Article on AccountingWeb this morning may be of interest:
https://www.accountingweb.co.uk/tax/...in-three-areas
- exact hours worked by each employee
- who operates through their own company, and what dividends they receive from that company
- when self-employed traders start and finish their businesses.
https://www.accountingweb.co.uk/tax/...in-three-areas
- exact hours worked by each employee
- who operates through their own company, and what dividends they receive from that company
- when self-employed traders start and finish their businesses.
HMRC has not been clear about why it needs a breakdown of dividend income between that generated from the taxpayer’s own company and dividends from other sources. As it also wants the taxpayer to report what percentage of the company’s shares the individual owns, leads me to assume that this data grab is designed to target personal service companies which may not be applying the IR35 rules correctly.
HMRC has confirmed that only directors of close companies will be required to provide this dividend breakdown and shareholding data, but that still leaves these outstanding questions:
HMRC has confirmed that only directors of close companies will be required to provide this dividend breakdown and shareholding data, but that still leaves these outstanding questions:
- Why is this information needed by HMRC?
- How will the regulations define ‘owner-managed business’?
- What will the taxpayer have to provide in terms of the percentage of shareholding?
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