Feeds

IR35 protesters play Human Rights card

Tax refugees

  • alert
  • submit to reddit

The essential guide to IT transformation

The Professional Contractors Group (PCG)is off to the High Court today to seek a judicial review of IR35, a new tax law which severely curtails the self-employment status of its IT consultant members.

The PCG argues that IR35 contravenes the European Convention of Human Rights as it is a "de facto confiscation of property".

Furthermore, IR35 is "illegal state aid as the Government is taxing small contractors more harshly than their larger competitors".

IR35 is also a "breach of the right of establishment as it discourages contractors from trading in the UK".

Ninety thousand people have been affected by IR35, according to Inland Revenue estimates, cited by the FT. The Inland Revenue reckons that it will claw an extra £350 million from this constituency of self-employed consultants who - it argues - have avoided tax by sheltering under one-person companies, when they were, in effect de facto employees of the companies they were working for.

The Inland Revenue contrasts the 21 per cent in tax and National Insurance contributions on an income of £50,000 typically paid by the consultant operating a one-man business with the 35 per cent stumped up by an employee on an equivalent salary.

The PCG says this is comparing chalk with cheese - as consultants do not receive employee benefits for the companies they work for.

The PCG's background briefing document is available at:
www.shout99.com. ®

Related stories

CBI, FSB, PCG ask for rethink on IR35
Contractors raise £500K for IR35 court challenge

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.