Reply to: SA tax return - services company section?

[Clare@InTouch]

Gross divs being the div + that tax credit thing they add on ?

cheers

That's right, so just take the net and divide by 9 then multiply by 10.

[ELBBUBKUNPS]

Both salary and gross dividends.

Gross divs being the div + that tax credit thing they add on ?

cheers

[Clare@InTouch]

Its only the divs you need to include in the service company question on SA or both salary and divs from the service company ?

Both salary and gross dividends.

[ELBBUBKUNPS]

AFAIAA the entries on the P35 and the SAR are not linked, although logically they should say the same thing. That said, yes, the dividends should go on this part.

I don't think, however, HMRC have ever penalised anyone for skipping the box: its not a calculating box, just a reporting one.

Its only the divs you need to include in the service company question on SA or both salary and divs from the service company ?

[geoffreywhereveryoumaybe]

I always insist that my acccountant doesn't identify my ltd co as a PSC on the P35 and have never ticked the box or supplied the details on the tax return.

[Craig at Nixon Williams]

To clarify what Kate has said above, this will become a requirement for for 2013/14 P35 which will be submitted in 2014.

[Kate Cottrell]

Just to say that from next year it will be a legal requirement to complete the boxes on the P35. The question will be condensed into one but the final wording has not been decided. See the last IR35 Forum minutes for confirmation.

Kate

[Jessica@WhiteFieldTax]

So assuming your accountant has submitted your P35 stating your a service company, does that mean now that when I complete my tax return I have to enter any divs under the question,

1. If you provided your services through a service company (a company which provides your personal services to third parties), enter the total of the dividends (including the tax credit) and salary (before tax was taken off) you withdrew from the company in the tax year read page TRG 21 of the guide:

AFAIAA the entries on the P35 and the SAR are not linked, although logically they should say the same thing. That said, yes, the dividends should go on this part.

I don't think, however, HMRC have ever penalised anyone for skipping the box: its not a calculating box, just a reporting one.

[ELBBUBKUNPS]

So assuming your accountant has submitted your P35 stating your a service company, does that mean now that when I complete my tax return I have to enter any divs under the question,

1. If you provided your services through a service company (a company which provides your personal services to third parties), enter the total of the dividends (including the tax credit) and salary (before tax was taken off) you withdrew from the company in the tax year read page TRG 21 of the guide:

[Greg@CapitalCity]

Whilst this may be true, have you seen any adverse affects from taking the opposite action and ignoring the question?

Can't comment I am afraid, as we have always advised our clients to answer the question, and I think most accountants will do the same. But to answer your question, I have not heard of any compliance visits triggered by ignoring the question.

[malvolio]

Thats strange - the article talks about Service Company questions that appear on a company's PAYE annual return, as if they actually appear on a personal self assessment tax return?

Probably in the interests of simplicity and clarity? HE's only really talking about the two questions, set against the average one-man-band company having to look at the totalilty. I'm only guessing , but most of the author's articles are illustrating principles rather than writing manuals. I could be completely wrong of course, it has been known...

Worth also noting that the barrister's question, as quoted in the CUK article, is not actually relevant to contractors or to this debate. He was seeking to clarify that he, as a disintersted individual, could ignore the question. 99% of us contractors aren't disinterested.

[tractor]

..

Yep, agree with Clare on this one. It makes no sense to leave the box blank if you work through your own PSC. This has been debated for years and years (and also the P35 question that is similar) - and I have not seen any adverse effects to responding truthfully to this question.

Whilst this may be true, have you seen any adverse affects from taking the opposite action and ignoring the question?

[Greg@CapitalCity]

Or alternatively try <snip>The important question framed by HMRC that is, of course, totally ambiguous | Contractor Accountants[/url] for the definitive answer. Perhaps...

Thats strange - the article talks about Service Company questions that appear on a company's PAYE annual return, as if they actually appear on a personal self assessment tax return?

[TheFaQQer]

There's a thing on contractor weekly that might be useful

Tax Return: Fishing for IR35

KUATB

[malvolio]

Or alternatively try <snip>The important question framed by HMRC that is, of course, totally ambiguous | Contractor Accountants[/url] for the definitive answer. Perhaps...