HMRC Questionnaire

[mickey]

Hi, has anyone seen the HMRC questionnaire where one of the questions is "are you a personal service company?

You are a personal service company if more than half your income is derived from services that are performed by it’s shareholders and provided under contracts between your company and it’s clients."



How does a positive answer affect the IR35 status?

[Craig at Nixon Williams]

Hi, has anyone seen the HMRC questionnaire where one of the questions is "are you a personal service company?

You are a personal service company if more than half your income is derived from services that are performed by it’s shareholders and provided under contracts between your company and it’s clients."



How does a positive answer affect the IR35 status?

Do you mean the end of year declaration for payroll where it asks if you are a service company?

[mickey]

Yes

[DaveB]

It's been discussed on here previously if you have a look around. The key point was not whether you were a PSC, you almost certainly are as a one man Ltd, but whether you have "operated the Intermediaries legislation (sometimes known as IR35) or Managed Service Companies Legislation".

Consensus was that you should answer No unless you know you are IR35 caught and have made Deemed Payments during the year.

You should only answer Yes if you are IR35 caught and have paid yourself accordingly.

[Craig at Nixon Williams]

I have the question worded incorrectly - it simply said "Are you a service company?" which is the first part of the question from the old P35.

The full question should read "Are you a Service Company and have operated the Intermediaries legislation (chapter 8 of part 2 of ITEPA, sometimes known as IR35)?". This should only be answered yes if you have operated IR35 and paid a deemed salary in line with the legislation.

The way that you answer the question shouldn't affect your IR35 status as that is determined by the contents of your contract and associated working practices. However I do not know how HMRC intend to use the data collected from the answers to this question.

[mickey]

Thanks

[Contreras]

Hi, has anyone seen the HMRC questionnaire where one of the questions is "are you a personal service company?

You are a personal service company if more than half your income is derived from services that are performed by it’s shareholders and provided under contracts between your company and it’s clients."

How does a positive answer affect the IR35 status?

Same question was discussed (and answered) recently here: http://forums.contractoruk.com/accou...-question.html

[mickey]

Thanks