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
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
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
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