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All Is Not Lost For Freelancers After IR35 Ruling Says PCG

by Jason Gorringe, Tax-News.com, London

04 April 2003

The recent judgment against freelance contractor Gordon Stutchbury concerning IR35 rules was something of a setback for the UK's freelance community. However the Professional Contractors Group (PCG) argues there are some positives which can be derived from the case, and that there are some vital lessons to be learned in the fight against the Inland Revenue over this issue.

The PCG offers two basic pieces of advice to people in Gordon Stutchbury's position when it comes to IR35. Firstly, they should not invite investigation by the revenue by voluntarily submitting their contracts to the tax man. Secondly, they should avoid ticking the P35 box referring to personal service company legislation, thus declaring themselves IR35 caught.

The PGC also announced that it does not recommend freelancers follow Stutchbury's lead and represent themselves at the General Council. The body claims that the ex-policeman would have been in a much better position had he quickly sought professional and independent representation.

Speaking this week, Deputy Chairman of the PCG, Simon Griffiths stressed the benefits of the latter course of action: "Gordon may have lost his case but freelancers represented by the PCG are winning their cases, almost without exception,” he explained.

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