PCG Newsletter @ 11 April 2005

IN THIS ISSUE

• PCG publishes new Guide to IR35

• Arctic S660 seminar - May/June 2005

• PCG seeks election candidates' views

• Policy update

• PCG elections

• PCG supports small business manifesto survey

• Preferential banking deal from Barclays

• Rate relief for small businesses from 1 April 2005

• Childcare vouchers

• Aristotle collapse

• Contract opportunities for members

• Regional meetings

• Advertisement

PCG PUBLISHES NEW GUIDE TO IR35
PCG has just published its updated Guide to IR35. Announcing the publication, chairman Simon Juden said, "This important revision of our Guide to IR35 reflects several points of clarification that we have achieved through our legal work over the past year. It also addresses recent changes to Inland Revenue practice - the growing tendency to approach end clients for information about work practices in order to assess a contractor's employment status from an IR35 perspective. "An important addition to the Guide is an appendix containing sample 'real arrangements' letters, which are an effective way of making available the relevant information about the real working arrangements to all parties without damaging the commercial interests of the freelancer," he said. "In many cases, the Revenue inspector will refer to these instead of approaching the end client. We've also included an explanatory note to the end client, outlining the purpose of the 'real arrangements' letter and the merits of having one in place to complement the formal contract."This publication is the most comprehensive and up-to-date source of information and advice about IR35 for freelance contractors," said Simon, "and I'm pleased that our members will be able to benefit from our case law experience and the knowledge of our expert advisers." The new Guide to IR35 is available to PCG members as a download from the website.

ARCTIC S660 SEMINAR - MAY/JUNE 2005
PCG plans to host a seminar in central London about the Arctic S660A case, for members, freelancers and PCG friends. The seminar date will be announced once the judgment has been handed down, and the main speaker at the seminar will be David Smith LLB FTII, founding director of Accountax Consulting and former Inland Revenue inspector.There will be a charge of just £50 plus VAT for PCG members and £75 plus VAT for non-members. If you would like to attend, in principle, please register your interest online. Places will be allocated on a first-come, first-served basis, and PCG will contact you to confirm your booking and request payment once the date has been announced.

PCG SEEKS ELECTION CANDIDATES' VIEWS
In the wake of Tuesday's announcement that the general election will be held, as widely expected, on 5 May 2005, PCG has asked all candidates from all the major parties in every constituency for their positions on a range of policies formulated after an independent survey of its members. Their responses will be posted on the PCG website over the course of the campaign. Launching the initiative, PCG chairman Simon Juden said, "PCG is the heart of the freelance community, and this exercise will keep our members and the wider community informed on candidates' views, as well as showing up whose support we can rely on going forward."

POLICY UPDATE
As part of the Budget, the Treasury has launched a consultation for small businesses on the new department of HM Revenue and Customs (HMRC). This focuses on the relationship between HMRC and small businesses, and what small businesses would like to see. PCG's political researcher, John Kell, will be drawing up a response to the consultation, and welcomes feedback from members, particularly regarding the questions posed on pages 21 and 22.Likewise, members are invited to submit their comments about the long-awaited consultation on the powers of HMRC.Another consultation announced on Budget day is a reform of Company Law. Proposals include restructuring those parts of company law most relevant to small businesses making it easier for them to understand what they need to do; simpler rules for forming a company; and abolition of the need for a company secretary. John Kell will be drafting PCG's response, and welcomes feedback from members about the proposals.

PCG ELECTIONS
PCG's annual elections for the Consultative Council (CC) will be conducted between 13 April and 11 May 2005. Paper ballot forms are to be sent to members with a short election statement from each candidate. The timetable will be as follows:

• Wednesday 13 April 2005 - nominations open

• Wednesday 20 April 2005 - nominations close

• Saturday 30 April 2005 - all members in the UK should have received ballot papers and reply paid envelope

• Tuesday 10 May 2005 - ballots close at noon

• Wednesday 11 May 2005 - results announced at noon

• Saturday 21 May 2005 - first CC meeting

The CC comprises 30 members, half of whom are elected each year. The CC has a number of roles, first of which is to serve as an electoral college, appointing the board of directors. It holds several meetings a year, typically between four and six, at which the board reports on its activities, answers questions and receives representations from members. The CC has the constitutional powers to appoint a board of directors each year, to veto any additional appointments to the board, to call an extraordinary general meeting, to be informed of the grounds of any expulsion from PCG and to run its own affairs. CC members are also involved in other activities, such as forum moderation, disciplinary committees and various working groups, and have an important and valuable role to play in running the only not-for-profit trade association representing the freelance community in the UK.

PCG SUPPORTS SMALL BUSINESS MANIFESTO SURVEY
PCG is encouraging its members and other freelance consultants, contractors and small business owners to participate in an independent survey commissioned by the Genesis Initiative. As a Genesis member, PCG participated in defining the survey questions. Genesis and market research company YouGov will present the research findings in the Houses of Parliament. The survey is available online.

PREFERENTIAL BANKING DEAL FROM BARCLAYS
Following the online survey to which over 500 members responded, PCG has negotiated an exclusive package with Barclays Bank to deliver a full banking offer designed specifically to meet the needs of freelancers. The package aims to satisfy the key requirements identified by survey respondents as being the most important to them by:

• Recognising and rewarding members' worth with a preferential savings rate

• Minimising the cost of their day-to-day banking

• Providing them with online management of their finances

• Maximising efficiency and convenience of their banking

Full details of the package and an online application will be published on PCG's website within the next few days.

RATE RELIEF FOR SMALL BUSINESSES FROM 1 APRIL 2005
The Small Business Rate Relief came into effect on 1 April 2005. Eligible businesses with rateable values of below £5,000 will get 50% rate relief on their liability. This relief will decrease on a sliding scale of 1% for every £100 of rateable value over £5,000, up to £9,999. Further information is available on the official website and members should contact their local authorities to apply for relief.

CHILDCARE VOUCHERS
From 5 April 2005, employers will be able to provide their employees with childcare vouchers up to a value of £50 per week, free of tax and National Insurance contributions. This is effectively a salary sacrifice scheme whereby the employer deducts an agreed amount from the employee's salary, passes it to an appropriate voucher provider company which then issues vouchers either direct to the employee or to the employer to be passed back to the employee. The childcare must be provided by a registered provider and the scheme must be made available to all employees.Full guidance is available on the Inland Revenue website.

ARISTOTLE COLLAPSE
Recruitment agency Aristotle Corporation has been issued with a winding up order by a PCG member who, like many others, had not received payment for invoices dating back to December 2004. The petition will be heard at the High Court in Birmingham on 20 June 2005. Members can read the relevant threads in the Affiliates and Client/Agency Matters forums for lates news, discussions and informal advice.The collapse of yet another agency highlights the risks facing contractor businesses and counters the assertion that contractors are "disguised employees". PCG members affected by the collapse may draw comfort from seeking mutual support and assistance via the forums; this is not a substitute, however, for taking professional legal advice.

CONTRACT OPPORTUNITIES FOR MEMBERS
For information about the latest job, project, contract and work opportunities, see PCG's Commercial forum, and Members' Commercial forum. The Commercial forum may be accessed by Affiliate members, and PCG welcomes postings by agencies. If you are willing to have your commercial post published in the weekly newsletter, please include the words "newsletter OK".

Current opportunities include:

• Master scheduler/production planner

• Java Server Faces/JSP developer - London

• Freelance recruitment opportunities

REGIONAL MEETINGS
Regional meetings - traditionally known on the forums as "RLMs" - encourage members to socialise, network and discuss PCG issues. These meetings are open to all members, and in many cases non-members are welcome to come along too.

Sheffield - Thursday 14 April 2005 19:30The Old Queen's Head, by the bus station. Email enquiries to sheffield@pcg.org.uk
Norwich - Thursday 14 April 2005 19:30Email enquiries to eastanglia@pcg.org.uk
Edinburgh - Thursday 21 April 2005 19:30Scotch Malt Whisky Society at 28 Queen Street, Edinburgh. Registration required in advance. Email enquiries to edinburgh@pcg.org.uk
Farnborough - Tuesday 28 April 2005 19:00

Prince of Wales, Farnborough. Email enquiries to farnborough@pcg.org.ukVarious members have also posted in the RLM forum about potential meetings in other areas. If you would like to attend regional meetings in any of these locations, please register your interest by posting to the relevant thread.

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