Originally posted by LisaContractorUmbrella
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RTI - Service Comnapy Question
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Originally posted by MicrosoftBob View PostAs there is no legal definition of a service company, isn't the nature of it open to interpretationComment
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Originally posted by TheCyclingProgrammer View PostRegardless of whether or not we consider ourselves "personal services companies" (which arguably most of our companies are), that doesn't appear to be what the question is asking to me. It's asking if we've "operated" IR35 or MSC legislation. Without defining "operated". Does it simply mean you've considered it and decided it doesn't apply? Or does it mean you've operated one or more of your contracts as inside IR35?
CraigComment
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Originally posted by Craig at Nixon Williams View PostI have checked with HMRC a couple of months ago and they said the latter - if you have operated IR35 (and made a deemed payment) then you should say yes to the question, otherwise it should be no.
CraigComment
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Originally posted by TheCyclingProgrammer View PostThanks Craig, useful to know (although I'll double-check with my own accountant too). I assume the SAR questions for 2013-14 will remain unchanged?
HM Revenue & Customs: What to report
There's a difference between your accountant asking you if you're a service company, which is a question of fact, and the rather misleading HMRC question which means more than it actually reads!Comment
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Originally posted by Clare@InTouch View PostThere's a difference between your accountant asking you if you're a service company, which is a question of fact, and the rather misleading HMRC question which means more than it actually reads!Comment
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Originally posted by TheCyclingProgrammer View PostI must have misunderstood, was the quote in OP something InTouch sent then? I was under the impression he was quoting the submission form.Comment
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Originally posted by TheCyclingProgrammer View PostI must have misunderstood, was the quote in OP something InTouch sent then? I was under the impression he was quoting the submission form.Comment
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I need to answer the RTI question as well - I'll be putting "No".
My contracts are IR35 OK but my actual working practices may not be - at a level just above support monkey, it's hard to avoid Direction and Control.
To mitigate this, I pay small salary and put most of the rest in a pension. What's left, after expenses, is only a few percent - possibly within the IR35 5%.
However, I don't operate the legislation and I don't calculate any deemed payment - so the answer is "No"
It's stupidly written legislation and each iteration of the question makes it worse.Comment
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Just think of it as a conditional statement ...
answer = (isPSC && insideIR35);
So you have to be both in order to answer "yes", I would think.
IANAA but I think it would be hard for HMRC to dispute this line of reasoning. If they want more precise responses they need to be asking 2 separate questions ...Comment
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