PCG Newsletter - 2nd October, 2001 - 31/01 Contract Opinion

In this issue:

• Contract Opinion Document
• PCG AGM & Conference
• Fringe meeting at Labour Conference
• New PCG draft contracts
• Client Briefing Document
• Regional - Do you do business around Peterborough?
• Members Resolutions Regional - Real Life Meetings

Contract Opinion document

During the JR, the judge made damning comments regarding uncertainty surrounding IR35 and the Inland Revenue’s handling of the legislation.

Already PCG has issued guidance to reduce the uncertainty - the “Audit” document is a checklist to demonstrate you are in business on your own account.

https://www.pcgroup.org.uk/members/resources/AUDITFORBIBOYA.pdf

Recently a PCG team met with the IR and agreed further guidance aimed at reducing uncertainty. The Clearance Procedure document provides guidance as to what information you need to present to the Revenue to ensure they are aware of all relevant facts when they make an IR35 assessment of your business.

The purpose of the Clearance Procedure is:

• to ensure members understand what is required to pass the status tests,
• to assist members to apply those requirements in their working relationships
• to demonstrate to the Revenue wherever possible what the correct interpretation of status tests is in the situation of knowledge based contracting and
• to obtain Revenue agreement to practical guidance that assists PCG members to pass those status tests.

The Inland Revenue accepts our guidance as being objective and constructive. The PCG document will be passed to frontline Revenue Inspectors so that they are aware that information they receive which meets these guidelines should normally be adequate for them to issue a contract opinion without needing to seek further information – either from the contractor or the agent/client.

NB *Revenue Contract Opinions – PCG policy*

The development of this clearance procedure does *not* mean that PCG has changed its policy on seeking Revenue clearance. PCG has said all along that seeking a Revenue opinion on your contract is a matter for the contractor to decide taking into account the factors for and against. (see link below for further details) The Clearance Procedure covers each typical scenario:

1. Written contract directly between client and service company.

2. written contract between service company and agency, copy of agency/client contract available to contractor

3. written contract between service company and agency, copy of agency/client contract not available

4. no written contract, but arrangements made directly between client and service company. Most important of all is the suggested client confirmation letter. All contractors should seek to obtain such a letter whenever there is any question that the actual terms under which they are working differ from either those set out in their contract or might be in conflict with the terms of any other contracts in the chain between them and the client e.g. the agent/client contract.

A sample letter is provided.

Full details:
https://www.pcgroup.org.uk/members/resources/clearance_proc.pdf

Read more about PCG’s discussions with the IR in the Lobbying forum
https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f;=lobby

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

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

New PCG draft contracts

Version 5 of the PCG draft contracts is now available, including post JR updates. Anne Redston, partner at Ernst & Young, has reviewed the new contracts and has confirmed that "Where the contract is put in place and it accurately reflects the relationship…then, based on current case law, the contractor will not be caught by IR35."

https://www.pcgroup.org.uk/resources/ir35_contracts.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

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
1st Tuesday of each month

Farnborough
2nd Wednesday of each month

Wokingham (The Ship)
3rd Thursday of each month

East Mids
Thursday 4th October
7.30pm Admiral Rodney,
Woollaton.

Chichester
Thursday 11th October
The Old Cross,
North Street,
Chichester.

Newcastle upon Tyne
Wednesday 17th October, 2001
The next meeting will be in the Carriage pub (Archbold Terrace - 2 minutes from Jesmond Metro station) at 7.30pm

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

Blackpool/Fylde/Preston
New group being started: https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-3947&p;=0&v;=c&s;=5
Please follow this link to Real Life meetings to get involved https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f;=meet

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