TaxPersonal TaxFunding could halt PCG progress

Funding could halt PCG progress

The Professional Contractors Group will go back to its members to decide whether or not to pursue its legal action against IR35 in the Court of Appeal.

Anti-IR35 campaigners pleasure at being granted the opportunity to fight again at the Appeal Court has been tempered by concerns over funding and a quandary over the timing. If it were to pursue the case, it would probably cost as much as its High Court battle in March. In this event, the PCG would need its members to bankroll the effort.

Moreover, the PCG case would be unlikely to come to the Appeal Court before November of this year. The group has now had its first meeting with the Inland Revenue to discuss the controversial legislation and hopes to meet again following the election.

But ultimately, a spokesperson said, it would be up to the PCG’s members whether or not they wished to continue.

‘Our options are open,’ said the spokesperson. ‘Any decision would be dependent upon our members.’

‘There are a number of issues to consider – one of which is funding,’ she said.

Lord Justice Burton ruled in April that IR35 could not be challenged on grounds of European law. The decision was a milestone in the Inland Revenue’s battle to keep the controversial rules, which were introduced to remove tax advantages previously held by contractors operating through personal services companies.

Although the group lost, it was hoped criticism from the judge would prompt the Revenue to alter the rules by which IR35 is governed. And in recent weeks, the government’s line on IR35 appears to have softened. Last week e-minister Patricia Hewitt was reported as saying the original proposals were ‘cumbersome’.

Links

Minister says IR35 was ‘cumbersome’

AccountancyAge.com IR35 resource centre

Related Articles

HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7d Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2w Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

2m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

4m Emma Smith, Managing Editor
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

3m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

3m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

3m Alia Shoaib, Reporter