Issue 19; 20 September 1999

Inland Revenue | PCG - The Future | Prime Minister | Prof. John Burton | Institute of Fiscal Studies | Politicians | Off-shore Companies | Media | ..and finally

Inland Revenue
Unsubstantiated rumours continued to abound - gathering ground by the continued silence from Ministers and Revenue. We were asked by journalists to comment on the next 'secret meeting' with the Revenue, scheduled for Friday September 17. As we had not been invited we re-iterated the points about transparent consultation and workable solution. On Friday afternoon, PCG was invited to a meeting with the Revenue this Wednesday. Kevin Miller will be attending on behalf of the PCG. The attendance list appears to be restricted to the ICC and PCG, (Chris Steggles a PCG committee member will be attending on behalf of the ICC) together with representatives from the Contractors accountants; 360 group, Forum 35 and Forum 2000. Other groups such as FSB and FRES expressed surprise that they had not been invited.

PCG-the future.
The PCG Executive and the Committee have prepared a paper for review by members which looks at the first three months and puts forward a proposal to broaden the services so that it can act as a proper Independent representative body for Contractors in the IT and engineering sector, rather than just a Lobbying body. In addition we need to send a message to Government that we are not going to go away. The paper and Internet ballot are available on the members site, see links at end of this newsletter. The closing date for Votes is Friday 24th September at 1600 hours.

Prime Minister
Andy White wrote a letter to the Prime Minister expressing PCG's concern at the lack of real consultation by Treasury Ministers despite the guidelines in the Better Regulation Guide; the flawed assumptions in the Regulatory Impact Assessment; the Treasury's failure to understand the entrepreneurial spirit within the knowledge-based sector; and that, in its current form the main beneficiaries would benefit international IT companies, like EDS, at the cost of home-grown entrepreneurs. He concluded by suggesting self-regulation could be considered and asked the Prime Minister to ensure there is consultation in line with the approved guidelines, clear proposals are issued with a full RIA and all relevant interested parties are included in the process.

Prof John Burton
Prof John Burton has completed his report and it is now with the Adam Smith Institute-(ASI) who are arranging publication. They estimate it will be available towards to end of this week. The PCG commisioned the report, but has been supported by sponsorship from FSB, ICAEW, CIOT, ATIES and FRES. We are liaising with the ASI in order to obtain maximum impact. Several journalists are already awaiting its publication.

Institute of Fiscal Studies
The Institute of Fiscal Studies is carrying out a massive study into the problems of classifying self-employed businesses. Started in 1997 the report has yet to be published, but it would seem foolhardy in the extreme if their work was not to be considered during a consultation period with regard to IR 35. It would strengthen the argument to allow Industry to work with Government over a twelve month period to resolve some of the problems that have been identified, by self regulation. We have provided some of our analysis and will be copying Professor Burton's report to them. We are keeping in close contact with them.

Politicians
The appointment of an e-envoy (Alex Allan); an e-Minister (Patricia Hewitt) and the Prime Minister's continued praising of the IT sector together with his own desire to become more IT-literate, led to a flurry of letters from PCG members pointing out the irony of these moves. The PCG took onboard the advice about e-commerce and can announce you can now join and pay via our secure server using your credit card. This will allow instant access to the PCG members area
Gordon Brown (and Al Gore) will be addressing a New Statesman summit about the impact of the Internet on the economy.

Off-shore companies
Kevin Miller, PCG accountant, has produced an analysis of the considerations and pitfalls for people thinking about off-shore companies. Available on the members discussion forums, this follows a number of posts where contractors have asked questions.

Media
We have continued to brief the media throughout the week on our exclusion from the consultation process, the Prof Burton report and the possibility of knee-jerk reaction. The BBC considered running a piece and has said it will return to the subject if (and when) there is a 'hard news peg' attached to it. Further details are available on the legal and accounting forum.

And finally......
By popular demand, the PCG is producing T-shirts and sweat shirts with the slogan "IR35 - It could be you". Details available on the forum or [email protected]
In a BBC online interview, LibDem leader Charles Kennedy was asked about IR35 and he professed ignorance. Within minutes the forum started buzzing; several members told of the previous correspondence they had received from him supporting their stance; and the briefing letters he had received on the subject. Mr Kennedy then became the target of a concerted letter-writing drive reminding him of what he already knew. A LibDem leader caught with his 'pantsdown'.

Kind regards
Susie Hughes
Press officer for the Professional Contractors Group

Information Links: Public
PCG letter to Tony Blair, 17th September
Petition to be sent to Gordon Brown by 8th October (download and send)

Information Links: Members.
Proposal 3: To turn the PCG into a representative body - Available as html link or pdf file
For Kevin Miller's analysis go to discussion forums, go to legal and accounting and look for "Use of Offshore Companies- some thoughts".