Self assessment - "service company" income

[Lewis]

ICAEW advised No/No unless you were IR35 or umbrella, managed service co. (This is partly why I went No/No in the end.)

http://www.icaew.com/index.cfm?route=157095

This is an old link before "clarification". There is new advice on there now.
http://www.icaew.com/index.cfm?route=157373

[moorfield]

Just goes to show, no one really has a scooby do they?

Flipping HMRC muppets.

[Lewis]

Just goes to show, no one really has a scooby do they?

Flipping HMRC muppets.

Exactly ... even the HMRC clarification is vague!

[Lewis]

I just found this on ICAEW web site ... http://www.icaew.com/index.cfm?route=157536

We have had a number of enquiries from members concerning the service companies question on page TR4 of the 2008 SA tax return. We had an indication 2 years ago that a question of this type was going to be added to the Tax Return, but unfortunately no subsequent consultation on either its precise purpose nor the wording.

The question is similar to that which has appeared on this year’s Form P35 and on which we gave advice earlier in April, except that in addition the taxpayer is required to quantify the ‘Total amount of any income included anywhere on this Tax Return, derived from the provision of your services through a service company.’

We have a number of concerns about this and have written a joint letter, together with the Chartered Institute of Tax, to HMRC.

We will publish further guidance about how to complete this question when we have received further clarification from HMRC.

2 May 2008

No updates as yet ....

[THEPUMA]

As per my previous post on this subject, I am going to advise my clients to ignore the question on the self-assessment form on the basis that it is illegal and/or ambiguous and therefore they have no obligation to answer it.

[QwertyBerty]

As an aside, with PCG standard you will have nobody to help you in the event of an aspect enquiry which is where IR35 investigations usually come from.

From PCG FAQ:

"For any enquiries starting after January 1st 2007, the PEI will also include Income Tax Aspect Enquiry Cover with an excess of £150 and an Upper Limit of Indemnity of £1,500 – this is new cover."

[Lewis]

From PCG FAQ:

"For any enquiries starting after January 1st 2007, the PEI will also include Income Tax Aspect Enquiry Cover with an excess of £150 and an Upper Limit of Indemnity of £1,500 – this is new cover."

Ok I hadn't realised that, that's good to know. So it is just PAYE audits that aren't covered in the standard membership. Interestingly I read this recently ... http://forums.contractoruk.com/accou...vs-qdos-4.html

I am a member of the PCG... I do know what questions to ask - been a contractor for over 10yrs now and v.clued up on IR35, S660, etc. I appreciate that I should of bought the PCG Plus cover, but I did expect to get better help from the PCG rather than the responses I have had ... which are basically, you're not a member of PCG Plus therefore we can't help you with anything until IR deem you are caught - then come back to us and your insurance will kick in for representation.

I'm QDOS all the way