IR35 is a perennial pain in the rear-end for the freelancers and contractors of the UK – not least because it is so opaque. We recently covered all the IR35 twists and turns in 2011, and now we bring you news of 2012′s first IR35 malfeasance.
For a long time a General Anti-Avoidance Rule (GAAR) has been touted as a preferable alternative to IR35. General Anti-Avoidance Rules are used in Canada and New Zealand, and form a set of principles rather than hard-and-fast laws. It’s introduction would allow fresh case law to be established around disguised employment and limited company contractors, and hopefully allow HMRC to avoid the mistakes of the past.
As you probably know, we’re throwing a big party in Brighton tonight to celebrate National Freelancers Day. If you didn’t know, you do now (and what have you been doing with yourself? Pay attention, for gods sake!).
Jon Norris | Lifestyle & Time out,News
This may take you by surprise a bit, given the massive popularity of smartphones amongst today’s savvy professionals. New research has found that smartphones are valued less by freelancers and contractors than social networks, online organisational tools such as Dropbox, and even coffee.
Prime Minister David Cameron has once again praised the UK’s freelancers on the eve of National Freelancers Day 2011. In the latest issue of Freelance Matters, the industry magazine from the PCG, the Prime Minister reflected on the impact on the freelance sector.
Worried about how your relationship might change with your agency now Agency Worker Regulations (AWR) has come into play? The PCG have compiled a set of letter templates for members to help maintain those agency relationships while providing assurance that that they are out of scope of the troublesome new legislation.
It’s no secret we love a good party. In fact, the only thing we love more than a good party is throwing a good party. Luckily for all those based in or around Brighton, we’re doing just that!
We’re in the midst of a fairly pronounced period of economic strife, in case you didn’t notice. Markets are collapsing, Greece is almost broke, and widespread redundancies are happening in the public and private sector alike.
The saga of IR35 is full of twists, turns, loop-the-loops and groin-kicks, and doesn’t show any sign of letting up soon, following George Osborne’s decision to take the path of least resistance in his 2011 Budget. Following a freedom of information request from the PCG, HMRC has divulged some interesting figures which shed some light on HMRC’s tremendous mis-management of IR35.
It has been reported that David Cameron has sought last minute legal advice to find out what the possibilities are of making changes to the new Agency Worker Regulations (AWR) that are set to come into force on the 1st October.
It is less than 8 weeks to go until National Freelancers Day, which takes place for the third year running on the 23rd November 2011, and if the promoters of the event are to be believed it is set to be the best one yet!
Last week marked the first meeting of the IR35 Forum, a carefully-selected group of freelancing, contracting and employment experts gathered by HMRC to aid their faltering IR35 reform attempts. Following the OTS report of small business tax reform and the Government’s subsequent inaction at the Budget, the forum was put together to look into better ways to administer the so-called “Freelancer’s tax”.
Following the OTS report on small business tax simplification and the Chancellor’s subsequent lack of action, HMRC has formed the IR35 Forum – an expert group of employment and tax specialists – to look into potential reforms to the much-reviled legislation. Following the Forum’s first meeting in early May, the Association of Professional Staffing Companies (APSCo) has now been invited to join.
This month Andy and Jon talk to Simon McVicar of the PCG about the latest developments on IR35, and how the PCG are attempting to advise the UK’s Government on future reforms. We also get an accountants perspective on how the changes brought about in the Budget will effect the nation’s freelancers from Steve Crouch of Crunch Accounting. This is a long one, so pour yourself a cup of tea.
IR35; what the hell is going on, apart from nothing? When an accountant first said to me “You don’t know what IR35 is?!” with a look of open mouthed incredulity, I knew right then and there it was going to be the sucky kind of litigious revelation that cost me money and possibly sanity.
As you may have heard, our Government is a little strapped for cash at the moment. Because of this, they have decided to introduce a raft of measures to increase their cashflow. One of the measures being employed by HMRC is the fairly innocuous sounding “Employer Compliance Visit”. Although it may sound like a friendly sit-down over a cup of tea, what it actually means is that HMRC will turn up on your doorstep to check your books.
After locking horns with the taxman for seven long years, freelance contractor Mark Fitzpatrick has has come out victorious in a significant IR35 ruling. And the key to his victory concerned a little concept called ‘mutuality of obligation.’
Fitzpatrick had been accused by HMRC of using his limited company, MBF Design Services, to avoid tax when working for aircraft manufacturer Airbus. In reaching a decision, the tribunal noted a lack of ‘Mutuality of Obligation’ as a significant factor.
Freelance trade body, the Professional Contractors Group (PCG), has warned of a tough year ahead in the labour market. However, managing director John Brazier, believes that the UKs contracting workforce is well placed to weather the storm.
As Billy Ocean once explained: “When the going gets tough…”
2010 has been a memorable year which has seen recognition of the freelance community rise to unprecented levels. A few things spring to mind. We’ve seen the forming of a coalition government which has seemingly set in motion a chain of events that will eventually see an overhaul of IR35. And the second ever National Freelancers Day was a huge success with freelancers across the UK going weak at the knees when Prime Minister David Cameron addressed them directly.
Now that National Freelancers Day has come and gone, and the dust has settled, we thought we’d provide a roundup of all the action from the day, in case any of you missed something. The day was a rousing success, we had a letter from the Prime Minister, the PCG held a packed lecture in London, and Freelance Advisor set a new traffic record!
A quick PSA for all freelancers, contractors and small businesses out there in the market for a new accountant – our friends at Crunch.co.uk are having a moment of weakness and getting into the spirit of National Freelancers Day by waiving all their set-up and Limited Company formation fees for the rest of the month.
Ok, so that second part might not be scientific fact (yet), but the first part is 100% true. The PCG have released the results of the poll they commissioned for National Freelancers Day (which is today – November 23rd – hooray!). The results make pretty pleasing reading for freelancers.
As you may have heard, today is National Freelancers Day – the day we celebrate freelancing in all its forms right across the country. Whether you’re an engineer from Edinburgh, a consultant from Cardiff or a locum from London – today is for you!
A new all-party parliamentary group has been set up for the freelance sector in order to create closer ties between Westminster and the UK’s 1.4m freelancers. The group will seek to highlight the contribution that freelancers and contractors make to the UK economy and promote the flexi-working way of life.
PCG, the industry trade body, certainly seems happy about it; but what powers does an all-party group have?
You’ll have to be quick to get your voice heard in a major survey of freelancers and contractors in the UK. It’s a good opportunity to offer your views on the state of freelancing, your hopes and fears for the future, and much more besides.
The survey should only take ten minutes and closes this Friday (5th November).
Jon Norris | Lifestyle & Time out
To everybody who attended the National Freelancers Day Mastermind Session in Brighton last night!
A special thanks to Tim and Iain from PCG for arranging the event, and to Crunch for providing the liquid refreshments.
Chancellor George Osbourne’s Spending Review marks the UK’s biggest spending cuts since World War II.
The cuts are set to change the country’s economic and social landscape, and freelancer’s trade body PCG has given their reaction…
National Freelancers Day may still be a few months away, but this year’s event already looks set to reflect the growing recognition of flexible-working as an increasingly important part of the UK’s economy.
Last year’s event was the first of its kind and was successful in further promoting the virtues of freelance working. But the PCG has already got some heavyweight backing for the event when it returns on November 23…
A new interactive guide has been produced by the PCG which offers information and advice on how clients can source freelancers and make the most of their talents. The guide works as a handy reference tool which will ultimately help potential employers better understand freelancers and contractors, and ensure a smoother working relationship.
But it’s also pretty darn useful from a freelancer’s perspective…
Freelancers and Contractors unhappy with the Labour government’s IR35 leglislation may now be able to see light at the end of the taxation tunnel.
Before the election the Tory team were hinting that they’d “review” IR35 if they got into power, but yesterday saw the first strong commitment from small business minister Mark Prisk.
“We want to make sure that we could undertake a comprehensive review of small business taxation in a way that makes the need for the current IR35 legislation redundant” said Prisk in an interview with The Telegraph.
Chancellor George Osborne delivers his Emergency Budget on the 22nd June. But what will it mean for freelancers? Join the PCG for comprehensive and insightful analysis. What will the red box contain this time for freelancers, in an era of austerity and cuts?
PCG will be providing live coverage at http://twitter.com/insidepcg from noon.
In our continuing quest to offer a helping hand to freelancers and contractors, we’re offering you the chance to get a special discount on membership to the PCG (the Professional Contractors Group) thanks to an exclusive promotional code.
Following an unprecedented period of political uncertainty after the election of the first hung parliament for decades, PCG (the professional association supporting freelancers, contractors and consultants) have welcomed the fact that the Conservatives and Liberal Democrats were able to put together a coalition to tackle the current economic crisis.
PCG believe that the members of the new Government will work together to address the issues faced by freelancers. In particular they will continue to encourage both parties to pursue the abolition or full review of the unfair IR35 tax, which hinders the ability of freelance workers to contribute to the UK’s economic recovery.
With the General Election fast approaching, prospective parliamentary candidates will be out and about, doggedly canvassing on the streets in your neighbourhood.
The Professional Contractor’s Group (PCG) has produced a Guide to possible questions you can ask your candidate should they appear on your doorstep, with useful background information on some of the main issues facing freelancers.
The PCG’s John Brazier and Brookson’s Martin Hesketh respond to Alistair Darling’s budget.
How will the changes affect you and your business?
A national advertising campaign highlighting Britain’s Brain Gain has been launched, spotlighting the rich talent pool amongst the UK’s 1.4 million freelance workers and highlighting their £82 billion contribution to our economic output.
The newspaper campaign and the Britain’s Brain Gain website reflects on the ability, imagination and effectiveness of freelance workers throughout the UK.
As electioneering and policy pledges seem to have started in earnest the PCG, the representative body for freelancers, contractors and consultants in the UK, is marking the New Year by calling on Government and policy framers to take a fresh approach to freelancing at the start of a new decade.
Download the Freelancers Manifesto
The PCG is a non-profit organisation that fights the freelance corner by lobbying government for better tax and regulation and promoting fair and ethical behaviour among recruiters. It also provides a host of tools and knowledge to its members to help them handle tax and regulatory matters properly.
PCG insider Charlie Bradburn tells us why they could be your greatest ally if you were ever to suffer a tax investigation and how their help-line can help you feel more at ease when confronted by a letter from the HMRC.
The Professional Contractors Group (PCG), which represents UK freelancers and contractors, has warned the Government against “heavy-handed action” which would remove tax relief on expenses. The warning particularly concerns freelancers who work through ‘umbrella companies’ which oversee the offering of a number of freelancers’ services on large or long-term contracts. “PCG supports the presence of [...]
