PCG Newsletter - 23rd September, 2001 - 30/01 Contracts Update

In this issue:

• New PCG draft contracts
• PCG fringe meeting at Labour conference
• Analysis of latest IR FAQs
• Client Briefing Document
• PCG AGM & Conference
• Regional - Do you do business around Peterborough?
• Members Resolutions Regional - Real Life Meetings

New PCG draft contracts

From early morning, Monday 24th September new versions of PCG draft contracts will be available.

The first PCG sample contracts were issued in March 2000 and provided guidance as to the form and content of a typical "business to business" contract for services � i.e. contracts that would place their users outside of IR35 - provided the contracts reflected the reality of the relationship.

Draft agreements were published to cover both the situation where the contractor�s company worked direct to the end client, as well as the more common situation where the contractor�s company has a contract with an agency, which in turn has another contract with the end client.

In light of comments made by the judge at the judicial review, the contracts have been reviewed and updated. A number of suggested approaches were considered including the use of framework agreements. However, it was decided to use the existing drafts as the basis for revised contracts as these are now familiar in the market place.

Anne Redston, partner at Ernst & Young, has reviewed the new PCG model contracts and confirmed that:

"These contacts reflect the current case law which determines whether someone is inside or outside IR35.

Where the 'direct' contract, between the client and the supplier, is put in place and it accurately reflects the relationship between the client and the worker, then, based on current case law, the contractor will not be caught by IR35.

Similarly, where the 'back-to-back' contracts between the client, the agent and the supplier are put in place, and they accurately reflect the relationship between the client, and the worker, then based on current case law, the contractor will not be caught by IR35."

It is a great result for PCG to obtain such a clear view from Anne, who is well known in the accountancy world, where her opinion is greatly respected by all � including the IR. The latest version 5 contracts are available from PCG: https://www.pcgroup.org.uk/resources/ir35_contracts.html

PCG fringe meeting at Labour conference

PCG is running a fringe meeting at the Labour party conference in Brighton on Wednesday 3rd October from 6pm.

All members are urged to write to their MPs to invite them to attend - and members themselves are very welcome. The meeting will address �The Case for Freelancers, Small Business and the Self-employed� and guest speakers include Tony McWalter (Labour MP for Hemel Hempstead) and Nigel Lockett of Lancaster University Management School. Andy White will speak for PCG. For meeting details, letter templates and link to your MP�s address: https://www.pcgroup.org.uk/fringe.html

Analysis of latest IR FAQs

A full commentary and analysis from PCG of the recently published Inland Revenue FAQs on IR35 is available. The analysis from Kevin Miller explains the latest information � and how members should use this. https://www.pcgroup.org.uk/resources/ir35_state.html

Client Briefing Document

PCG is gaining some early success and positive feedback from clients who have seen our client briefing document. Please point your clients to this (public) resource: https://www.pcgroup.org.uk/clients

PCG AGM & Conference

Be sure to check out the excellent programme for the York conference. The conference offers an excellent opportunity to not only meet fellow members, but many of the PCG legal, accounting and tax advisors will be in attendance, as well as the Directors. This week we have added further information on travel � eg York is just 2hours and �38 from Kings Cross - As well as info on local tourist attractions and hotels if you are bringing family. https://www.pcgroup.org.uk/members/conference2001/index.html

Regional - Do you do business around Peterborough?

Do you do business in Peterborough, Cambridgeshire or Lincolnshire? If so you will want to consider sharing a stand with fellow PCG Members at the Business Focus Exhibition to be held in Peterborough on October 17th.

Billed as the Business Event of the Year it is being advertised in local press and radio as well as regional marketing through fliers and guides. If you are an engineer you will be particularly welcome, to show the breadth of services that members of the PCG can offer.

More details including cost can be found on the PCG Forums https://www.pcgroup.org.uk/threads/showpost.pl?f=Commercial-4876&p;=0&v;=c&s;=5 or email Ian at [email protected]

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
2nd Wednesday of each month

Farnborough
3rd Thursday of each month
The Ship,

East End and City CLC
Wednesday 26th September Dirty Dicks, Bishopsgate, opposite Liverpool Street Station followed by a curry on Brick Lane

Herts / Welwyn
Date: Thursday, 25 October Time:
7:30 pm onwards
Venue: The White Horse,
Mill Lane,
Welwyn

Please follow this link to Real Life meetings to get involved
https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f;=meet

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