Reply to: 2008 Self Assessment Tax Return

[QwertyBerty]

However, on the PCG site there is a document by Bond Pearce, Abbey Tax and Accountax. It has a section titled "comment by Accountax"

Yup, that's the thing I'm referring to.

QB.

[Lewis]

David Smith (head honcho at Accountax) told me No/No. I haven't seen anywhere that he has changed his mind. Can you post a link?

I was told Yes/No when I called the PCG helpline (I thought it was run by Accountax when I last posted but that was a mistake I have checked and it is Abbey Tax). I have nothing in writing. However, on the PCG site there is a document by Bond Pearce, Abbey Tax and Accountax. It has a section titled "comment by Accountax" which says

The definition in the P35 guidance “ A service company is a company through which the personal services of one of more persons are provided to end clients…” is not, in our view, purporting to address only company’s where the personal service requirement of IR35 fulfilled, it is simply your average one man band limited company.

As it happens I answered No/No but the vast majority of advice I have heard and read says to answer Yes/No and so I was trying to assure the poster that I would not worry. I asked about amending my answers to Yes/No but was told by a few 'experts' (helplines again) not to worry about is as there is so much confusion and people still disagree on the correct answer anyway and HMRC are going to ignore the answers this year ... so I am not bothered about it.

[QwertyBerty]

David Smith (head honcho at Accountax) told me No/No. I haven't seen anywhere that he has changed his mind. Can you post a link?

Curious as Accountax are advising via PCG to put yes/no and fill in the SA accordingly.

QB.

[FarmerPalmer]

I provide bespoke software to my clients, is this classed as goods or services ?

I ask my current client if I could supply for a fixed price, but they want to pay by the hour so we don't get into some wrangle about them not getting the requirements right at the start of the development. They have had issues with this before - especially with overseas suppliers.

[THEPUMA]

There is no need to change. HMRC have said they will not use your answers this year for targeting. People still disagree with what the answers should be. But the 'experts' (QDOS, Accountax) say Yes/No is correct but that essentially this year it doesn't matter anyway.

David Smith (head honcho at Accountax) told me No/No. I haven't seen anywhere that he has changed his mind. Can you post a link?

[FarmerPalmer]

Has anyone asked their accountants how they were answering this on their personal tax returns ?

After all I guess Accountants / Solicitors / Engineers may all be classed as Service Companies from this description .... although Accountants and Solicitors normally operate as (self-employed) partnerships.

Thanks for the reminder - I need to ask them to send me a tax return.

[Lewis]

I can't risk that.

Why is this ?

This is the HMRC statement

http://www.hmrc.gov.uk/employers/200...35-Quest-6.htm

(b) is beacuse of (a)

If you want to amend you can. But then you are amending to the WRONG answer according to the experts and you accountants. How are you going to justify that?!

[Likely]

There is no need to change. HMRC have said they will not use your answers this year for targeting. People still disagree with what the answers should be. But the 'experts' (QDOS, Accountax) say Yes/No is correct but that essentially this year it doesn't matter anyway.

I can't risk that.

Why is this ?

[Lewis]

My accountant, one of the famous ones , has filled Yes / No to the questions "Are you a Service Company" and "Do you operate IR35".


Reading at PCG suggests that a Yes/No can increase the risk of targeting your Company for investigation ?!?

Does anyone know if the data submitted can be changed online ?

Anyone in this situation ?

There is no need to change. HMRC have said they will not use your answers this year for targeting. People still disagree with what the answers should be. But the 'experts' (QDOS, Accountax) say Yes/No is correct but that essentially this year it doesn't matter anyway.

[Likely]

My accountant, one of the famous ones , has filled Yes / No to the questions "Are you a Service Company" and "Do you operate IR35".


Reading at PCG suggests that a Yes/No can increase the risk of targeting your Company for investigation ?!?

Does anyone know if the data submitted can be changed online ?

Anyone in this situation ?

[Moscow Mule]

Well I might be wrong on this, but I thought these questions (P35 / SA) were both new this year? Therefore the questions wouldn't have been done by your accountant last year??

There have been similar questions for the last 2 (?) years. Each year's being slightly more ambiguous and annoying than the last.

[Sausage Surprise]

I did my own PAYE online this year and ticked no/no as I understood both questions as applying to inside IR35 income.

However, I don't know what my accountant answered last year. If the answer is inconsistent could it ring alarm bells with hmrc? Is there any way of checking this?

Also, I can't remember how I filled out the service company income on my SA!
(I think I just entered in income and divs as a normal employee/director of my company and left the service company figures blank)
I logged in the my online SA account and there is no option to view previous years submissions (why on earth not is completely beyond me!).
Is there anyway of checking previous years submissions?

I saved my last year's submission as a pdf - did you not do this?

[chris79]

Well I might be wrong on this, but I thought these questions (P35 / SA) were both new this year? Therefore the questions wouldn't have been done by your accountant last year??

[hgllgh]

I did my own PAYE online this year and ticked no/no as I understood both questions as applying to inside IR35 income.

However, I don't know what my accountant answered last year. If the answer is inconsistent could it ring alarm bells with hmrc? Is there any way of checking this?

Also, I can't remember how I filled out the service company income on my SA!
(I think I just entered in income and divs as a normal employee/director of my company and left the service company figures blank)
I logged in the my online SA account and there is no option to view previous years submissions (why on earth not is completely beyond me!).
Is there anyway of checking previous years submissions?

[Sausage Surprise]

Well I ticked no/no for P35, and left the self assessment blank for this..

I'll let the ****ers come and prove me wrong at which point my £50,000 legal expenses insurance can kick in.

If they can't be arsed to define clearly what a 'service company' is, then how can I confidently agree I am?

I'm with you on this one.