PCG Newsletter 13/02, 28 Mar 2002 - PCG members at Commissioners

In this issue:

• PCG supports two members to the Commissioners
  
• PCG PI Insurance
  
• PCG writes to Gordon Brown
  
• PCG Elections
  
• IR35 Toolkit Seminar Roadshow - Scotland
  
• Real Life Meetings

1. PCG supports two members to the Commissioners

PCG members Lisa Fernley and Mark Sheerin are headed for the Commissioners to contest the Inland Revenue´s determination of their IR35 status and PCG is supporting them both.

Although neither Lisa´s nor Mark´s cases are likely to have much impact on the boundaries of case law, both cases will be of particular interest to members.

They are arguable “passes” using existing case law tests and will serve as reminders to the Inland Revenue that they cannot lightly ignore existing case law. However, neither case was inevitable as both Lisa and Mark had approached the Revenue themselves as they both believed their contracts would pass.

This is another example of how unclear the law is, as different experts and the Revenue come to different conclusions, many of which will be open to challenge.

Lisa and Mark have agreed to be case studies and they will keep the PCG membership fully informed of as their cases develop.

Further information about the cases can be found on PCG´s notice board:

https://www.pcgroup.org.uk/threads/showpost.pl?f=Notice-425&p=0&v=c&s=5?nl280302

2. PCG PI Insurance

PCG has just completed renegotiating the professional indemnity insurance scheme for PCG members with our insurers Randell Dorling. The main points emerging from discussions are:
 
1] Rates will remain the same as for the last two years, even though the scope of the scheme has been improved
2] The main improvements are that non-IT PCG members will now be included in the £1 million of professional indemnity cover that is shared between all PCG members who take out professional indemnity insurance through the scheme. This mainly affects the engineering members who have not benefited in the past from this shared layer.
3] That shared layer of £1m is now subject to one reinstatement in the policy year in the event that it is exhausted by claims. This effectively doubles the amount of cover available to PCG members.
Negotiating these improvements has delayed Randall Dorling sending out renewal notices but cover will run from the date the previous policy expired. For new policyholders Randall Dorling are able to backdate the PI cover as far as is needed while the PL and EL cover can be backdated to April 2001. This may be of help to contractors who were victims of the problems at CFT.
Full details of the amendments to the policy can be found at
https://www.pcgroup.org.uk/threads/showpost.pl?f=Notice-427&p=0&v=c&s=5?nl280302

3. PCG writes to Gordon Brown

The PCG has written to Gordon Brown in advance of the Budget, to call for greater certainty for small businesses.

PCG Chairman Jane Akshar wrote: "On behalf of our membership we would ask you to give consideration to one particular issue in your forthcoming Budget. Any business, small or large, wants to operate in an environment of certainty. It is the Government´s responsibility to provide that
environment. However, the introduction of IR35 has meant that tens of thousands of small businesses in the knowledge-based sector cannot plan for the future or make commercial decisions as they are unsure where the boundaries are".

The PCG pointed out the areas where the confusion existed:

• The lack of relevant case law to determine status is leading to conflicting decisions;
  
• Small businesses are operating without certainty and even the Revenue´s own guidance recognises a situation where the status is unclear;
  
• Despite this acknowledged climate of uncertainty, there is still the threat of penalties if the contractor gets it wrong;
  
• Accounting and legal experts are unable to find common ground;
  
• IR35 causes confusion as it corrupts the traditional boundaries between personal and corporate taxation;
  
• The creation of an artificial person, that of a ‘disguised employee´ where the contractor is deemed to be an employee for one purpose (tax and NI) but not for another (statutory and discretionary benefits).

Letter to the Chancellor:
https://www.pcgroup.org.uk/resources/Budget_Letter_2002.pdf?nl280302

Press notice:
https://www.pcgroup.org.uk/press_pn0502.html?nl280302

4. PCG Elections

The PCG Elections for the Consultative Council continue, with voting closing at 5:00 pm on 18th April, 2002. Once again, you are urged to vote in these elections. You can vote at
https://www.pcgroup.org.uk/scripts/members/elections/2002/elections.pl?nl280302

For more background info on the voting process, go to
https://www.pcgroup.org.uk/members/elections/2002/index.html

5. IR35 Toolkit Seminar Roadshow - Scotland

The popular IR35 Toolkit seminar roadshow visits Scotland in May, giving those working north of the border the opportunity to attend this helpful seminar. The venues are Aberdeen on Wednesday 1st May, and Edinburgh on Thursday 2nd May. Afternoon and evening sessions will be held in both venues. For further details, or to book online, go to
https://www.pcgroup.org.uk/resources/seminar_02_02.html

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.

Gibraltar
**********
Any contractors working in Gibraltar, wishing to meet up and compare notes
re living and working on the Rock, contact Chris on [email protected]

Guildford
**********
Date: Tuesday 2nd April
Time: 7:30pm
Venue: Wetherspoon
https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4646&p=0&v=c&s=5

West Midlands
**********
Date: Thursday 4th April
Time: 7:00 pm onwards
Venue: Rose and Crown at Junction 3 of the M42
https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4609&p=0&v=c&s=5

Yorkshire
**********
Date: Friday 5th April
Time: 7:00 pm onwards
Venue: Cedar Court Hotel, Ainley Top, Huddersfax (just off M62 J24)]
There will be a presentation (starting circa 8:00pm) by Richard Axe, Head of Club UK Online
https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4683&p=0&v=c&s=5

Thame, Bucks/Oxon Border
**********
Date: Tuesday 9th April
Time: 8.00 pm onwards
Venue: Swan Hotel, Thame
https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4575&p=0&v=c&s=5

East Midlands, Nottingham
**********
Date: Thursday 11th April
Time: 6.00 pm onwards
Venue: The Admiral Rodney, Wollaton
https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4638&p=0&v=c&s=5

Manchester
**********
Date: Friday 12th April
Time: 7:00 pm onwards
Venue: Waldorf Pub, Gore St (near Piccadilly Station)
https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4607&p=0&v=c&s=5

Peterborough
**********
Date: Wednesday 24th April
Time: 8:00 pm onwards
Venue: Paul Pry, Lincoln Rd, Peterborough
https://www.pcgroup.org.uk/threads/showpost.pl?f=meet-4671&p=1&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
(having problems?? have you read this?...https://www.pcgroup.org.uk/members/discussion_forum.html)

Alison Edwards
(PCG Executive Team)

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