Three possible outcomes as PCG waits on Court of Appeal judgement

In this issue:

• Summary of Court of Appeal hearing
  
• PCG advice on PAYE visits
  
• CFT Insurance Policies and the Iron Trades
• Insurance Company
  

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Summary of Court of Appeal hearing

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Judgement was reserved in the recent PCG Court of Appeal IR35 case, and, as yet, there has been no indication when the judges will announce their decision, although it is hoped that it will be before the end of January. Gareth Williams, PCG deputy Chairman provided a summary of events from the Appeal court for members and interested parties.

At the original JR hearing in March, the judge agreed with PCG on the facts of the case, but ruled against on points of law, it was these legal issues relating to state aid and freedom of movement which occupied the three days.

There are three possible outcomes from the Court of Appeal:

1) PCG win – in this scenario, the Appeal judges decide the High Court was wrong and IR35 is contrary to European law, so IR35 is struck down.

2) IR win – Appeal judges uphold decision of High Court.

3) Reference to Europe – the Appeal judges also have the option to refer the issue to the European courts.

Whatever the outcome, PCG will provide news to members as soon as possible.

The Court of Appeal summary from Gareth Williams and other information is available at:

Further discussion is available for members who are logged into the forums at:

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PCG advice on PAYE visits

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The newsletter 30th November included advice for PCG members who are subject to PAYE visits from the Inland Revenue where IR35 questions may be asked.

In particular it is worth noting the advice:

Question - what should a contractor do if they are contacted by the Revenue regarding a PAYE audit visit?

Wherever possible arrange for the records requested to be viewed at the accountants.

Only supply the information asked for and check that they are entitled to see what they have asked for.

Do not be present at the time they review the records. There is no requirement to attend an interview. This way you cannot say anything that will prejudice the enquiry if the Inspector asks leading questions. Therefore the Inspector will be forced into putting his requests for further information in writing.

If you do want to be present then be very careful how you answer questions. If in doubt ask the Inspector to put his request in writing so that you can discuss the response with one of our consultants.

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CFT Insurance Policies and the Iron Trades Insurance Company

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PCG is assisting the Serious Fraud Office in their investigation of the activities of CFT Insurance Group Services. The SFO has asked us to help them contact any contractors who used CFT and who received from CFT an employer's liability insurance certificate, which purports to have been issued by the Iron Trades Insurance company. The SFO already has details of three such policies and has contacted the contractors concerned.

However, if there are any other contractors who have such an employer's liability insurance certificate - which may bear the signature of W Robert Hardy, Chief Executive of Iron Trades - would they please contact Detective Sergeant Andy Fyfe on 020 7239 7202 or by e-mail at andrew.fyfe@sfo.gsi.gov.uk

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PCG Press