services company question on tax return

[flatfish]

Paranoid?

HMRC clarification: http://www.hmrc.gov.uk/sa/service-co...s-question.htm

In summary, then:

If you have already filed your 2007/08 SA Form and left this question blank, then we are unlikely to bother with you.

If you have read the updated guidance, are a Contractor working through your own Limited Company,operate outside IR35 and pay yourself via dividends and salary, then you are obliged to fill this bit in and we will most likely add you to our 'Potential IR35 Investigation' pile.

[thunderlizard]

I really don't like the way they talk about providing services to a client "through" a company. I bet HMRC don't talk about their employees providing a service to the taxpayer "through" HMRC. I work "for" my company, not "through" it, and I bet 99% of other people in employment do the same.

[Likely]

In summary, then:

If you have already filed your 2007/08 SA Form and left this question blank, then we are unlikely to bother with you.

If you have read the updated guidance, are a Contractor working through your own Limited Company,operate outside IR35 and pay yourself via dividends and salary, then you are obliged to fill this bit in and we will most likely add you to our 'Potential IR35 Investigation' pile.

definitely.

THE HMRC has indicated in the last Budget note that
"better dealing with ir-35" is indeed the purpose of the questions.

[planetit]

Based on the HMRC guidance I would be OK to leave the box on the return blank because:-

“the services were provided under a contract between the client(s) and a company of which you were, at any time during the tax year, a shareholder ...”

Does not apply. There is a contract between the client and the agency, but not between the client and Myco. Guess this would be the same for most contractors.

[AZZIK]

Based on the HMRC guidance I would be OK to leave the box on the return blank because:-

“the services were provided under a contract between the client(s) and a company of which you were, at any time during the tax year, a shareholder ...”

Does not apply. There is a contract between the client and the agency, but not between the client and Myco. Guess this would be the same for most contractors.

Any clarification from our in-house guys? Nixon, SJD??

[Hex]

Based on the HMRC guidance I would be OK to leave the box on the return blank because:-

“the services were provided under a contract between the client(s) and a company of which you were, at any time during the tax year, a shareholder ...”

Does not apply. There is a contract between the client and the agency, but not between the client and Myco. Guess this would be the same for most contractors.

Why do you think they mean the same by the term "client" as you do? It seems reasonable to think of the Agency as your company's client as this is who the contract is with.

It is common to refer to your company's client as the "agency" and the agency's client as the "client" to avoid confusion when all three are being discussed, but that doesn't stop the agency being your client.

[Epiphone]

Any clarification from our in-house guys? Nixon, SJD??

Nixon are awaiting clarification.

[planetit]

Why do you think they mean the same by the term "client" as you do? It seems reasonable to think of the Agency as your company's client as this is who the contract is with.

You might be right. But they have already had 2 goes at clarifying it, and people are still non the wiser. Did I perform services for the agency?

Maybe what they really mean is "Do you think we should consider the possibility that you are caught by IR35?)

[Likely]

"Do you think we should consider the possibility that you are caught by IR35?)

It is beyond doubt that this is their motive.

The discussion should focus on whether this is legal to ask for on the SA and P35.

I am far from competent on deciding for myself and I will follow advice
Accountants tell they are waiting for clarification from HMRC, I think we have to consider opinions from third party bodies like PCG , etc. as well and form stance ...

[Dark Black]

...
Nixon tell they are waiting for clarification from HMRC, I think we have to consider opinions from third party bodies like PCG , etc. as well and form stance ...

According to the email I received from NW today they say (based on the HMRC clarification in the link on this thread:

"Our opinion would be to complete this question on your tax return"



Not happy.

As has been said it appears that if the SA had alreayd been completed then a blank was ok but now it is not. How can two different possibilities for filling in the SA be allowed in the same year? Can't be legal surely?