What is next tax return? The one for last personal year or current personal year? If latter, no skin off my nose and I shall laugh and SNEER at all you all cos' I retired from contracting at end of March.
PS SNEER
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Reply to: 'PSC' questions on personal tax returns?
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Previously on "'PSC' questions on personal tax returns?"
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Originally posted by WindyAnna View PostAnother comment from Sunday Solutions when they cold called me and I asked if they were sure of a number of the claims they were making ...
"well we are pretty sure that HMRC will accept it even though it hasn't been tested in law, after all they would have to come after all law and accounting firms set up as LLPs if they came after the contractors"
I didn't even know where to start to respond .... so I politely declined their kind offer and put the phone down.
They are very persistent though.
They called me again after the P4 thingie - "we understand you are a contractor working through Prosperity4" - how did they know that I wonder? anyway I told them that they were wrong and that I am actually a state registered midwife working in the NHS.
WA
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Another comment from Sunday Solutions when they cold called me and I asked if they were sure of a number of the claims they were making ...
"well we are pretty sure that HMRC will accept it even though it hasn't been tested in law, after all they would have to come after all law and accounting firms set up as LLPs if they came after the contractors"
I didn't even know where to start to respond .... so I politely declined their kind offer and put the phone down.
They are very persistent though.
They called me again after the P4 thingie - "we understand you are a contractor working through Prosperity4" - how did they know that I wonder? anyway I told them that they were wrong and that I am actually a state registered midwife working in the NHS.
WA
Leave a comment:
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Originally posted by Jog On View Post
1) Are you operating as a Personal Service Company?
2) What is the amount of income derived from the Service Company?
No
2) What is the amount of income derived from the Service Company?
N/A
There is no legal definition of a Personal Service Company in Company Law. Ergo there is no such thing and I cannot be running one.
Actually there is in tax legislation but that is to do with supplying the services of a person.
I believe that there were thoughts of changing the question.
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They've tried to introduce the term Personal Service Company for some reason. I've long been suspicious about this term. That said the term still has no legal meaning so you should be able to ignore it.
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'PSC' questions on personal tax returns?
Just had an unsolicited phonecall and email follow up from Sunday Solutions - I see from a search of the forums that they have been covered here and marked as cold calling spammers - however I thought I'd just bring up some of the scaremongery of the email I just got from them as I'd be interested to hear other's thoughts.
My main point of interest is their claim that apparently tax returns will start asking us if we run 'personal service companies' and how much we make form them - this cannot be so can it?
As far as I know El Gordo's comments about 'artificially incorporating to avoid paying your due share' was aimed as much at eastern europeans as it was at anyone else artificially incorporating.
Can anyone explain what is deemed as 'artificial' about Ltd companies to contract out of?
I'll quote some of the email with the particular points of interest in bold:
General consensus suggests that the way forward for freelancers is to revert to their own Personal Service Company/Ltd Company. Our experienced tax and legal advisors believe that this would be ‘akin to unlocking the door to go back into the dragon’s den’, as HMRC has lost none of its desire to enforce IR35 taxation and will of course, find this easier to apply to ‘one man companies’.
Consider the following statement made by Gordon Brown in his latest budget speech: “But I do need to act to deal with individuals artificially incorporating as small companies to avoid paying their due share of tax.” This is a direct reference to IR35 and many contractors are unaware that there will be two new tick boxes on their next tax returns which will ask 2 direct questions:
1) Are you operating as a Personal Service Company?
2) What is the amount of income derived from the Service Company?
These two questions will automatically place you on the radar for an IR35 investigation, in a manner never before seen. It will ensure that you pay the full amount of tax and NI in accordance with IR35 – 95% of your income could potentially be subject to PAYE with no dividends allowed.
I've seen scaremongery used to try and push umbrella services but I think this has hit an all time low - PSC questions on tax returns.... any truth in that at all?Tags: None
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