'Service Companies' question in tax return: ignore or complete?

[mickael28]

Hiya,

I just noticed that my accountant filled the 'service companies' question in my personal tax return (and they just told me today that they filled that question in the P35 as well).

I've now been reading that some people suggest to ignore that question and doesn't need to be answered:

http://www.taxation.co.uk/taxation/A...vice-companies

Do you guys complete that question in your tax return? or can we ask the accountant to leave it empty as suggested by some articles?

[BolshieBastard]

Hiya,

I just noticed that my accountant filled the 'service companies' question in my personal tax return (and they just told me today that they filled that question in the P35 as well).

I've now been reading that some people suggest to ignore that question and doesn't need to be answered:

http://www.taxation.co.uk/taxation/A...vice-companies

Do you guys complete that question in your tax return? or can we ask the accountant to leave it empty as suggested by some articles?

My accountant does my tax return.

This question is not answered by them.

[Clare@InTouch]

If it's been completed on the P35 then you should complete it on your tax return too. Not answering is likely to draw more attention to you than ignoring it would, especially if it's been answered in prior years.

The service company question always worries people, yet it's so broad that it applies to Carpenters, Electricians, Doctors and Dentists etc. as much as to IT Consultants, so it doesn't narrow down HMRC's list very far at all. It will be applicable to simply anyone who provides their personal service through a limited company, and it doesn't necessarily follow that a service company is subject to IR35.

[philip@wellwoodhoyle]

I think the general trend is to complete the question regardless of whether IR35 is likely to apply or not. As said above, it brings in all manner of trades and professions, many of which could never be caught by IR35. With so many tax returns having the boxes completed, it really will muddle HMRC so much that they can't use the box anyway, which is a win-win for everyone (except HMRC). It was a stupid idea anyway and they deserve it to turn out completely useless.

[mickael28]

Thank you guys!, I had not paid attention at that box until I read that article talking about it... but better to leave things as they are now then, as that has been completed in previous tax years and in the P35 as well.

Many thanks!