Finance and Business Blog

At the weekend I received my copy of the PCG’s quaterly magazine, Freelancing Matters. Flicking through the pages, it is very easy to see that a large industry has grown up around IR35 and the uncertainty it brings for IT contractors - contract reviews, tax insurance - it’s all there.

I pay around £500 per year between tax investigation insurance and my PCG membership. This is money I didn’t have to spend pre-IR35, and which I wouldn’t have to pay if IR35 was scrapped. If I’m a typical contractor, ie there are loads of other contractors out there paying a similar amount, it’s not difficult to see that IR35 is not bad news for everyone.

If the people making a living out of IR35 are also the same people with whom the OTS is consulting over the future of IR35, it seems pretty obvious to me that the ’son of IR35′ will still somehow ensure that contractors need tax insurance and contract reviews.

Free Accounting Software for Contractors

PCG Chairman, Chris Bryce, has been invited to join the Coalition Government’s Office of Tax Simplification’s (OTS) Consultative Committee that will review small business taxation, including IR35. Since its inception in 1999, PCG has campaigned against IR35.

Accepting the invitation to join the OTS committee, Mr Bryce expressed his delight that the UK’s 1.4m freelance workers would be represented:

“PCG worked tirelessly with the Conservatives in opposition to ensure that a review of IR35 would be carried out following the expected change of Government at this year’s General Election. We produced a paper for senior members of the Party which put forward compelling arguments as to why IR35 was unfair and unworkable.  We also worked closely with the Liberal Democrats at this time.

Our paper has been seen by John Whiting, the Director of the OTS, with whom we have maintained a good relationship over many years. We are delighted that he recognised the importance of having PCG, the Voice of Freelancing, on this vital committee.”

Mr. Bryce added: “This is a crucial time for freelancers.  PCG will continue to offer the OTS every resource available to us and we will be advised by leading tax expert, Chris Sanger, from Ernst and Young. It is our objective that this process will produce a fair and effective solution for all small businesses.”

John Brazier, PCG Managing Director echoed those sentiments saying:

“PCG is a not-for-profit association and as such our views will not be influenced by commercial gain. We are on this committee to represent the needs of our members and we will strive to do this fairly and accurately.”

The OTS will be holding consultation events in locations around the country.  At least two of these, currently planned for Edinburgh and Manchester, will be exclusively for PCG members.  In addition PCG will organise their own regional meetings to ensure that the widest possible input is gathered from its membership.

Mr Brazier added: “By harnessing the views of our members we can deliver the true voice of the freelancer directly to the heart of the decision making process.”

For further information contact:

Jim Cassidy
Prima Communication & Media Limited
Phone: 0141 530 8144 or 0777 595 3990
Website: www.prima-media.co.uk

The majority of people who use Earnings Tracker download it and install it on their own computer. They will, therefore, almsot certainly be the only person who uses their version of the application. For these people, it doesn’t make much sense to have to register with the application.

The next version of Earnings Tracker to be released will be a single user version, which will simplify the application by removing any code that is used to identify individual users.

I expect this new version to be released early next year.