In a bid to help its members avoid the IR35 trap, the Professional Contractors Group (PCG) has teamed up with the Association of Technology Staffing Companies (ATSCo) to draw up a standard contract for IT industry freelancers.
IR35 is a rule introduced in the March 1999 budget which makes individual contractors working for a single client for long periods liable for income tax as if they were employees. The PCG was formed in May 1999 specifically to fight IR35 and provide support for freelancers caught by the ruling.
"We are delighted to have reached agreement with ATSCo on the terms of a standard contract," Ian Durrant commented in an Out-law.com report this week.
"This shows our willingness to work together and demonstrates the increase in understanding that has been achieved between the two groups. Since agencies and contractors 'share the same rice bowl', this has to be a positive step for all parties concerned. We sincerely hope ATSCo members take up the option of using this contract with their PCG member contractors," he announced.
The first of the contracts was signed this week by a freelancer working through the Wreay group, an affiliate member of the PCG.
According to the PCG, the new contract has been described by legal experts as "a robust defence against IR35”.
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