SA Tax return

[Moscow Mule]

Correct me if I am wrong but presumably they said you were a service company on the P35 (it seems a lot of accountants did this) so now they have no choice but to continue down that path and fill in the box on the return. Whereas a lot of us answered no to the service company question on the P35 following advice at the time by ICAEW.

Not really the case - the wording in the guidance is very specific on what constitutes a "Service Company" so (mostly) if you're a Ltd, you should fill it in.

[rawly]

On another note regarding the 'service company' figure. Going by the final calculation done online, it breaks down the "Income" bit at the end. The PAYE total is straightforward, but I did ponder over the Dividend bit. As HMRC added the 10% Tax Credit on, and deemed this as 'income' (even though it it cancelled out again later), in my Box for income derived from service company I did it on <PAYE>+<DIVIDEND>+<10% CREDIT ON DIVIDEND>.

Wasn't too sure about this, but I think I did it correctly! Anyway, at least you can edit the online Form now within 12 Months of submission.

[QwertyBerty]

On another note regarding the 'service company' figure. Going by the final calculation done online, it breaks down the "Income" bit at the end. The PAYE total is straightforward, but I did ponder over the Dividend bit. As HMRC added the 10% Tax Credit on, and deemed this as 'income' (even though it it cancelled out again later), in my Box for income derived from service company I did it on <PAYE>+<DIVIDEND>+<10% CREDIT ON DIVIDEND>.

Wasn't too sure about this, but I think I did it correctly! Anyway, at least you can edit the online Form now within 12 Months of submission.

Mmm, my understanding was the dividend figures do not include the tax credit (on the paper form at least...)

QB.

[rawly]

Mmm, my understanding was the dividend figures do not include the tax credit (on the paper form at least...)

QB.

I ended up judging it on the fact that PAYE is the GROSS figure, so the Dividend must be the same surely! Plus the auto calculation from HMRC themselves added on the 10% as Income. Anyway, be interesting to hear other people's thoughts on this. I can still change it anyway.....!

Nothing is simple in the world of HMRC is it! I guess it is how you interprete "Derived Income anywhere on this Form" - I took it as meaning the Total Income shown as the Input to the whole 'SA form' - which isn't quite the same as the income I actually received in my bank after all Taxes etc.... But they didn't ask that did they - or did they!

[QwertyBerty]

I ended up judging it on the fact that PAYE is the GROSS figure, so the Dividend must be the same surely! Plus the auto calculation from HMRC themselves added on the 10% as Income. Anyway, be interesting to hear other people's thoughts on this. I can still change it anyway.....!

Nothing is simple in the world of HMRC is it!

Very true. I'll double check later.

QB.

[QwertyBerty]

Just had a quick look, the dividend you put in the paper form should not include the tax credit.

QB.