 |
|
| CURRENT SECTION :: Section 660 / S660 | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
|
 |
The Inland Revenue has vowed to clarify tax rules for hundreds of thousands of ‘husband and wife’ companies that use dividend payment as a means of income. In a meeting with leading accountants, the Revenue said it acknowledged the need to clarify its interpretation of controversial 660A, but could take two months to do so. The decision has been made by David Harnett, IR deputy chairman, who was told by the opposing 660A Group of the need for action before the January tax returns. No details or other advice has been disclosed by the IR, which said it would not comment on the Arctic Systems case because of legal reasons. However, the taxman does intend to publish clear and detailed guidelines setting out what sort of businesses are likely to fall foul of 660A in the future. Accountants said they welcomed the meeting as well as the Revenue’s positive response. “We were encouraged by their willingness to listen,” said Anne Redston, of Ernst and Young. Mike Warburton, at accountants Grant Thornton, argues the high-profile nature of the Arctic case is a problem for the Revenue. “They are keen to lower the temperature,” he said. Chas Roy-Chowdhury, Head of Tax at the Association of Chartered Certified Accountants, believes “tax payers need clear, concrete guidance” if they are to be expected to complete their tax return accurately. “Why has the Revenue been dragging its feet for so long over this?” he said. “It is because of this lack of clarity that Mr and Mrs Jones had to resort to litigation and even that hasn’t produced a satisfactory result. We still don’t know where we stand.” The Professional Contractors Group, which backed Diana and Geoff Jones of Arctic Systems, is likely to appeal to the Special Commissioners after it decided Mrs Jones was not active enough in the business to warrant her own income. Previous Page
|
|
  |
||||||||||||||||||||||||
| All content © Contractor UK Limited | [Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |