services company question on tax return

[Frogstomp]

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?

I had similar advice from SJD.. initially 'don't fill it in' and now 'do fill it in'.. mostly down to the general confusion as to the meaning of the question (and the timing of the HMRC clarification)..

[AZZIK]

Has anyone ben advised by PCG or QDOS on how to fill this question in if you are working outside IR35?

[juststarting]

Has anyone ben advised by PCG or QDOS on how to fill this question in if you are working outside IR35?

There are two related threads at PCG neither seems to have a conclusion. The PCG is not commenting on this. The last comment there suggest IR35-outside companies to fill the Service Companies box on the return.

But then someone pointed out this article ( and comment from 28 March ) which suggests to leave the box alone ...

http://www.accountingweb.co.uk/cgi-b...%20%25B%20%25Y

[AZZIK]

Doesnt the question mean that anyone/everyone who has a ltd company has to complete this section?? how is this going to be beneficial to HMRC? Will it really provide them with "potential" victims?

[juststarting]

Doesnt the question mean that anyone/everyone who has a ltd company has to complete this section?? how is this going to be beneficial to HMRC? Will it really provide them with "potential" victims?

The issue mate is that they seek to identify people who draw most of their profits as dividends. It lets them easily identify IR35 investigation targets no matter whether if you believe you are outside or inside.

[Dark Black]

Anyone else had any more advice on this yet?

I'm thinking of just telling my accountant to live it blank if I don't hear anything to the contrary soon.

[morpheus]

The guidance I received from Nixons was that is should be completed, based on this quote from the HMRC guidance it would seem a lot of people will have to complete the box:

"the company’s income was, at any time during the tax year, derived wholly or mainly (that is, more than half of it) from services performed by the shareholders personally"

[Likely]

Anyone else had any more advice on this yet?

I'm thinking of just telling my accountant to live it blank if I don't hear anything to the contrary soon.

HMRC has told the accounting lobby that the purpose of the question is to identify ir35 targets ( and managed companies ). so .... hold tight.

[AZZIK]

HMRC has told the accounting lobby that the purpose of the question is to identify ir35 targets ( and managed companies ). so .... hold tight.

I'm still waiting for more advice - anyone else?

[poopscoop]

From what I gather it seems we do not have to answer this question for the 2007/08 Tax Return.

Q. How would HMRC penalise a taxpayer who completes this question incorrectly in the future?

A. HMRC has confirmed that ‘there will be no adverse consequences’ for taxpayers who have already submitted a 2007/08 tax return in which this box has been incorrectly completed.

4.9.08