PCG Newsletter - 30th November, 2001 - 37/01 JR Appeal

In this issue:

• PCG advice on PAYE visits
• Support from PCG – Advice and back up for members
• Comment on pre-budget statement
• Lobbying report
• Appeal reminder
• PCG Shop and book discounts
• Real Life Meetings

Advice on PAYE visits
Members may have noted an increase in Inland Revenue activity in recent weeks. We know that the IR is initiating PAYE visits, which in the event, seem to turn into IR35 status visits.

Since PAYE is Revenue 'bread & butter', a PAYE visit can have a fairly wide remit, which means the IR is entitled to ask a wide range of questions. The IR is allowed to ask to see contracts, as your IR35 status affects your PAYE/NI/expenses etc.

However under the IR code of practice, a status review cannot be completed under the pretext of running a PAYE visit.

PCG has produced a set of FAQs relevant to PAYE visits and the tax investigation insurance. https://www.pcgroup.org.uk/members/paye_faq_taxinvest.html

Questions raised include:
1. Is a normal PAYE audit covered by the PCG Tax Investigation Insurance?
2. What should a contractor do if there are issues that are debatable?
3. What should a contractor do if they are contacted by the Revenue regarding a PAYE audit visit?
4. What is the Inspector entitled to see or ask for?
5. What sort of areas should a PAYE review cover?
6. If I want someone to assist me with a PAYE audit meeting what can I do? (ie no accountant available etc)

See also information on the Tax Investigation Insurance included in membership https://www.pcgroup.org.uk/members/taxinvest_main.html

Support from PCG – Advice and back up for members
Independent observers felt that the IR35 case against contractor "Eddie Battersby" was a case of the IR ‘picking’ on a target and publicising the result. It was a reminder of the need for a strong representative voice for all contractors.

The latest results from PCG advisors makes for very different reading, and this time serves as a reminder to members about the strength and quality of information they buy into when joining PCG – another indicator of how good an investment membership is.

Accountax are yet to lose an IR35 related case, Lawspeed recently publicised two ‘wins’ and Qdos, who provide the Tax Investigation Insurance which is included in PCG membership, have settled 19 cases on behalf of members either for nil tax or small add backs for private expenditure.

A full report on the Tax Insurance scheme is available for members
https://www.pcgroup.org.uk/members/resources/Qdos_tax_investigation_Nov2001.pdf

Of great significance is one case example, initially reviewed as a 'borderline fail' contract by Qdos and seen as a 'fail' by IR, has been *dropped* by the Revenue inspector after Qdos argued the case using knowledge from the contract review and using additional information from the member where they were able to establish the *actual* working relationship.

The case proves that the IR35 issue is never a ‘done deal’ and through shared knowledge and top class back-up, members can work together to protect their interests.

Comment on pre budget statement
Kevin Miller, PCG Finance Director has provided a summary of information relevant to members from this week’s pre budget statement: https://www.pcgroup.org.uk/threads/showpost.pl?f=press-48474&p;=0&v;=c&s;=5
NB You must be a PCG member and logged into the discussion forums to make this link.

Lobbying report
Andy White recently reported on a number of activities under the PCG public affairs brief. The range of issues where PCG is now representing members interests has grown significantly and now includes fast track visas, IR meetings, Party conferences, HP cases, Agency legislation, DTI / Small Business Minister, CBI, Conservative policy, regulations and small business issues. https://www.pcgroup.org.uk/threads/showpost.pl?f=lobby-25670&p;=0&v;=c&s;=5

Appeal reminder
The judicial review appeal takes place next week, 4th –6th December in the High Court. Once again PCG will operate an office nearby and members and interested parties are invited to call in at any time, to.

The Cheshire Cheese,
5 Little Essex Street,
London WC2 - close to the High Court from early til late each day (December 4-6, 2001).
(PLEASE NOTE: This is NOT Ye Olde Cheshire Cheese in Fleet Street).

PCG will be posting a comprehensive background briefing about the case and regular statements and updates on a dedicated news site: http://www.ir35update.co.uk

PCG Shop and Book discounts
PCG-branded merchandise is now available, including

• Document bags
• 2002 Diaries
• Mousemats
• Lapel badges

Details of prices and how to order are available:
www.pcgroup.org.uk/members/resources/pcg_shop.html

Also, members are now able to purchase two key IR35 related books at special PCG rates. The books are written by two of PCG's key advisors, Dave Smith of Accountax and Anne Redston of Ernst & Young:

Use the link below to buy IR35:

• Personal Service Companies By Anne Redston, for £44.50 (save £5)
• Tolley's IR35 Defence Strategies: From Contracts to the Commissioners By David Smith. £22.50 - 50% discount

www.pcgroup.org.uk/members/book_order.html

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:
www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f;=28

REGIONAL NEWS

Real Life Meetings
For the latest information and to start a local group see 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.

Herts - Old Welwyn
Christmas meal: Thursday 29th November at Jade Palace, 23-25 Middle Row, Old Town High St, Stevenage, Starts at 8pm

Cheshire Cheese, London 4/5/6 December (JR Appeal)
Tuesday 4th Dec - Upstairs (old War Room) available all day. Wednesday 5th Dec - Upstairs (old War Room) until 1700, then basement. Thursday 6 Dec - Basement bar all day.

Amsterdam
Thursday 6th December Venue: "In de Wildeman" which is in easy staggering distance of Centraal Station. Time:From 8pm

Christmas meal
Under discussion - see CLC Xmas Bash – Friday 7th December, Details to be released shortly here: https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4221&p;=0&v;=c&s;=5

Yorkshire
Yorkshire RLM Xmas Dinner Friday 7th December Time: 7.30pm Venue: Jinnah on Micklegate in York

Newcastle upon Tyne
Tuesday 11th December Venue: The next meeting will be in the Carriage pub (Archbold Terrace - 2 minutes from Jesmond Metro station) Time: 7.30pm

Thames Valley
Thames Valley Xmas Meal - Tuesday 18th December Venue: Yangze Chinese Restaurant – Windsor Contact: Robert Broxup - [email protected]

Glos/Wilts/Worcs
Christmas 'Do' Tuesday 18th December Time: Lunchtime Venue: Golden Heart, Nettleton Contact: Susie Haigh

Cambridge XMAS Meal
Place : Chilis Grill and Bar Location : Next to the Grafton Centre on East Road Date : Thursday 20 December Time : 7pm for 8pm meal I haved booked a table for 8 for a meal! Please confirm whether you are a definite or not as I have placed a deposit down for 8 and they need to know sooner rather than later to increase the numbers as necessary.

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

Mark Roderick
(PCG Executive Team)

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

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