PCG Gets New IR35 Judicial Review Appeal

by Jason Gorringe, Tax-News.com, London

08 October 2001

The Professional Contractors' Group (PCG) is set to appear in the UK Court of Appeal on 19 and 20 November this year to again argue that IR35 is not recognised by European law because it is an unfair state aid and obstructs free movement of persons.

The court case follows the High Court dismissal of PCG's claims in April, although at the time Mr Justice Burton condemned the Inland Revenue over its Employment Status determination details in its staff guidance manual. Although the PCG was not granted leave to appeal, its members raised the funds among themselves to issue a direct application to the Court of Appeal.

It is estimated that legal action since April has cost the PCG around £800,000 although this is currently unconfirmed.

A PCG spokesman said: 'We have felt, and have been advised by lawyers, that we have a good case. We felt that in the High Court we won all of the points of fact. We're appealing because, having won on all the points of fact, we would take it one step further.'

Jane Akshar, Chairman of the PCG, has explained: '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.'

She added: 'IR35 treats these entrepreneurs as if they are employees for tax and NI purposes and therefore prevents them from competing on a level playing field with their larger competitors. It is ironic that our members have to fund a legal action against a Government which professes to support small businesses to protect our right to run a small business.'

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