Issue 13; 16 June 1999

Composite Companies | IR35 Time to Make Our Minds Up | Revenue Holds Meetings 10/11 June

Composite Companies: Working hard to put you out of business
A Financial adviser selling Composite Companies as a means of tax avoidance is sending out letters, which are not only selling services that probably resulted in the Government introducing IR35 in the first place, but to add fuel to the fire, are actually insisting they will get round IR 35 by using such a scheme.

I gave them a call to learn some more about this "bottom feeding" activity. Copy of their letter and a record of my conversation is on the site. See http://www.engineerjob.com/analysis

IR 35 Time to make our mind up
Drawing together information contained in existing and recently published Government statistics, coupled with an analysis of the 1981 attempt by the Inland Revenue to put Contractors out of business, the article offers evidence that this apparent failure to close a loophole in 1981 has, in fact, resulted in a booming knowledge based sector enabling New Labour to deliver on its election promises. It concludes "If Clause 34 ( the 1981 attempt to close PSC down) had come in the UK would not be in the position today in which we lead the World in key knowledge based industries. The labour market flexibility, as we have turned from a Nation of Shopkeepers into a Nation of Contractors, coupled by the genuine entrepreneurial "grunt" of this live wire sector has helped deliver an Economy to New Labour able to take care of the less fortunate. It is indeed a Third Way. A stepping stone for the entrepreneurial amongst us, without the benefit of inherited wealth, to make the move from the security and protection of genuine employment to the risks and excitement of business on our own account.

Available at http://www.engineerjob.com/implications.html and also as PDF file, 2 pages 20 Kb http://www.engineerjob.com/afw_13june.pdf

Revenue holds meetings 10th and 11th June 1999
Following submissions from interested parties, meetings have been held on 10th and 11th June 1999 at the Inland Revenue HQ in London.

A Regulatory Impact Assesment with an appendix relating to IR35 was provided at the meeting. This had been approved on 18th May and posted to the DSS web site on 21st May. I understand that no official minutes will be issued. I attended on behalf of the PCG. My notes are available to members on the Confidential discussion forums.

Notes taken by some of the representative bodies at the meeting have been circulated for review to CIOT, IOD, ICAEW, ICAS, PCG, CBI, FRES, Forum 2000, Forum 35, FSB, Other genuine representative bodies, should contact CIOT for further information.

CIOT, following a meeting on 7th June, is taking a lead in organising a meeting on 23rd June to discuss and confirm the understanding of the position on this important issue. Following that the situation may become clearer.
The PCG will not be issuing any news release about these meetings until after the 23rd June.
See http://www.engineerjob.com/a_the_facts.html for list of those who attended
From closer inspection some would appear to be nothing more than an individual Company "badged" as a representative body. Many will ask why should they have an unfair advantage, over other Companies, in hearing from the Revenue, first hand, matters which may affect whether they will be able to stay in business. Further, are their submissions to be given equal weight to that of other, genuine representative bodies?

Kind Regards
Andy White
News http://www.engineerjob.com
Campaign: http://www.ir35update.co.uk