P35 Question 6

[ittony]

I've just noticed how different this section is on the Employers' CD-ROM. The question (there's only one) and associated notes are pretty clear that a 'yes' would imply IR35-caught.

How this single question can possibly map onto the the paper form's two, I do not know. I can only imagine it's supposed to be the equivalent of the second question, and the first doesn't get answered. But where does that leave me with the Self Assessment, doesn't the similar question on there have to match with the first of the paper P35 pair...?

[THEPUMA]

But where does that leave me with the Self Assessment, doesn't the similar question on there have to match with the first of the paper P35 pair...?

The wording of the question on the self-assessment form is "Total amount of any income included anywhere on this Tax Return, derived from the provision of your services through a service company - read page TRG 15 of the guide".

The relevant guidance says "You should complete this box if you have received any form of income (including employment income and dividends) during the year in question from a company through which you provided your services personally and of which you are a sole or joint shareholder.".

As I've said previously, my advice will be to report NIL income in there.

[RockyBalboa]

The wording of the question on the self-assessment form is "Total amount of any income included anywhere on this Tax Return, derived from the provision of your services through a service company - read page TRG 15 of the guide".

The relevant guidance says "You should complete this box if you have received any form of income (including employment income and dividends) during the year in question from a company through which you provided your services personally and of which you are a sole or joint shareholder.".

As I've said previously, my advice will be to report NIL income in there.

So where then do you report your income from paye/dividends from your LTD?

[THEPUMA]

So where then do you report your income from paye/dividends from your LTD?

They are reported in the usual places. The question asks you to duplicate this information so you put your salary and dividends in the boxes for salary and dividends and then the same figures again (aggregated) in the box re service companies.

[Jog On]

I'm answering 'no' 'no' as advised by my accountant.

This is because I'm outsourcing a software program that I want to sell over the net (still in development).

Accountant is also going to see if we can go for some R&D tax relief over it as well

[RockyBalboa]

They are reported in the usual places. The question asks you to duplicate this information so you put your salary and dividends in the boxes for salary and dividends and then the same figures again (aggregated) in the box re service companies.

So Dividends would go in Income question 3 but what about paye income? Sorry, this will be my first return.

[Hex]

PAYE income goes in the Employment Supplementary Pages:

http://www.hmrc.gov.uk/forms/sa102.pdf

[moorfield]

Bump...

[Sausage Surprise]

Accountant suggested Yes/No. I told them No/No!

[expat]

Don't get too excited. The second part of their explanation for the first question is to answer yes if the limited company, limited liability partnership or general partnership’s (the service company) business consists wholly or mainly of providing the services of individuals to clients

Well I could be wrong, but isn't that EDS? Or Accenture? Or Reed Group? Or the company that cleans my windows?

I don't think that clarifies anything at all, really...

No, No, No, and probably No. Services, yes. Of individuals, theoretically no.