The PCG (formerly known as the Professional Contractors Group) has notched up another victory against HMRC in its relentless fight against the misapplication of IR35 rules to legitimate contractors working through their own limited companies.
Phil Winfield, the Director of Primary Path Ltd and a member of PCG, emerged triumphant after the first tier tax tribunal he attended ruled that he had been working as an independent and self-employed contractor for the company GSK, not as an employee, as HMRC contended. He had endured eight years of uncertainty following HMRC’s decision to investigate him in 2003.
In response to the ruling, PCG’s Director, John Brazier, said, “We are still fighting IR35 on all fronts to defend our members….Frankly, clarity for Phil was long overdue, but we are delighted he can finally get on with developing his genuine freelance business”.
Mr Winfield spoke of the effects of the investigation after the tribunal’s ruling. It had led to considerable emotional and financial strain, he said, with the shadow of stigma hanging over him and his business over many years. Had he not received help from Accountax Consulting through his membership of PCG, he would have faced costs exceeding £50,000, largely because the investigation took so long. “In today’s age of accountability, the amount of time HMRC took to argue their case means that the figure this has cost the taxpayer must be enormous, when compared with the amount they were fighting for,” he added.
Winfield’s victory is the third one chalked up by PCG and Accountax in recent months.