Revenue approves PCG contract
The Inland Revenue has approved the first non-IR35 contract submitted to them based on the Professional Contractors Group contract.
The contract, drafted by PCG solicitors Bevan Ashford is available - free of charge to members - from the PCG web site. A number of contracts to suit different circumstances are provided, and the range is being extended.
This version - contractor to agent contract - was submitted to the Revenue after being personalised by a PCG member. The Revenue reviewed the contract and concluded that, if the written terms accurately reflected the practical nature of the arrangement, then the contract 'would not be subject' to the proposed IR35 legislation.
Chairman of the PCG, Gareth Williams, said: "This is a major breakthrough for contractors and for the standing of PCG's contract. As far as we are aware, this is the first time the Revenue has brought some degree of certainty to a contract.
"We have always been aware that the contract would have to reflect the true nature of the arrangement and that the Revenue has the authority to look beyond the words. However, it is highly significant that the first indication we have had from the Revenue is that our contract clearly demonstrates the self employed nature of the arrangement. We hope many of our members will be heartened by this and feel more confident about clearing the barrier in this uncertain climate."
For £100 membership, the PCG offers contractors:
*free access to the contracts;
*free tax investigation insurance;
*access to free legal advice;
*comprehensive information on all aspects of IR35, including legal, accounting, lobbying and business;
* contractors 'on-line' forum where information can be shared.
The PCG was formed nearly a year ago as a group to represent contractors in the campaign against IR35. It has recently voted to remain a not-for-profit representative body, and an elected consultative council is overseeing the direction of the group. It has more than 6,000 members and is growing at up to several hundred people a week.
Further details about PCG are available here