Parasol defends PCG's independence

A recent debate was triggered about the trade association, the Professional Contractors Group (PCG) compromising its independence and damaging its ability to lobby objectively for contractors, after it launched an umbrella service with corporate partners, Parasol.

The views expressed at the time by the Chief Executive of specialist accountants JSA Group, Barry Roback, carried some weight, as JSA is an associate member of PCG, one of the first accountants to be accredited by the Group and a contributor to its campaigns. Now, Parasol, who provide the PCG umbrella service, has spoken out to support the decision of PCG to adopt an umbrella company service.

Parasol's Project Manager for the PCG scheme, Jon Harris, said: "You need only look at the range of contractor bulletin boards to see the confusion in the contracting community about how you can and cannot be paid, and the liabilities and obligations which are involved in making decisions about business operation methods. The aim of the PCG (QU) is to provide a safe, reliable solution – one that PCG could rely on being provided by an organisation committed to compliance, high quality service and ongoing development and which would give agencies, end users and contractors the confidence they needed in choosing to work through an Umbrella service."

Lobbyists

One particular point which was raised in the original article was that the whole industry of managed company service schemes is currently under review by the Government in what it sees as an attempt to crack down on artificial tax arrangements.

As such, it was argued, that a trade association which claims to speak to the Government on behalf of contractors in the sector, could have its independence compromised by being commercially involved in one of the methods which could be under discussion.

Rob Crossland, Managing Director of Parasol Ltd, disagreed. He said: "Far from detracting from the PCG's ability to represent the freelancing community, the provision of an Umbrella Service will enhance their ability to represent the UK's flexible workers. Providing approved quality services which are well managed and fully compliant will enable PCG to represent a community which is much wider than a perception of only representing limited company contractors, and begin to lobby effectively for a more intelligent view on flexible employment law in the UK and Europe.

"With a UK requirement for around 14 million flexible workers, much needs to be done to recognise and support the status of flexible workers in a legislative environment which is largely focused on permanent employees".