PCG newsletter 24/02: August 23, 2002:
PCG members 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.
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