PCG lobbies directly for “serious reform” to the work permits system
PCG is calling for “serious reform” of the immigration system, particularly with regard to the use of ‘intra company transfer’ (ICT) work permits. It has done so in response to a review being conducted by the Migration Advisory Committee (MAC), the body which makes recommendations to Government on immigration policy.
PCG asserts such ‘ICT’ permits are displacing UK contractors, and it has been making a strong case for reform through numerous meetings with the MAC. PCG Managing Director, John Brazier, stated “We have been calling for such a review for some time, and our long history of involvement and action on work permit reform has no doubt contributed to the instigation of this exercise.”
Read more...PCG exposes the truth of IR35's pitiful tax take
PCG is for the first time able to reveal the exact amount the restrictive IR35 tax regulation rakes in for the Government.
Following a request under the Freedom of Information Act to HMRC, asking just how much tax revenue IR35 raises for the exchequer, PCG can divulge that between tax years 2002/03 and 2007/08, IR35 directly raised just £9.2 million. This equates to an average of around only £1.5 million per tax year – a tiny sum in Governmental terms. The initial regulatory impact assessment for IR35 in 1999 stated that HMRC expected the measure to generate £220 million per year in National Insurance contributions alone, thus demonstrating IR35 has not lived up to the Government’s expectations.
Read more...PCG analysis: Budget 2009 offers nothing for freelancers
In PCG’s tenth anniversary year, we are reminded that Budget Day often brings momentous announcements for freelancers, seldom for the better: in 1999 it was IR35; in 2003 it was IR591 (neutered in 2004 after PCG lobbying); in 2006 it was the Managed Service Company rules (whose implementation in 2007 avoided the worst, again after lobbying by PCG); and in 2008 the Family Business Tax proposals were deferred after widespread criticism.
In 2009 the Budget did not address freelancers directly; rather, its main focus was on the economic crisis currently gripping the UK. Nonetheless there were some inclusions – and omissions – of significance.
Service company questions on the P35 and tax return
The topic of the service company questions that were introduced on the 2007-08 P35 and self assessment returns continues to a be a hot topic (issues of possible legality of these questions aside).
HMRC did acknowledge last year that their initial guidance had been inadequate and that the information on any 2007-08 returns submitted prior to their revised guidance being issued (in September 2008) would not be used to select businesses for IR35 enquiries.
There are no such guarantees for any 2008-09 returns so it is important for freelancers to take advice on their position (especially as penalties can now be applied where an individual has been negligent by not taking advice).
Read more...Let’s hear it for the MAC
The Migration Advisory Committee (MAC), the body which advises Government on its immigration policy, has just begun sifting through the no doubt hundreds of responses it will have received to its “Call for Evidence”. This exercise asked whether and how the immigration system should be tightened, and what economic evidence exists for such a move.
Clearly, this is an important issue that concerns many IT contractors, who rightly feel angered by revelations such as those made in a recent edition of “File on 4” on Radio 4, a program to which we contributed many facts and figures. Reports from our members allege that BT may be massively exploiting a loophole in the immigration system – the “Intra Company Transfer Visa” (ICT). According to these reports, this allows BT to replace hundreds of contractors with “onshored” IT staff at lower cost. Rules within the ICT system are meant to prevent such visas from being used to displace UK workers, yet, unfortunately, this is not what seems to be happening. This is against the spirit of these rules and is undermining the UK contractor market in a recession.
A mere ripple in a duck pond...
Two weeks in anyone’s life is not long, but for MPs it must seem like an eternity. Recent events have even got me wondering whether I have ever claimed anything I shouldn’t…you know, the odd bag of crisps and newspaper buried in a business petrol receipt, or that claim for the Hot Air Balloon flight so as to do some ‘blue sky thinking’ [sorry Gov!…genuine mistake.] Also reminds me of the chap who claimed for a dinner suit and was caught with his trousers down over it. He then told his boss he would resubmit his expenses next week and upon submission, challenged him to find where he had hidden the suit claim.
Starting up as a Freelancer?
This week’s unemployment figures show another 244,000 finding themselves without regular work. In this environment, more and more people will start considering “the third way”. If you are thinking of joining the 1.4 million freelancers in the UK it is not an easy option, but can lead to a fulfilling and exciting career.
If you are interested in setting up as a freelancer, the first thing to consider is what you’re selling – look at your experience and CV and draw out your core competencies and sellable skills (define your product). Cross reference these with relevant job boards and websites. Is there a market for you?
New Board for PCG
We are delighted to announce two new members of our Board who were elected from our Consultative Council on Saturday. The Board of Directors is now made up of 2 appointed Directors and 6 PCG members (full details on www.pcg.org.uk) who work with the staff to support the ever growing membership. The PCG is developing rapidly as an organisation and our two new board members bring a wealth of experience in terms of project management skills and, particularly in the case of Geoff Jones, dealing effectively with HMRC.
Two-thirds of male workers 'exceeding 48-hour working week'
Two thirds of male freelance consultants, contractors and other workers are exceeding the 48-hour week, according to a new study.Research by BT Business found 37 per cent are putting in extra shifts to covering a growing number of daily tasks. Read more...
Freelancing 'can keep skills sharp'
Setting up as a freelance consultant or contractor can help keep a person's skills sharp, according to a commentator.Vice-president at Makovsky and Company, Steve Seeman, told PR Newsweek choosing to work in this manner could be a way of continuing to earn money during the recession. Read more...
Female workers 'need to dripfeed a pension'
Female freelance consultants, contractors and other workers have been urged to start saving for a pension "as soon as possible".Putting away cash every month has been recommended by Ruth Whitehead, the director of a financial advisory firm. Read more...
CV expertise offered to freelancers
Expertise in how to compile an effective CV has been offered to freelance consultants and contractors by a commentator.Writing for Sitepoint, Alyssa Gregory noted it can be "tricky" to get the right message across on this type of document. Read more...
