services company question on tax return

[AZZIK]

How do you answer this if your outside IR35?

[basshead]

The guidance says:

"Total amount of any income included anywhere on this return, derived from the provision of your services through a service company:

You should complete this box if you have received any form of income (including employment income and dividends) during the year in question from a company through which you provided your services personally and of which you are a sole or joint shareholder."

Seems pretty black and white, SJD recommended to me that it be completed.

[FarmerPalmer]

personally I provide a product, in the form of software.

the client has chosen to pay me for the time it takes to develop, but that is their choice, I have offered a fixed price deal, but I deliver a product to them.

or you could take the line that you provide a service to the client, to aid them developing their product.

[Lewis]

The guidance says:

"Total amount of any income included anywhere on this return, derived from the provision of your services through a service company:

You should complete this box if you have received any form of income (including employment income and dividends) during the year in question from a company through which you provided your services personally and of which you are a sole or joint shareholder."

Seems pretty black and white, SJD recommended to me that it be completed.

ICAEW are seeking clarification. My accoutant's advice (and mine) is to await clarification. I'll post some links in a sec.

[AZZIK]

Yup - thats exactly what i've been told.

HMRC are playing tricks I guess....

[Lewis]

http://www.accountingweb.co.uk/cgi-b...rmat=%25o-%25B

and, see page 4 of ICAEW August 2008 edition of TaxLine

http://www.icaew.com/index.cfm/route...tice_No_20/pdf

We consider that, unfortunately, there was insufficient consultation with the profession on the detailed content of the new [sa] form. This has already resulted in some problems, most notably with the service company question on page TR4 of the return and with the requirements in relation to reporting capital gains. At the time of writing this supplement, the Tax Faculty is in discussion with HMRC on how best to resolve these issues. Further guidance will be published on the Tax Faculty's free weekly newswire and in TAXline as soon as possible.

[Lewis]

Plus I am not sure if the P35 and SA answers must match as I said I was not a Serivce Company on my P35 following advice at the time from ICAEW.

[moorfield]

Plus I am not sure if the P35 and SA answers must match as I said I was not a Serivce Company on my P35 following advice at the time from ICAEW.

IMO they should match, the less inconsistencies for Hector to pick up on the better. This is why I got miffed with my accountants earlier this year for filling out the P35 Q6 without checking with me.

[Qdos Contractor]

HMRC clarification: http://www.hmrc.gov.uk/sa/service-co...s-question.htm

[juststarting]

IMO they should match, the less inconsistencies for Hector to pick up on the better. This is why I got miffed with my accountants earlier this year for filling out the P35 Q6 without checking with me.

I think we are with the same accountant , they seem to have dones this with all their clients.

However , I later asked them to change from Yes/No to No/ No and they did it online.