6th October, 2000 - Judicial Review

Judicial Review
On Monday (October 9 2000) the PCG begins the first stage legal process to overturn IR35 by seeking the permission of the High Court in London to proceed with a judicial review.

PCG's case is that IR35 is contrary to EU law - and should therefore be struck down - on several counts. First, it is 'illegal state aid' as the Government is taxing small contractors more harshly than their larger competitors; secondly, it is a breach of the right of establishment as it discourages contractors from trading in the UK; and thirdly, under the Human Rights Act it is de facto confiscation of property contrary to the European Convention on Human Rights.

This stage on Monday will not be concerned with the 'good' or 'bad' of the measure. It is a technical hearing which will decide if permission for a judicial review should be granted. If the court decides there is an arguable case, a date - possibly towards the end of the year or the beginning of 2001 - will be set for a full hearing.

PCG's background briefing document on the judicial review is available;

Here

Also, Chairman Gareth Williams' summary is under discussion on the forum;

Here

PCG has hired top QC Gerald Barling, a specialist in EU law with a track record of defeating the Government on tax issues.

PCG Chairman Gareth Williams said: "We are confident we have a strong case against a measure that has been widely recognised as unfair and unreasonable. The case does however depend on some highly technical aspects of EU law, and we look to the court to allow this to go forward to a full hearing."

PCG AGM & Conference
Details of the PCG's annual general meeting and conference have been distributed to members. It will be held in Birmingham on Saturday October 28. Anyone wishing to attend should complete the booking form as soon as possible;

PCG at British Business 2000, Olympia, 19-21 October
If you wish to volunteer to man the stand at PCG's first exhibition please link;

Here

Breakfast Seminars
There are still some spaces left at the breakfast seminars. We will be presenting to key clients and demonstrating the need to make contract changes to show that the contractor is an independent business. The first seminar takes place on October 12 in London. This is an ideal opportunity to influence important clients and we encourage you to invite your contacts. See

Here

Conservative Party Conference
The Conservative Party flagged up that IR35 is still on its political agenda at the Party Conference in Bournemouth last week. Shadow spokesman on DTI, Alan Duncan was reported by the BBC as committing to repeal the measure which he described as a 'pernicious tax'. Then leader of the Opposition, William Hague referred to his encounter with a 'young software consultant' who was leaving the country because of IR35.

"Wanting to pay less tax isn't greedy. The young software consultant that I met who shook his head as he talked of his plans to move abroad because of the stealth taxes he now faces wasn't being greedy.

He just can't understand how this country can ever succeed if he's being taxed out of work in an era when business can go anywhere in the world and we need innovators so badly.”

Here and Here

.....and finally
This week PCG member, Richard Marriott, joined the growing band of contractors who are moving abroad due to IR35. As Richard was standing on Birmingham railway station surrounded by his luggage on the first leg of the journey to New Jersey, he spotted Treasury Minister Andrew Smith MP. Mr Smith and his colleagues are of the opinion that no-one is really leaving the country, so Richard walked up to him with his luggage, showed him the luggage labels, and said: "I am a computer consultant and I am catching a flight to the USA tomorrow morning to work - I am leaving the country on account of IR35." Mr Smith replied: "I'm sorry to hear that, I would prefer it if you stayed here and built your business."

Susie Hughes
(Head of Executive Services)

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