesses and is passionate about the right to transparent and easy taxation at a fair rate for people who choose to work for themselves. It believes that where families share risk they should also be able to share reward.

The case could have enormous implications for the 200,000 or so family businesses in the UK.

Donations to the legal fund will be used for this and other cases supported by PCG and should be made payable to "Professional Contractors Group Ltd" and sent to Legal Department, Professional Contractors Group Ltd, Sovereign Court, 635 Sipson Road, West Drayton UB7 0JE. Please email [email protected] or telephone 0845 125 9899 if you wish to send your donation via BACS.

About the legal fund

Almost from the outset, PCG has maintained a separate fighting fund to finance legal campaigns. Following the Judicial Review losses, PCG adopted an opportunistic case law strategy, looking for existing cases that were deadlocked, seeking expert advice about the merits of backing them, and taking them on if appropriate.

Most of these were cases where the Inland Revenue was at its most intransigent, and most were won by PCG either at the Special Commissioners or just before. Notable wins included Lime-IT, Sheerin Consulting, Tilbury Consulting, ACS, First DBS, Surton, Fortissimo and Hulleon.

There have unfortunately been losses too - Synaptek and Usetech. There is one universal factor in all these cases though - the intense levels of stress suffered by the freelancers and their families. A long investigation certainly takes its toll - on health, on marriages, on family life, and on one's efforts to run a business. Whilst it cannot take the stress away, having support from PCG and peers is frequently cited as a major comfort by those undergoing a tax investigation.

Support for recent cases has left the legal fund at a low point, and more money is needed to allow PCG to continue supporting cases, fighting unfairness and providing much-needed clarity in the area of employment status and taxation.

PCG MEMBERSHIP HITS A HIGH

New recruitment of PCG members showed another sharp increase in October, and renewal rates remain higher than they have been historically, hitting 83% in recent months. Commenting on the trend, PCG chairman Simon Juden said, "This clearly shows that we are doing well at demonstrating the value of PCG to new and existing members. It is worth noting also that the vast majority of new members are referred by existing members, indicating a very high level of satisfaction with PCG.

"We welcome this steady growth," he continued, "and encourage potential new members to take a look at what we offer and join our ranks. Increased membership will help support our efforts to lobby government and industry, ensure a fair deal for freelancers and continue to offer a range of valuable benefits to members."

THREE WINS IN A WEEK

PCG Affiliate member Bauer & Cottrell, expert tax consultants, report having had three cases closed in their favour this week. One of them had been in progress for nearly three years before being taken over by Bauer & Cottrell in September 2004.

Director Sally Howitt, who is an IT consultant and director of AbFab Consultancy Ltd said, "My message to anyone finding themselves in this situation is not to give in. I have always run a professional business and believed that I was outside IR35. It has been a very long, stressful hard slog but with the right advice my case has now been won and I can put this behind me."

IT INSURANCE FRAUDSTER CONVICTED

A former insurance consultant who defrauded thousands of IT businesses into buying forged policy documents and insurance premiums has been jailed for two and a half years. Robert Damon-Aspen pleaded guilty to 81 offences of deception and admitted defrauding 41 clients of £113,000 through his insurance intermediary, CFT Group Insurance Services.

According to the Serious Fraud Office, around 5,000 clients placed insurance contracts through CFT during its operation, accounting for approximately £1.3 million in premiums.

Alarm bells were first raised about CFT on PCG's forums as early as April 2000, and according to countless posts from members, many were spared from incurring losses. On hearing news of Mr Damon-Aspen's conviction, one member noted, "I got my money back off CFT, thanks to the PCG early warning system. When I heard, I phoned and asked for my EL certificate. I claimed that my employee was demanding to see it, and got a cheque two days later."

ACCOUNTANCY AGE AWARDS

PCG chairman Simon Juden has been nominated for the Accountancy Age Personality of the Year award. One of just six on the 2004 shortlist, Simon is the only finalist representing the freelance community. Visitors are invited to register their votes via the website, and one lucky voter will win a magnum of champagne.

PCG Affiliate members SJD Accountancy and Berg Kaprow Lewis have also been nominated for Practice Awards, in the small firm and medium firm categories respectively.

This year marks the tenth anniversary of the Accountancy Age Awards, which will be presented at a ceremony in London on Wednesday 10 November 2004.

PCG's marketing and administration team moved offices over the last weekend in October and the new address and contact details are:

Professional Contractors Group Ltd
Sovereign Court
635 Sipson Road
West Drayton
UB7 0JE

Tel: 0845 125 9899
Fax: 0845 644 4105

REBRANDING OF TRINATOURS

Following the acquisition of PCG Affiliate member Trinatours by the Online Accommodation Services Sector of First Choice Plc, it will in future be known as Hotelbeds Accommodation & Destination Services. After 30 years of operating under the Trinatours name, the company's new identity will reflect its status as a multi-destination operator with a presence in 14 countries and considerable growth in its UK Operations.

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:

EMC Engineer - Hampshire

RF Contractors - Hampshire

Conversion of spreadsheet into program

MIS Analyst/Developer - central 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, just off the Royal Mile, James Court, Edinburgh - Tuesday 9 November 2004

venue to be agreed, Bristol - Thursday 11 November 2004

Farnborough: - Prince of Wales, Farnborough - Tuesday 23 November 2004 19:00

Thames Valley/Maidenhead: - venue to be agreed - Wednesday 1 December 2004

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:
Basel, Bristol, Norwich, Shropshire, Swindon and Winchester or Southampton. If you would like to attend RLMs in any of these areas, please register your interest by posting to the relevant thread.

OTHER EVENTS

BEX - Business Enterprise Xchange - Manchester 17 and 18 November 2004
The BEX Exhibition and Conference is the ideal chance to network with owners, managers, and directors of North West businesses. BEX is a free two-day exhibition and conference, showcasing the best ideas and practices for SMEs and growing businesses. There are over 80 exhibitors and 35 speakers at BEX 2004, and places are going fast. To be assured of a place, please register on the website

AICS AGM and Conference - London, Saturday 27 November 2004
The Association of Independent Computer Specialists (AICS) will be holding its AGM and Conference at The East India Club, St. James', London on Saturday 27 November. The conference should be of particular interest to both ICT and non-ICT people.

If you have any queries, please contact Out There Events on 0161 244 5825 or email [email protected]

Accountax Construction Industry Seminars - November 2004
PCG Affiliate member Accountax Consulting is running a series of practical two-and-a-half-hour seminars for construction industry contractors. They will cover the latest Revenue attack on tax status, how to defend self-employed status, your rights and obligations when challenged, how to guarantee that your subcontractors are self-employed, holiday pay issues and problems with CIS certificates and how to appeal refusals. For full details of dates, venues and fees, and to book your place, visit the Accountax website.

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.

Telephone: 0845 125 9899
Fax: 0845 644 4105

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