P35 Q6 End of year forms and accountants

[kingshuk]

I run a Limited company - I am the only employee and operating outside IR35.

My accountant (NW) says they will say -

Are you a service company ? Yes
Have you operated the intermediaries legislation..? 'No'

Will speak to them again about why they say 'Yes' to the first question.
Hoping to get something definitive from PCG soon, before jumping the gun.

[Lewis]

I run a Limited company - I am the only employee and operating outside IR35.

My accountant (NW) says they will say -

Are you a service company ? Yes
Have you operated the intermediaries legislation..? 'No'

Will speak to them again about why they say 'Yes' to the first question.
Hoping to get something definitive from PCG soon, before jumping the gun.

I updated my previous post yesterday. PCG and QDOS agree with Yes No.

[THEPUMA]

The guidance says that a Service Company is any business "through which the personal services of one or more persons are provided to end clients".

Given the use of the word "personal", I believe that if the company has an unfettered right of substitution, it needn't tick yes.

If that were not the case, the logical conclusion is that virtually every company is a service company. Note it doesn't say that exclusively personal services are provided. So even a manufacturer of widgets provides some element of personal service.

I've emailed David Smith of Accountax on the matter, who agreed with my stance.

[Pickle2]

I updated my previous post yesterday. PCG and QDOS agree with Yes No.

Linkys?


Seems odd to answer "yes" then "no". Why would you not apply the services company legislation if you are in fact a services company?

[Lewis]

Linkys?

Seems odd to answer "yes" then "no". Why would you not apply the services company legislation if you are in fact a services company?

I pay for their tax helplines. This was verbally told to me. They both think this is a storm in a tea cup. They think a 'service company' simply means a company that provides services (not personal service company). Usual disclaimers apply!

[FarmerPalmer]

Do you get to see your completed P35/P14/P11s etc. before you accountant submits them online?

There seems to be a big debate about what to answer to question 6 on the p35 "Are you a service company?" http://www.accountingweb.co.uk/cgi-b...%20%25B%20%25Y

I phoned my accountant to see what they recommended. They recommend answering Yes if you are IR35 caught and No if not. I have yet to read all the information to make my own decision but I agree with them at the moment.

However, I am concerned that I don't get to see the P35/P14/P11s before they are submitted and in fact I am not send a copy of what was submitted so basically I don't/won't know what has gone to HMRC.

Is this standard, I find it very unnerving.

I did mine yesterday - and put NO.

[Ruprect]

I did mine yesterday - and put NO.

Blimey, that's efficient.

[Chugnut]

Linkys?


Seems odd to answer "yes" then "no". Why would you not apply the services company legislation if you are in fact a services company?

Doesn't "apply it" mean that you think you are inside it? If you think you're a services company but your working practices place you outside IR35 you tick the No I guess.

However, maybe not. There's an argument for Yes for the second question. I've applied it and decided it doesn't apply to me, for instance. It is so open to interpretation!

Interestingly, QDOS advise the Yes/No response but you won't invalidate your insurance if you tick No to the "Are you a Service Company" question according to a member of their staff who posted on Shout99.

[malvolio]

The PCG advice is not definitive (if you think about it, they can't really give definitive advice since the actual question is unclear) but it is the advice given by their own professional advisers.

There are divergent opinions on the first answer but from what I understand answering Yes or No to Q1 makes little practical difference anyway; even if it is a crude attempt to get a list of all IR35 candidates, that data is already available elsewhere and they are simply looking to save time and effort collating it. What is clear IMHO is that you should answer No to Q2 unless you are convinced you are inside IR35.

[xoggoth]

Yeeeeeh. Being retired from contracting I shall enjoy ticking no and putting 0.00 in every box.