|
24th July, 2001 - 25/01 Audit Checklist
In this issue:
- ‘Audit trail’ your business – PCG checklist
- IR agree status
- Notice: PCG Terms & Conditions
- Representation: PCG at Jobserve event
- PCG talks to accountants
- Lobbying: MP database updated
- FSB meeting
- ATSCO Initiative
- Date for diary – PCG AGM and Conference
- Member services - Tax Investigation Insurance
- Members Resolution
- Real Life Meetings
‘Audit trail’ your business
PCG has published a comprehensive checklist for members
to ‘audit’ the consultancy status of their businesses. Being
in business on your own account (BIBOYOA) is an important
self-employment pointer and collating information to demonstrate
your status will not only increase certainty regarding your
status, but will also provide evidence to the IR in the
event of an investigation.
In 1999, when two PCG members, working for the same client,
same contract, same site had their status reviewed by a
senior Revenue official, BIBOYOA made the difference with
one member inside IR35 and another deemed outside the regulations.
By collating pointers to self- employment, members will
undoubtedly strengthen their situations.
The Audit includes details of company history, trading
and operating history, Directors background, marketing and
business planning, as well as IR35 related information.
Not all businesses will necessarily have access to, or need,
all of the recommended documentation / records. Be realistic
and pragmatic when assessing your own situation: https://www.pcgroup.org.uk/members/resources/AUDITFORBIBOYA.pdf
IR agree status – PCG Portal mentioned
The importance of BIBOYOA as a way of determining self-employment
status is demonstrated in a recent case reported on the
PCG discussion forums. A Revenue Inspector accepted that
a contractor was not caught by IR35 on the following counts
– in order of relative importance:
- In business on his Own Account
- Contract
- An Absence of Employee Characteristics
Importantly one if the BIBOYOA indicators was the fact
that the company advertised for business on the PCG Portal.
Full details: https://www.pcgroup.org.uk/threads/showpost.pl?f=legal-38299&p;=0&v;=c&s;=5
PCG Portal
https://www.pcgroup.org.uk/portal
Notice: PCG Terms & Conditions
PCG has faced several instances recently of inappropriate
use of PCG website / forums / membership. It is necessary
to remind all members that we have clear policies to prevent
potential misuse.
Full PCG terms and conditions of membership are available
https://www.pcgroup.org.uk/resources/pcg_terms.html
Text from a reminder posted to the Noticeboard is included
at the end of this newsletter. If you are unsure of PCG
terms, please take time to read the link above or the reminder
below.
Representation – PCG at Jobserve event
Jane Akshar made a presentation promoting the PCG on
both days of the recent Jobserve careers fair. Around 1,500
visitors attended the fair and both members and non-members
stopped at the PCG stand.
https://www.pcgroup.org.uk/threads/showpost.pl?f=general-64136&p;=3&v;=c&s;=5
PCG talks to Accountants
Kevin Miller, PCG Finance Director also presented to
the London branch of New Zealand Institute of Chartered
Accountants. Making accountants and key advisors aware of
the intricacies of IR35 is important as PCG seeks to ensure
members receive the best possible advice for their individual
circumstances.
Lobbying – MP database updated
Following the election PCG has updated the MP database
and lobbying system. The MP database now lists the MP, other
candidates for the constituency and the voting results as
well as listing other PCG members in the constituency and
any correspondence.
PCG is working on draft lobbying letters highlighting the
issues for each of the campaigns we are working on – watch
future newsletters for details! https://www.pcgroup.org.uk/scripts/members/mp/index.cgi
FSB Meeting
As part of the PCG / FSB cooperation agreement, PCG
representatives met Federation of Small Business officials
last week to discuss, amongst other things the effect of
IR35 on small business and the legal challenge. https://www.pcgroup.org.uk/threads/showpost.pl?f=PCGbusiness-7279&p;=0&v;=c&s;=5
ATSCO Initiative
After an approach by ATSCO, PCG has been asked to contribute
to a new “Code of Practice” for the agency body. https://www.pcgroup.org.uk/threads/showpost.pl?f=PCGbusiness-7292&p;=0&v;=c&s;=5
PCG AGM and Conference – date for your diary
PCG is planning the 2001 AGM and conference on Saturday
13th October in York. More details to follow.
Member services – Contract Review Service
The number of services available to PCG members has
increased quickly and consistently and we know that many
members join to access specific benefits. In each newsletter
we will ‘profile’ a service and provide details to ensure
that members are getting the most value from their PCG membership.
More details of member services can be found at https://www.pcgroup.org.uk/guide.htm
Contract Review Service
IR35 creates too much uncertainty and inhibits the
operation and growth of a business. Even businesses outside
of the regulations need to gather evidence to prove their
status. If asked, the IR provides a non-binding opinion
on status – but PCG does not recommend using this service.
The PCG Contract Review Service operates on two levels
and aims to provide independent advice regarding the IR35
status of a contract. The Reviewers aim to use similar approach
to the IR – and of course relate the Reviews to existing
case law.
Stage one is the online questionnaire, which is free to
members and provides immediate feedback. However the very
nature of the online system and the complexity of IR35 mean
that in many cases, further advice is required.
Stage two allows you to send your completed questionnaire
plus supporting information to a PCG retained advisor for
an opinion. There is a cost associated with this service
and each of the six suppliers offers terms, including a
discount for PCG members. The suppliers usually provide
suggestions on how each situation can be improved. Results
of completed reviews are used to build a database of ‘pass’
and ‘fail’ contracts. https://www.pcgroup.org.uk/cr/index.html
An indication of the value of PCG services is available
at https://www.pcgroup.org.uk/resources/pcg_value.htm
Members' resolutions
There is a members' forum on the site where members
can post their own resolutions and seek support. Current
'live' resolutions can be viewed at: https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f;=28
PCG is still reliant on contributions from members to fund
the legal challenge. Members who wish to contribute to the
fund should go to: https://www.pcgroup.org.uk/members/legal/legalpledge.html
REGIONAL NEWS
Real Life Meetings For the latest information and to start
a local group see https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f;=meet
To promote your local meet through the newsletter - email
[email protected] with REGIONS in the subject matter,
details of the event and a name and email contact point/or
phone number for further information.
Thames Valley
The Thames Valley group now follows a rotating schedule:
1st Tuesday of each month - Basingstoke (next Tuesday 7th
August – Hogs Head)
2nd Wednesday of each month - Farnborough (Wednesday 15th
Prince of Wales pub)
3rd Thursday of each month – The Ship, Wokingham (Thursday
23rd)
http://www.adb-enterprises.com/pcg_tv.html
Hertfordshire – Welwyn
Inaugral meet on Wednesday 25th July at 7pm At the
White Horse, Mill Lane, Welwyn (not to be confused with
Welwyn Garden City) Contact Pete Coles: [email protected]
Chichester
Thursday 2nd August at 8pm
Old Cross in North Street
Contact John Knapp: [email protected]
West Midlands
Monday 6th August at Rose & Crown, on A435 near Jn
3 M42.
Contact Ian on [email protected]
Members are coordinating meetings in the following locations:
West London
Kent
West
Wilts
Redhill
East Mids
Please follow this link to Real Life meetings to get involved
https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f;=meet
Reminder of PCG Terms and Conditions
Firstly members are expected to show courtesy to others
and demonstrate respect, good taste and decorum.
Secondly, members are reminded that comments about an individual
or an organisation should not be based on hearsay but should
be based on information or events that you have verified
or for which you have evidence or which is in the public
domain and which you know are not defamatory. If in doubt
about the facts then members should refrain from posting.
Unsolicited emails
Recently members reported instances of receiving "spam"
email. Sections 1c and 1d expressly prohibit this practice
as unacceptable online behaviour:
c) Sending chain letters or other junk mail.
d) Sending unsolicited advertising or promotional material
to others.
Releasing private PCG comments
There have also been several reported incidents of
members forwarding copies of forum threads, correspondence
and information to non-members. The forums are confidential
to members and copying discussions to non-members is a breach
of terms and conditions.
e) Failure to respect the confidences of other members
using the Fora. and
10e) Members should NOT:
a. Repeat externally, whether directly or indirectly, any
comments made on the Forums (especially those which could
reasonably be considered to be illegal or defamatory to
individuals or organisations.)
Rule 5 states
“The PCG wishes to encourage active and open debate but
does not in any way sanction illegal behaviour or defamatory
publications.”
Sharing information and knowledge lies at the core of the
PCG’s activities, but this should be done in a professional
manner at all times.
Copyright issues
Finally members must also be careful not to breach
copyright when posting material onto the site. This applies
in particular to the posting of third party contracts. Without
express permission, posting a complete contract or a substantial
extract almost certainly breaches copyright and could lead
to the member concerned, and PCG, facing legal action. Members
seeking guidance should post *brief* extracts or a description.
For example “there is a clause in a contract I am negotiating
the effect of which is means that I am obliged to work from
a particular office on particular days - is this reasonable?”.
Failure to follow these terms and conditions may result
at worst in legal action against both the member and PCG
or at the very least in a considerable waste of PCG time.
Many thanks for your co-operation. Susie Hughes (Head of
Executive Services)
This newsletter is published by the Professional Contractors
Group. Please feel free to circulate the newsletter to other
independent contractors who you know, and who may be interested
in joining the PCG. Some links in the newsletter will take
you into the password-protected members' area of the PCG
website. If you have forgotten your password, contact https://www.pcgroup.org.uk/scripts/public/access/form.pl
To view the Forum links in this newsletter, you must
be first logged into the Forum. Further details available
at https://www.pcgroup.org.uk/members/discussion_forum.html
|
