 |
|
| CURRENT SECTION :: Section 660 / S660 | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
|
 |
The nation’s top accountants will today meet with the Inland Revenue to complain about the way it treats family-run businesses, following its controversial 660A ruling against Arctic Systems. Leading professionals say the decision in favour of the settlement legislation could force at least 200,000 ‘husband and wife companies’ to pay an extra £1bn in tax. The accountants intend to appeal for greater clarity under the law and say that under the present system, people risk over declaring on tax returns because it is “so uncertain.” These calls come from the 660AGroup, a new pressure group, comprising of professionals from the Association of the Chartered Certified Accountants (ACCA), the Chartered Institute of Taxation (CIOT) and the Institute of Chartered Accountants of England & Wales (ICAEW). They will meet IR deputy chairman, David Harnett, and are expected to discuss the process where both husbands and wives draw dividends as profit in a ‘legitimate’ way to cut tax charges. Chas Roy-Chowdhury, Director of Tax at the ACCA, said: “There may be as many as 800,000 such family businesses in the UK. We want more clarity from the Inland Revenue. At the moment, the law is so uncertain. “We think many family business owners will be providing information on their self–assessment tax returns that they need not provide, and will end up paying too much tax.” The ruling against Arctic Systems has prompted extra criticism that the IR ignored the role of a woman in providing a home and raising children, so her husband can concentrate on running the business. “Many will be able to prove quite easily that wives are legitimately helping to run the family business,” explains Roy-Choudhury. “Doing some typing at home or chasing up invoices ought to be enough. The problem is that there is no clarity on this from the Revenue.” In speaking to the Daily Telegraph, he confirmed that “keeping house is not considered enough” but he believes it is relevant. “It is recognized in the divorce courts through the pensions splitting legislation, and it is recognised in the tax credit system. It is grossly unfair that the Revenue can sideline what the wife is doing to enable her husband to go out and run the business.” Previous Page
|
|
  |
||||||||||||||||||||||||
| All content © Contractor UK Limited | [Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |