Feeds

Anti IR35 group angry about bypass tax claims

Advertising standards spat

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

The Professional Contractors Group - the campaigning group against IR35 tax laws - has reported a recruitment agency, Computer People, to the Advertising Standards Authority for claiming it can bypass the tax legislation.

The IR35 legislation removes various tax benefits from contractors by assuming that they are employees of a firm rather than a third party. The PCG says Computer People is using confusion over IR35 to make the untrue pitch that by using an agent, rather than dealing direct with clients, they can avoid the legislation.

Not true, says the PCG. Its director, Ian Durrant, said: "The Government's legislation has created a mine-field of real confusion and chaos in the contracting sector. However, some agencies are now capitalising on this fear, uncertainty and doubt (FUD) to make dubious claims for their own commercial advantages. It is bad enough that our members have to contend with the real problems that this legislation has brought, without Computer People and others using this climate to try to 'scare' clients away from contracting directly."

Computer People's material points out the problems with being assumed to be an employee of a company and then states "contractors working through an Agency are not deemed to be employees". There is no evidence of this, says the PCG, even quoting a case in which the opposite was ruled to be true, in its letter to the ASA.

An ASA spokeswoman explained how the system works: "When a complaint arrives, it is logged in and then distributed to the team that works on that area. It normally takes around 10 to 12 days but can take longer, depending on how fast the advertiser gets back to us. The council will make a decision on it and then both parties will be informed." Once a month, the ASA also produces a booklet featuring all the complaints it has had and how they were resolved.

Computer People is having a meeting concerning the complaint this afternoon and was unwilling to comment when we went to press.

As an aside, the PCG may be interested to know that its term for such confusion - FUD - has very different connotations north of the border. Glaswegians in particular are unlikely to respond favourably if you refer to them as Fud-face. ®

Related Links

The PCG's letter to the ASA
The PCG

Related Story

Tories say they will repeal IR35 legislation

Remote control for virtualized desktops

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.