PCG concerned over tax ruling

Date: 29th January 2010

The Professional Contractors Group (PCG), an industry body for the freelancing sector has announced its displeasure at the ruling in High Court test case.

It follows the news that the Court ruled in favour of HM Revenue & Customs (HMRC) over IT contractor Robert Huitson, allowing the department claim tax retrospectively.

The PCG has now voiced its concerns saying the ruling could now lead to retrospective investigations of taxpayers by the HMRC

Chris Bryce, the organisation's chairman, said: "Whilst we recognise that the High Court Judge has clearly set out his reasons for upholding the 2008 Finance Act which allowed the Revenue to claim back this tax retrospectively in this particular instance … we share a common concern with all taxpayers that this judgement may be seen as opening the door to retrospection."

Mr Bryce added that while the PCG does not encourage off-shore tax practicing "in any way", the group strongly rejected the idea that taxpayers who had arranged their affairs in a legal manner could yet face investigation.