IR35 battle set to run and run

Anti-IR35 campaigners this week vowed to fight on after it emerged that the Professional Contractors Group (PCG) has asked for permission to appeal against its High Court defeat.

Although the PCG was initially refused leave to appeal, it has now asked for permission to take its case to the Court of Appeal. The campaign group hopes it will know within four weeks whether or not it can take its case further.

At the beginning of April, Lord Justice Burton ruled that IR35 could not be challenged on the grounds of European law. The decision was a milestone in the Inland Revenue's battle to keep the controversial tax rules, which were introduced to remove tax advantages previously held by contractors who operated through personal service companies.

If the PCG is allowed to lodge an appeal, its arguments would be along broadly the same lines as before. The group can only challenge on European grounds as the Government retains the right to set tax policy and legislation in the UK.

Only the European Union has the authority to rule that the tax law should be changed. Meanwhile, representatives of the PCG hope that they will get their chance to meet officials from the Revenue in "weeks rather than months".

A spokesperson said that while a date has yet to be set, PCG directors and chairman Jane Akshar were looking forward to the opportunity to hold a discussion with the Revenue.

It is understood that the meeting will not include MPs or senior members of the Government, but will instead be with Revenue officials. The PCG hopes to discuss the notorious set of tests devised by the Government to determine eligibility under IR35.

Also published on accountancyage.com