PCG newsletter 24/02: August 23, 2002: PCG member’s IR35 win

In this issue:

• Accountax IR35 win at the Special Commissioners
  
• Route35 update
  
• Contracting Matters distribution
  
• Contracting Matters - Route35 Clarification
  
• Real Life Meetings

1. Accountax IR35 win at the Special Commissioners

At a Preliminary Hearing on an IR35 appeal at the Special Commissioners in London on Monday 19th August, whilst acting on behalf of a Professional Contractors Group member, PCG associates Accountax Consulting Ltd successfully argued that an IR35 Section 8 Notice of Decision should be declared invalid and be discharged on the basis that the wording of the Notice was faulty. The Notice failed to identify a specific time period it was meant to cover. The Special Commissioner accepted Accountax's arguments that the section 8 Notice was so faulty that it had to be vacated and made a decision accordingly. The Special Commissioner also expressed concern that the Revenue seemed to be going on a ‘fishing expedition´ (the phrase he used) and that the Revenue must gather all the facts before it makes formal decisions.

There have been many unreported IR35 status cases successfully defended by PCG associates and closed at an early stage, but we believe that this landmark case is the first IR35 case that has been ‘won´ at the Commissioners. Technically it is not an outright victory; the Revenue could attempt to start the assessment process again, but at least they'll have to do the job properly next time.

This case clearly shows the advantages offered to a well-informed contractor with professional representation. It also proves that the Commissioners will not tolerate a wrongly worded assessment presented by the Inland Revenue.

2. Route35 update

Details of Route35 are now available online on the PCG website. From the front page, look for ‘Recent Updates´ and click the ‘Route35 - the Safer Path around IR35´ link. For those that prefer to go direct from this email, the link is
https://www.pcgroup.org.uk/route35.html

If you are applying for the PCG Route35 scheme, please ensure that you put your name and address on the back of your cheque, as this makes your cheque easier to process promptly.

Take up of Route35 by PCG members so far is very impressive indeed. This really endorses our view that it is the sort of cover that contractors simply must have. If you haven't considered it yet, then please do so. It really does do ‘exactly what it says on the can´.

3. Contracting Matters distribution

By the time you read this, all PCG members should have received two copies of Contracting Matters through the post. Why two copies? This is so that you can give away a copy to a non-member. Contracting Matters is packed with information and there are plenty of reasons to join PCG; Route35 is just one example.

Next week you'll be encouraged to suggest further avenues for distribution. If, in the meantime, you haven't received your own copies, then please remind us via the PCG Feedback form, which can be reached using the following link:
https://www.pcgroup.org.uk/scripts/public/contact/form.pl
Please include your name, company name and your current mailing address.

4. Contracting Matters - Route35 Clarification

Contracting Matters contains a flowchart showing how Route35 covers the process of taking an IR35 status case to the Commissioners. It also demonstrates how even if a case is lost, PCG members may be indemnified by tax guarantees from PCG Associates Accountax Consulting Ltd or Qdos Consulting Ltd. Both suppliers have asked us to point out that these schemes carry their own explicit terms and conditions, which may be prejudiced by attempting to invoke Route35 cover first.

If you have qualified for and already purchased, either of these guarantees, relax - you probably don't need Route35. Even better news, both schemes are discounted for PCG members.

5. Real Life Meetings

PCG members hold local meetings to socialise, to network and to discuss PCG issues. These meetings are open to everybody, and new members are welcome to come along.

Herts
*****
Thursday 29 August 2002, 7.30 pm
The Five Horseshoes, 1 Church Road, Little Berkhamsted, Hertford SG13 8LY

Milton Keynes
*****
The next Milton Keynes meeting will take place on Tuesday 10 September on 8.00 pm at The Plough, Stony Stratford.

Details of this and other Real Life Meetings in the forum:
https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f=meet

To promote your local meeting 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.

Issued on behalf of:
Professional Contractors Group

* * * * * * * * * * * * * *
This newsletter is published by the Professional Contractors Group.
Please feel free to circulate the newsletter to other independent contractors who may be interested in joining the PCG. Members are also encouraged to share the latest news and analysis with interested agents, clients and accountants.

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