P35 Q6 End of year forms and accountants

**Alan @ BroomeAffinity** · 1 April 2008, 10:54

I'm still trying to sift through the legislation and information but the problem, as ever in UK law, comes down to definition. AFAIK, there is no statutory definition of "service company" nor is there one for "personal service company" which is what I think the Revenue are really driving at. Surely a service company is a company which supplies services. This could basically be any company that doesn't buy and sell commodities so I guess a lot of companies will be ticking the "YES" box. The supplementary question therefore will be answered by a lot of companies who don't have any knowledge of IR35 and will therefore be ticked "NO". My feeling is that if you do not consider IR35 to apply to your company you tick "NO". But I must confess I am not 100% confident on this as yet.

**Lewis** · 1 April 2008, 10:56

Originally posted by Just1morethen View Post

I'm still trying to sift through the legislation and information but the problem, as ever in UK law, comes down to definition. AFAIK, there is no statutory definition of "service company" nor is there one for "personal service company" which is what I think the Revenue are really driving at. Surely a service company is a company which supplies services. This could basically be any company that doesn't buy and sell commodities so I guess a lot of companies will be ticking the "YES" box. The supplementary question therefore will be answered by a lot of companies who don't have any knowledge of IR35 and will therefore be ticked "NO". My feeling is that if you do not consider IR35 to apply to your company you tick "NO". But I must confess I am not 100% confident on this as yet.

And who is submitting your form, you or your accountant?

**Alan @ BroomeAffinity** · 1 April 2008, 11:08

I am an accountant so I will be submitting my own. I've also got about 200 others to submit on behalf of clients which is why I have a vested interest in this. I have spoken to many colleagues and also had an off-the-record chat with a guy in HMRC and nobody knows exactly how to proceed although the general consensus is to what I said originally - and what your accountant is recommending.

**Lewis** · 1 April 2008, 12:25

Originally posted by Just1morethen View Post

I am an accountant so I will be submitting my own. I've also got about 200 others to submit on behalf of clients which is why I have a vested interest in this. I have spoken to many colleagues and also had an off-the-record chat with a guy in HMRC and nobody knows exactly how to proceed although the general consensus is to what I said originally - and what your accountant is recommending.

Goody good!

And do you ever show your clients what you have filed on their behalf? I'm a bit of a control freak when it comes to my company which is why I want to see in advance everything that is submitted on my behalf. As an accountant do you think this is unreasonable when it comes to online PAYE filing?

To explain further, I use the HMRC software to check my accountants PAYE and I keep my yellow PAYE booklet dispite my accountants wanting it - I have been burnt in the past by accountants making mistakes. Therefore I would like to approve the P35 and P14 before they are send to HMRC but they are just going to file it for me.

**Alan @ BroomeAffinity** · 1 April 2008, 12:32

We always get client approval before filing anything to the Revenue. To protect our own interests as much as the clients. Ultimately the client is responsible for the declaration and we are only submitting it on their behalf.

**philip@wellwoodhoyle** · 1 April 2008, 12:49

Likewise, we never submit anything without the client's express approval. In the past we have sent paper P35s to each client for signature, but this year we have emailed a PDF instead and only submit once the client has emailed back his agreement. If you want to see it before submission, then tell your accountant. They are acting for you, so you tell them what to do.

**Lewis** · 1 April 2008, 12:52

Originally posted by Just1morethen View Post

We always get client approval before filing anything to the Revenue. To protect our own interests as much as the clients. Ultimately the client is responsible for the declaration and we are only submitting it on their behalf.

Ok, have mailed accountants saying I want to approve content before they are sent off, although from what I was told this morning it is possible some have already been sent with the last pay run.

**Ardesco** · 1 April 2008, 13:15

No legal definition of a PSC so just tick No.

HTH

**Lewis** · 1 April 2008, 13:20

I've not had time to read the shout99 threads yet but on initial glance it seems 'No' might be the right answer. But I will await what my accountant recommends. They had initially said 'No' but they now say they want to do some further investigation.

[UPDATE] I have been advised by QDOS and AbbeyTax (PCG) to put Yes to service company and No to IR35. They think a service company does not mean Personal Service Company and neither thought this was a big deal. Obviously you need to seek your own advice to make you own decisions but I no think my comment above is not correct.

[UPDATE2] And my accoutants are in agreement with the Yes, No. And they are going to send me copies of forms in advance so all is good. :-)

P35 Q6 End of year forms and accountants