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PCG Newsletter - 7 Feb 2002 - 07/02 -
Establishing status & P35
In this issue:
- Establishing Status and contract reviews
- PCG ‘IR35 Toolkit´ seminar road show
- Inland Revenue extend No penalty period
- Agencies experiencing financial difficulties
- PCG elections
- Members ‘yellow pages´ directory
- Real Life Meetings
1. Establishing Status and contract reviews
Many members will have already received their P35 form for
this financial year and will know that it must be returned
by May 19th 2002.
In the run up to last years P35 completion, there was a
rush to obtain information on status. PCG recommends that
members start thinking about this as early as possible,
in order to have access to the best independent advice for
what is a crucial decision.
Last year PCG was able to reach agreement with the Inland
Revenue regarding status decisions (and potential penalties
if the IR then later disagreed with your decision) In summary,
the IR required you to take ‘reasonable steps´
to establish your status:
"if you, in your capacity as employer, act prudently by
taking all reasonable steps to understand and ensure that
your intermediary service company or partnership meets its
obligations under the service company legislation, no penalty
will be imposed"
The Reasonable Steps information paper by Kevin Miller
is available as a pdf or on the discussion forums:
https://www.pcgroup.org.uk/threads/showpost.pl?f=legalandaccount-37&p=0&v=c&s=5
https://www.pcgroup.org.uk/members/resources/Reasonable_Steps.pdf
The options for members are to
1) take professional advice
2) use the Inland Revenue service
3) make up your own mind, using the relevant information
– and recording the decision-making process.
PCG has never recommended using the IR service, unless
members are *absolutely certain* of achieving a pass:
https://www.pcgroup.org.uk/threads/showpost.pl?f=Notice-200&p=18&v=c&s=5
To make up your own mind, see the Reasonable Steps paper,
and we also recommend using PCG´s online contract
review service.
The online status questionnaire provides guidance for both
the contract and the overall business picture. This member´s
only system has been used over 5,000 times since it was
launched one year ago.
https://www.pcgroup.org.uk/cr/index.html
PCG members are also able to obtain formal opinions at
special PCG discounted rates, choosing from six professional
advisors:
Accountax
Bond Pearce
Egos
Hazel Consultants
Lawspeed
Qdos
These are the only advisors with access to the PCG review
system. It is necessary to complete the on-line PCG review
before submitting for a professional opinion.
A full contract review from a professional advisor provides
a clause-by-clause analysis of the submitted contract, set
against the background of the contracting company working
“in business on their own account”.
The reviewers highlight both positive and negative clauses
and generally provide supporting case law references. Where
appropriate, they are also able to provide additional advice
on how the contract may be amended, in order to be considered
business-to-business.
This last point is increasingly important. Well over half
(closer to two-thirds) of contracts that have been submitted
for professional review *pass* IR35. Of those that fail,
many members are able to take advice and make amendments
to turn their situation into a pass.
Taking professional advice will give you confidence and
certainty for this decision. Full details at:
https://www.pcgroup.org.uk/cr/index.html
Please Note: Both Qdos and Accountax have indicated that
the cost an opinion will increase from 1st March 2002.
2. PCG ‘IR35 Toolkit´ seminar
Kevin Miller will address the issue of completing the P35
form at the ‘IR35 Toolkit´ seminar roadshows
in March and May. Both Dave Smith of Accountax and Ben Chaplin
from Qdos join Kevin making presentations and on the Q&A
panel. Seminars take place:
5 March 2002 Heathrow; Renaissance Heathrow Hotel
7 March 2002 Bristol; Holiday Inn
1 May 2002 Aberdeen; Britannia Hotel
2 May 2002 Edinburgh; Caledonian Hilton Hotel;
3 May 2002 Manchester; Renaissance Manchester Hotel
https://www.pcgroup.org.uk/resources/seminar_02_02.html
3. Inland Revenue extend NO penalty period
The Inland Revenue have again indicated that there will
be *NO* penalties for an incorrect P35 in 2002, as long
as certain conditions are met:
* The return (P35) is submitted by 19 May 2002
* The return (or a covering letter) says that the service
company legislation applies to the employer
* An amount is included in the return for the tax and NICs
due on the deemed Schedule E payment
* It is made clear in a covering letter that the amount
is provisional pending finalisation of the deemed Schedule
E payment calculation
* A correction to the return and accompanying documents,
notifying the correct final amount for the deemed payment
and the tax and NICs due is made by 31 January 2003
* Any additional tax and NICs due as a result of the correction
to the return are paid by 31 January 2003.
Similarly, last year´s provisional returns needed
to be paid by 31st January this year – so any member
that still has this outstanding is advised to sort out their
position immediately.
4. Agencies experiencing financial difficulties
A number of agencies are reported to be experiencing various
degrees of financial difficulties. Members looking for further
information are advised to monitor the “Client/Agency
matters” discussion board.
https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f=agencies&v=c&s=5&p=0
In particular we are interested to hear from any members
and non-members who have recently been contracting via Innovation
International Ltd, or one of the related companies. Please
urgently email [email protected]
with “Innovation” in the title.
5. PCG elections
Dates and details for this year´s elections to the
PCG Consultative Council and Board of Directors are being
finalised. Now is the time to consider if you wish to stand
for election. Full details of the election rules and procedures
will be sent to members very soon.
6. Members ‘yellow pages´ directory
PCG members have collated a list of ‘Goods & Services´
that members are able to offer other members. If you are
a potential buyer or supplier of anything from web-hosting
to guitars check out:
https://www.pcgroup.org.uk/threads/showpost.pl?f=Commercial-6788&p=1&v=c&s=5
REGIONAL NEWS
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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.
Yorkshire
* * * * * * *
Friday 8th February
Venue: Cedar Court (formerly Hilton) Hotel, Halifax (just
off M62 J24)
Time: 7.30pm
Bristol
***********
A meeting / meal is being organised in Bristol on Saturday
9th February.
Farnborough
***********
Wednesday 20th February
Prince of Wales
Time: from 7:30
Glos/Wilts/Cheltenham
************
Wednesday 20th February
Golden Heart, Nettleton, nr Birdlip, Glos (A419)
From 7.30
Newcastle
***********
Wednesday 20th February
Carriage pub (Archbold Terrace - 2 minutes from Jesmond
Metro station)
at 7.30pm
Wokingham
***********
Thursday 28th February
The Ship
Time: from 7:30
Welwyn
**********
Date: Thursday 28th February 2002
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
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
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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