Feeds

PCG appeals against IR35 ruling

Still contrary to European law, it says

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

The Professional Contractors Group is to take the government to the Court of Appeal over the controversial IR35 tax legislation.

In March this year, The PCG, which represents 14,000 independent mostly IT contractors, lost a High Court case which held the tax legislation was not illegal under European law. It would not say at the time whether it would take the case to the Court of Appeal.

It has now decided to do so. Chairman of the PCG Jane Akshar said: "Our members decided to fund an appeal against the High Court decision because we believe we have a good case and we want to fight for our right to run small businesses. These people are hard working businessmen and women whose businesses are being damaged and in some cases destroyed because of unfair treatment by the government."

In March, a High Court judge ruled that while the IR35 measure was flawed and the Inland Revenue's approach needed review, it was not against European law and so would stand as passed by Parliament. The PCG points enthusiastically however to the judge's agreement on nearly all "findings of fact" as presented by the PCG against IR35.

IR35 seeks to treat contractors on short-term contracts as employees of the company rather than independent workers. This has immediate tax implications and strongly affects the IT consultant market which is organised typically on a project-based basis.

The PCG was set up to support the contractors' cause and argues that the law demonstrates the government's lack of understanding of the modern work market. It went to the High Court on the legal point that by introducing the law, the UK government was effectively allowing unfair state aid and creating a barrier to free movement - illegal in European law.

No date has been given for the appeal yet, but a spokeswoman for the PCG told us it expected it to happen around November this year. ®

Related Stories

IR35 judicial review over
IR35: the govt's viewpoint
IR35 protesters enter High Court
IR35 High Court date set
CBI, FSB, PCG ask for rethink on IR35

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.