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5th July, 2000 - Final appeal to MPs
PCG responds to OFT report
The Office of Fair Trading recently asked for contributions
from individual professionals and their representative bodies
for a review it is doing into on competition restrictions in
the professions. The PCG has responded to this request focusing
on the damage IR35 will do to open and fair competition in the
market place.
Here
Kevin Miller drafted the paper, which clearly shows how IR35
is anti-competitive and will prevent the growth of new consultancy
companies to compete with the established firms. In conclusion,
the PCG paper pointed out that IR35:
- presents a barrier to entry into the knowledge-based consultancy
market,
- restricts the provision of consultancy services through
small independent companies
- reduces competition and limits the choice of the clients
using such services.
- represents an unnecessary, unwarranted and unfair restriction
on the ability of knowledge-based workers to adopt the business
structure best suited to meeting their needs and those of
their clients.
We would urge members to send copies of this document to your
MP, with a letter explaining in your own words how IR35 will
affect your own company.
If you have written before, it is still important to keep up
the pressure. if you have not, now is the time to start.
Write to:
(MPs Name) MP
House of Commons
London
SW1A 0AA
You can find out who your MP is :
Here
The OFT consultation document is at:
Here
The competition element of the unfairness of IR35 was further
illustrated in a number of PCG-inspired media articles which
demonstrated how a large company can pay their employees a low
wage; 'rent' him or her out to a client at an inflated fee and
have the difference as profit, for reinvestment, training, expenses
or dividend - whereas a smaller consultancy must treat the entire
fee as salary.
The PCG press notice; Here
followed a Shout99 news story; Here
Judicial Review
The PCG has now lodged the papers relating to the judicial review
with the High Court in London. The papers outline the PCG's
case and include the affidavit from PCG's chairman, Gareth Williams
plus the statements from our various witnesses. The first stage
is the High Court to grant us permission to bring in this judicial
review, the date for that permission is not yet fixed and will
depend on whether the Government seeks to at permission stage.
Private Medical Insurance Survey
PCG has appointed virtual medical insurance broker Medibroker
Online as an independent advisor to assess the medical insurance
needs of our members.
In order to fully access the interest (and therefore negotiating
power) of PCG members, we are conducting a brief survey on the
site. When the results have been analysed, we'll be in a position
to negotiate with several UK medical insurers to develop a discounted
Private Medical Insurance (PMI) Affinity Scheme for all PCG
Members. To assist in these negotiations, Medibroker need information
about PCG Members and the likely demands on the scheme.
Please take the time to answer the questions which will be
summarised and forwarded to Medibroker. The greater the number
of PCG Members who answer this questionnaire and who express
an interest in the PMI the better will be the discounted premiums
and/or improved benefits which can be negotiated by Medibroker
Online on our behalf with the major insurance companies.
Here
Joint letter
Following recent condemnation from a number of organisations
about IR35, the PCG, the CBI and the Federation of Small Businesses
have jointly signed a letter calling on the Government to abandon
the measure.
Susie Hughes
Press Officer to the PCG
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