UK Contractors Legally Challenge IR35; Inland Revenue to Respond by December

SPECIAL REPORT

LONDON--The British government lost a court battle last week against the Professional Contractors Group (PCG) concerning the controversial IR35 legislation.

Gerald Barling of the Queen's Counsel, attorney for the group, successfully argued that the group's request for a judicial review of IR35 should be permitted as the act contravened European legislation and should therefore be struck down.

In summary, the group claims that IR35 is illegal state aid, as the government is taxing small

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