Quote:
|
Originally Posted by simonsjdaccountancy
Bradley - Form 42. See what you mean. It could well be that the Revenue are sitting on these and formulating a strategy for taking down the composites, but I think it fair to say that they have a very limited shelf life the way things are going.
|
I went on a course just last week when this very point was covered, but the speaker warned everyone that this new legislation may not be limited just to composites, but also to S660 and IR35 cases, which really made people sit up and listen. He thought that the HMRC may have put the legislation in place "just in case" they lost the S660 case, the logic being that if they won, they could go back the six years for S660, but if they lost they can at least go back to 2004 and activate the legislation as a "catch all" for anyone paying dividends instead of wages. His opinion does tend to make sense as the HMRC are losing most of the IR35 cases and with S660 as well, one has to wonder why they havn't brought in new legislation to prevent the low salary/high dividend scenario - perhaps they have brought in the legislation and are just sitting on it!